Inventure Foods Inc (SNAK) saw its loss widen to $2.56 million, or $0.13 a share for the quarter ended Sep. 24, 2016. In the previous year period, the company reported a loss of $1.74 million, or $0.09 a share. On the other hand, adjusted net loss for the quarter widened to $2.56 million, or $0.13 a share from a loss of $0.96 million or $0.05 a share, a year ago.
Revenue during the quarter dropped 4.77 percent to $66.53 million from $69.86 million in the previous year period. Gross margin for the quarter contracted 54 basis points over the previous year period to 11.91 percent. Operating margin for the quarter stood at negative 1.90 percent as compared to a negative 0.76 percent for the previous year period.
Operating loss for the quarter was $1.27 million, compared with an operating loss of $0.53 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.64 million compared with $2.37 million in the prior year period. At the same time, adjusted EBITDA margin contracted 242 basis points in the quarter to 0.97 percent from 3.39 percent in the last year period.
“Although our business continued to face certain challenges, our efforts to drive improvement across key areas of our business resulted in increased revenues for our Boulder Canyon, Jamba, and Rader Farms brands,” said Terry McDaniel, chief executive officer of Inventure Foods. “Additionally, we achieved margin expansion of approximately 300 basis points in the Snack products segment, as a result of the strategic investments we made to increase kettle capacity at our Bluffton, Indiana facility to meet strong consumer demand.”
Working capital turns negative
Working capital of Inventure Foods Inc has turned negative to $57.28 million on Sep. 24, 2016 from positive $42.79 million on Sep. 26, 2015. Current ratio was at 0.64 as on Sep. 24, 2016, down from 1.53 on Sep. 26, 2015.
Cash conversion cycle (CCC) has decreased to 43 days for the quarter from 102 days for the last year period. Days sales outstanding went down to 32 days for the quarter compared with 34 days for the same period last year.
Days inventory outstanding has decreased to 61 days for the quarter compared with 116 days for the previous year period. At the same time, days payable outstanding went up to 50 days for the quarter from 47 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 $116.47 million as on Sep. 24, 2016, up 7.96 percent or $8.59 million from $107.89 million on Sep. 26, 2015. Total debt was 54.71 percent of total assets as on Sep. 24, 2016, compared with 48.51 percent on Sep. 26, 2015. Debt to equity ratio was at 2.35 as on Sep. 24, 2016, up from 1.98 as on Sep. 26, 2015.
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