Inventure Foods, Inc (SNAK) saw its loss widen to $14.14 million, or $0.72 a share for the quarter ended Apr. 01, 2017. In the previous year period, the company reported a loss of $1.02 million, or $0.05 a share. On an adjusted basis, loss per share was at $0.13 for the quarter compared with a profit of $0.01a share in the same period last year. Revenue during the quarter dropped 13.22 percent to $49.62 million from $57.18 million in the previous year period. Gross margin for the quarter expanded 93 basis points over the previous year period to 17.16 percent. Total expenses were 97.46 percent of quarterly revenues, up from 96.28 percent for the same period last year. That has resulted in a contraction of 118 basis points in operating margin to 2.54 percent.
Operating income for the quarter was $1.26 million, compared with $2.13 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.59 million compared with $3.66 million in the prior year period. At the same time, adjusted EBITDA margin contracted 320 basis points in the quarter to 3.20 percent from 6.40 percent in the last year period.
“We are pleased with the progress we made during the first quarter across key operational and financial areas of our business,” commented Terry McDaniel, Chief Executive Officer of Inventure Foods. “We made two important steps forward with the strong frozen segment gross margin expansion and our snack segment returned to growth driven by the strength of our Boulder Canyon brand and our better-for-you premium private label product offering. As we progress through the year, we are intently focused on the execution of our strategic initiatives across the snack and frozen segments to generate increased sales and profitability. At the same time, our management team and Board of Directors remain committed to maximizing value for our shareholders as we move forward with our ongoing strategic and financial review.”
Working capital turns negative
Working capital of Inventure Foods, Inc has turned negative to $58.97 million on Apr. 01, 2017 from positive $62.12 million on Mar. 26, 2016. Current ratio was at 0.54 as on Apr. 01, 2017, down from 2.62 on Mar. 26, 2016. Cash conversion cycle (CCC) has decreased to 18 days for the quarter from 112 days for the last year period. Days sales outstanding went down to 33 days for the quarter compared with 34 days for the same period last year.
Days inventory outstanding has decreased to 53 days for the quarter compared with 140 days for the previous year period. At the same time, days payable outstanding went up to 68 days for the quarter from 62 for the same period last year.
Debt moves up
Inventure Foods, Inc has witnessed an increase in total debt over the last one year. It stood at $95.97 million as on Apr. 01, 2017, up 5.11 percent or $4.67 million from $91.30 million on Mar. 26, 2016. Total debt was 66.69 percent of total assets as on Apr. 01, 2017, compared with 44.69 percent on Mar. 26, 2016. Debt to equity ratio was at 9.71 as on Apr. 01, 2017, up from 1.77 as on Mar. 26, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
