Advertisement
New Zealand markets closed
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NZD/USD

    0.5970
    -0.0006 (-0.10%)
     
  • NZD/EUR

    0.5536
    +0.0003 (+0.06%)
     
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD

    2,254.80
    +16.40 (+0.73%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • NZD/JPY

    90.3320
    -0.0610 (-0.07%)
     

Innovative Food Holdings, Inc. Reports 2022 First Quarter Financial Results

Innovative Food Holdings
Innovative Food Holdings
  • Total revenue up 28% year-over-year to a first quarter record of $15.6 million

  • Specialty foodservice revenue increased 69% year-over-year to a first quarter record

  • Pursuing organic and non-organic initiatives to expand growth of digitally native brands on IVFH’s eCommerce platform

BONITA SPRINGS, Fla., May 17, 2022 (GLOBE NEWSWIRE) -- Innovative Food Holdings, Inc. (OTCQB: IVFH) (“IVFH” or the “Company”), a leading end-to-end DTC eCommerce platform and direct-to-chef online platform that provides high-quality, unique specialty foods through eCommerce offerings and multichannel partnerships, today reported its financial results for the first quarter of 2022.

“Record first quarter sales are encouraging and reflect the benefits of our diversified revenue streams. We generated record specialty foodservice revenue driven by our nationwide direct-to-chef online program as well as strong demand from hospitality foodservice clients out of our Chicago and Pennsylvania facilities. Foodservice revenue has expanded above pre-COVID levels, as we successfully pursue growth opportunities on the back of positive market trends due to further reopening activities and we continue to leverage our platforms to provide unique high-quality specialty food offerings to chefs and other consumers across the U.S. In addition, our agile chef and consumer platforms are particularly important as we work with our customers and vendors to navigate unprecedented logistics, supply chain, and inflationary challenges,” stated Sam Klepfish, CEO of Innovative Food Holdings.

ADVERTISEMENT

“While eCommerce sales remain above pre-COVID levels, we are not immune from the recent post-COVID challenges facing many eCommerce companies. There are significant market opportunities for companies like IVFH, which have a strong, agile and sophisticated end-to-end eCommerce platform. Our platform continues to attract experienced, talented and motivated team leaders, developing compelling partnerships, and increasing the effectiveness of our marketing initiatives to drive eCommerce sales in the coming quarters. In addition, we are pursuing additional organic and non-organic initiatives to leverage our eCommerce platform, which is supported by leading back-end logistics, fulfillment, and procurement capabilities, as well as our front-end digital infrastructure. We believe our powerful eCommerce platform is uniquely positioned to help small brands, as well as direct-to-consumer, and direct-to-chef companies navigate an increasingly complex business and eCommerce environment.”

“We believe we are well positioned for long-term sales growth driven by higher foodservice revenue as well as reaccelerating eCommerce growth. As revenues scale further, we believe we can improve profitability by enhancing gross margin and leveraging our fixed costs,” concluded Mr. Klepfish.

Financial Results

Revenues in the 2022 first quarter increased 28% to a first quarter record of $15.6 million, compared to $12.2 million for the three months ended March 31, 2021. First-quarter revenue benefited from a 69% increase in specialty foodservice revenue, which was partially driven by the nationwide opening of restaurants and other foodservice establishments previously affected by COVID-19, as well as strong increases in travel related foodservice. In addition, the Company’s unique supply chain capabilities continue to provide reliable, consistently high-quality specialty foodservice solutions for its customers. First quarter eCommerce revenue was down 28% to $3.6 from $5.0 million for the same period last year.

The following table sets forth IVFH’s revenue by business category for the three months ended March 31, 2022, and March 31, 2021 (unaudited):

Three Months Ended

March 31,
2022

% of Net
Sales

March 31,
2021

% of Net
Sales

%
Change

Specialty Foodservice

$

11,541,000

74

%

$

6,828,000

56

%

69

%

E-Commerce

3,612,000

23

%

4,980,000

41

%

-28

%

National Brand Management

284,000

2

%

226,000

2

%

26

%

Warehouse and Logistics Services

206,000

1

%

$

147,000

1

%

40

%

Total IVFH

$

15,643,000

100

%

$

12,181,000

100

%

28

%

For the 2022 first quarter, selling, general, and administrative (SG&A) expenses were $5.2 million, or 33% of revenue, compared to $4.9 million, or 39.8% of revenue for the same period last year. The $0.3 million increase was primarily due to increases in advertising and marketing costs, professional fees, and foodservice operating costs,

The Company recorded a GAAP net loss for the 2022 first quarter of $(1.2 million), or $(0.03) per share, compared to a GAAP net loss of $(1.8 million), or $(0.05) per share, in the prior year’s first quarter. Adjusted net income for the 2022 first quarter was a loss of $(1.4 million), or $(0.029) per share, compared to an adjusted net loss of $(1.5 million), or $(0.041) per share, for the same period last year.

Cash EBITDA, a non-GAAP metric (see tables below), for the 2022 first quarter was a loss of $(1.2 million), compared to Cash EBITDA loss of $(1.3 million) in the prior year’s first quarter.

About Innovative Food Holdings, Inc.
IVFH’s leading end-to-end direct-to-consumer e-commerce platform and direct-to-chef platform connect the world’s best artisan food makers with top chefs and epicurean consumers nationwide. Our unique ability to reach both specialty foodservice B2B customers and consumers positions IVFH as a compelling resource for artisanal food producers, CPG brands, chefs, and consumers. IVFH’s owned online retailer brands on its leading DTC e-commerce platform include www.igourmet.com and www.mouth.com.

Additional information is available at www.ivfh.com.

Forward-Looking Statements

This release contains certain forward-looking statements and information relating to Innovative Food Holdings, Inc. (the “Company”) that are based on the current beliefs of the Company’s management, as well as assumptions made by, and information currently available to, the Company. Such statements reflect the current views of the Company with respect to future events and are subject to certain assumptions, including those described in this release. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as “should,” “could,” “will,” “anticipate,” “believe,” “intend,” “plan,” “might,” “potentially” “targeting” or “expect.” Additional factors that could also cause actual results to differ materially relate to the global COVID-19 crisis, international crisis, environmental and economic issues and other risk factors described in our public filings. The Company does not intend to update these forward-looking statements. The content of the websites referenced above are not incorporated herein.

Innovative Food Holdings, Inc.
Consolidated Balance Sheets
(unaudited)

March 31,

December 31,

2022

2021

(unaudited)

ASSETS

Current assets

Cash and cash equivalents

$

3,111,168

$

6,122,671

Accounts receivable, net

3,422,003

3,256,764

Inventory

3,209,945

3,109,984

Other current assets

389,513

314,107

Total current assets

10,132,629

12,803,526

Property and equipment, net

8,094,038

8,186,227

Investments

286,725

286,725

Right to use assets, operating leases, net

199,474

232,381

Right to use assets, finance leases, net

680,358

669,039

Other amortizable intangible assets, net

61,987

72,218

Goodwill and other unamortizable intangible assets

1,532,822

1,532,822

Total assets

$

20,988,033

$

23,782,938

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable and accrued liabilities

$

4,473,440

$

5,702,905

Accrued interest

42,794

29,349

Deferred revenue

1,250,944

1,631,406

Line of Credit

2,000,000

2,000,000

Notes payable - current portion, net of discount

412,491

412,961

Lease liability - operating leases, current

63,361

74,088

Lease liability - finance leases, current

182,664

159,823

Contingent liability - current portion

187,000

187,000

Total current liabilities

8,612,694

10,197,532

Lease liability - operating leases, non-current

136,113

158,293

Lease liability - finance leases, non-current

478,262

499,240

Contingent liability - long-term

108,600

108,600

Note payable - long term portion, net

5,319,914

5,409,172

Total liabilities

14,655,583

16,372,837

Commitments & Contingencies (see note 16)

Stockholders' equity

Common stock: $0.0001 par value; 500,000,000 shares authorized; 49,343,846 and
48,879,331 shares issued, and 46,506,266 and 46,041,751 shares outstanding at March 31,
2022 and December 31, 2021, respectively

4,931

4,885

Additional paid-in capital

41,815,390

41,662,710

Treasury stock: 2,623,171 and 2,623,171 shares outstanding at March 31, 2022 and
December 31, 2021, respectively.

(1,141,370

)

(1,141,370

)

Accumulated deficit

(34,346,501

)

(33,116,124

)

Total stockholders' equity

6,332,450

7,410,101

Total liabilities and stockholders' equity

$

20,988,033

$

23,782,938


Innovative Food Holdings, Inc.
Consolidated Statements of Operations
(unaudited)

For the Three

For the Three

Months Ended

Months Ended

March 31

March 31

2022

2021

Revenue

$

15,643,111

$

12,180,899

Cost of goods sold

11,917,179

8,878,914

Gross margin

3,725,932

3,301,985

Selling, general and administrative expenses

5,172,426

4,850,828

Total operating expenses

5,172,426

4,850,828

Operating loss

(1,446,494

)

(1,548,843

)

Other income (expense:)

Impairment of investment

-

(209,850

)

Gain on interest rate swap

294,000

-

Other leasing income

5,090

5,140

Interest expense, net

(82,973

)

(90,318

)

Total other income (expense)

216,117

(295,028

)

Net loss before taxes

(1,230,377

)

(1,843,871

)

Provision for income taxes

-

-

Net loss

$

(1,230,377

)

$

(1,843,871

)

Net loss per share – basic and diluted

$

(0.03

)

$

(0.05

)

Weighted average shares outstanding – basic and diluted

46,256,160

35,872,143



Innovative Food Holdings, Inc.
Consolidated Statements of Cash Flows

Three Months Ended
(unaudited)

March 31,
2022

March 31,
2021

Adjusted Net Income and EPS(1)

Revenue

$

15,643,111

$

12,180,899

Net Income

(1,230,377

)

(1,843,871

)

Amortization of intangible assets(2)

10,231

2,870

One-time charges

-

209,850

One-time gain

(294,000

)

-

Stock related expenses(3)

152,726

157,791

Adjusted Net Income ( Loss)

$

(1,361,420

)

$

(1,473,360

)

Weighted Avg. Shares Outstanding Diluted(4)

46,256,160

35,872,143

Adjusted Fully Diluted EPS

$

(0.029

)

$

(0.041

)

Three Months Ended
(unaudited)

March 31,
2022

March 31,
2021

Cash EBITDA(1)

Net Income

$

(1,230,377

)

$

(1,843,871

)

Interest expense, taxes

77,883

85,178

Depreciation & amortization

138,361

135,854

One-time charges

-

209,850

One-time gain

(294,000

)

-

Stock related expenses(3)

152,726

157,791

Cash EBITDA

$

(1,155,407

)

$

(1,255,198

)


(1)

Adjusted Net Income and Cash EBITDA are each a non-GAAP metric. Management believes that the presentation of these non-GAAP financial measures provides useful information to investors because the information may allow investors to better evaluate ongoing business performance and certain components of the Company’s results. In addition, the Company believes that the presentation of these financial measures enhances an investor’s ability to make period-to-period comparisons of the Company’s operating results. This information should be considered in addition to the results presented in accordance with GAAP, and should not be considered a substitute for the GAAP results.

(2)

Includes non-cash amortization charges related to assets acquired

(3)

Includes stock and options-based compensation and expenses

(4)

Full Year GAAP weighted fully diluted share count


Company Contact:

Investor and Media Contact:

Ronit Wallerstein

Andrew M. Berger

Investor Relations

Managing Director

Innovative Food Holdings, Inc.

SM Berger & Company, Inc.

(718) 645-1755

(216) 464-6400

rwallerstein@IVFH.com

andrew@smberger.com