• First-quarter total revenue up 8.6% year-over-year to a first quarter record of
• Specialty foodservice increased 19.6% year-over-year to a first quarter record of
• First-quarter profitability impacted by
“I am pleased with the strong start to the year as we achieved record first-quarter revenue. The reopening of restaurants, hotels, and other travel related foodservice customers post-COVID has continued to provide us with a tailwind, enabling us to serve our customers and drive our business forward. As many of these positive trends are normalizing, we are focused on leveraging our recent success as a springboard to build a more resilient and adaptable business model, as evidenced by the year-over-year improvement in gross margin and reductions in SG&A expenses. Overall profitability during the quarter was impacted by approximately
“Over the past three months, I have had the pleasure of engaging with our customers, vendors, team members, and partners across the country as my tenure as CEO develops. IVFH has a solid foundation and committed team that is passionate about connecting the world’s best artisan food makers with top professional chefs and gourmet home chefs. The tremendous long-term potential in our industry is evident, and we are excited about the future ahead. We recognize the importance of maintaining a laser focus on our top priorities in a complex economic environment to create a robust, profitable, and sustainable business model. Additionally, we remain dedicated to promoting a culture of continuous improvement and attracting top talent to drive our growth initiatives forward. As we navigate the ever-changing landscape of the food industry, we are confident in our ability to adapt, innovate, and capitalize on opportunities that will drive long-term shareholder value,” concluded
Financial Results
Revenues in the 2023 first quarter increased 8.6% to a first-quarter record of
The following table sets forth IVFH’s revenue by business category for the months ended
Three Months Ended | ||||||||||||||
2023 | % of Net Sales | 2022 | % of Net Sales | % Change | ||||||||||
Specialty Foodservice | $ | 13,805,000 | 81.2 | % | $ | 11,541,000 | 73.8 | % | 19.6 | % | ||||
E-Commerce | 2,626,000 | 15.4 | % | 3,612,000 | 23.1 | % | -27.3 | % | ||||||
National Brand Management | 316,000 | 1.9 | % | 284,000 | 1.8 | % | 11.1 | % | ||||||
Logistics | 248,000 | 1.5 | % | 206,000 | 1.3 | % | 20.8 | % | ||||||
Total IVFH | $ | 16,995,000 | 100 | % | $ | 15,643,000 | 100 | % | 8.6 | % |
For the 2023 first quarter, gross margin as a percentage of sales was 24.0%, compared to 23.8% for the same period last year, primarily due to reduced fuel surcharges and lower shipping costs.
For the 2023 first quarter, selling, general, and administrative (SG&A) expenses were
During the three months ended
The Company recorded GAAP net loss for the 2023 first quarter of
Adjusted net loss, a non-GAAP metric (see tables below), for the 2023 first quarter was
About
At IVFH, we help make meals special. We provide access to foods that are hard to find, have a compelling story, or are on the forefront of food trends. Our gourmet foods marketplace connects the world’s best artisan food makers with top professional chefs and passionate home chefs nationwide. We curate the assortment, experience, and tech enabled tools that help our professional and home chefs create unforgettable experiences for their guests and families. IVFH’s owned online retail brands include www.igourmet.com, www.plantbelly.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
Investor and Media Contact: |
Managing Director |
(216) 464-6400 |
andrew@smberger.com |
Consolidated Balance Sheets (unaudited) | ||||||||
2023 | 2022 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 1,650,127 | $ | 4,899,398 | ||||
Accounts receivable, net | 4,829,709 | 4,969,395 | ||||||
Inventory | 3,021,465 | 3,053,852 | ||||||
Other current assets | 372,857 | 289,432 | ||||||
Total current assets | 9,874,158 | 13,212,077 | ||||||
Property and equipment, net | 7,827,980 | 7,921,561 | ||||||
Right to use assets, operating leases, net | 136,111 | 152,425 | ||||||
Right to use assets, finance leases, net | 536,843 | 570,323 | ||||||
Other amortizable intangible assets, net | 20,663 | 30,994 | ||||||
Tradenames and other unamortizable intangible assets | 1,532,822 | 1,532,822 | ||||||
Total assets | $ | 19,928,577 | $ | 23,420,202 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 4,796,700 | $ | 6,853,253 | ||||
Accrued separation costs, related parties, current portion | 559,370 | - | ||||||
Accrued interest, current portion | 18,198 | 18,104 | ||||||
Deferred revenue | 1,238,790 | 1,558,155 | ||||||
Line of Credit | 2,014,333 | 2,014,333 | ||||||
Notes payable - current portion, net of discount | 5,709,043 | 5,711,800 | ||||||
Lease liability - operating leases, current | 63,877 | 64,987 | ||||||
Lease liability - finance leases, current | 193,226 | 191,977 | ||||||
Total current liabilities | 14,593,537 | 16,412,609 | ||||||
Accrued separation costs, related parties, non-current | 1,041,425 | - | ||||||
Lease liability - operating leases, non-current | 72,234 | 87,438 | ||||||
Lease liability - finance leases, non-current | 285,036 | 333,092 | ||||||
Total liabilities | 15,992,232 | 16,833,139 | ||||||
Commitments & Contingencies (see note 16) | ||||||||
Stockholders' equity | ||||||||
Common stock: | 5,052 | 4,938 | ||||||
Additional paid-in capital | 42,367,472 | 42,189,471 | ||||||
Common stock to be issued, 832,214 and 1,499,940 shares at | 83 | 150 | ||||||
(1,141,370 | ) | (1,141,370 | ) | |||||
Accumulated deficit | (37,294,892 | ) | (34,466,126 | ) | ||||
Total liabilities and stockholders' equity | 3,936,345 | 6,587,063 | ||||||
Total stockholders' equity | $ | 19,928,577 | $ | 23,420,202 |
Consolidated Statements of Operations (unaudited) | ||||||||
For the Three | For the Three | |||||||
Months Ended | Months Ended | |||||||
2023 | 2022 | |||||||
Revenue | $ | 16,995,200 | $ | 15,643,111 | ||||
Cost of goods sold | 12,908,689 | 11,917,179 | ||||||
Gross margin | 4,086,511 | 3,725,932 | ||||||
Selling, general and administrative expenses | 4,799,086 | 5,172,426 | ||||||
Separation costs – executive officers | 1,945,650 | - | ||||||
Total operating expenses | 6,744,736 | 5,172,426 | ||||||
Operating loss | (2,658,225 | ) | (1,446,494 | ) | ||||
Other income (expense:) | ||||||||
Gain on interest rate swap | - | 294,000 | ||||||
Other leasing income | 1,900 | 5,090 | ||||||
Interest expense, net | (172,441 | ) | (82,973 | ) | ||||
Total other income (expense) | (170,541 | ) | 216,117 | |||||
Net loss before taxes | (2,828,766 | ) | (1,230,377 | ) | ||||
Income tax expense | - | - | ||||||
Net loss | $ | (2,828,766 | ) | $ | (1,230,377 | ) | ||
Net loss per share - basic | $ | (0.06 | ) | $ | (0.03 | ) | ||
Net loss per share - diluted | $ | (0.06 | ) | $ | (0.03 | ) | ||
Weighted average shares outstanding - basic | 48,462,234 | 46,256,160 | ||||||
Weighted average shares outstanding - diluted | 48,462,234 | 46,256,160 |
Consolidated Statements of Cash Flows | ||||||||
For the Three | For the Three | |||||||
Months Ended | Months Ended | |||||||
2023 | 2022 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (2,828,766 | ) | $ | (1,230,377 | ) | ||
Adjustments to reconcile net loss to net cash used by operating activities: | ||||||||
Depreciation and amortization | 145,387 | 138,361 | ||||||
Amortization of right to use asset | 16,314 | 19,691 | ||||||
Amortization of prepaid loan fees | - | 3,088 | ||||||
Stock based compensation | 178,048 | 152,726 | ||||||
Provision (recoveries) for doubtful accounts | 4,666 | (1,115 | ) | |||||
Changes in assets and liabilities: | ||||||||
Accounts receivable, net | 135,020 | (164,124 | ) | |||||
Inventory and other current assets, net | (51,038 | ) | (175,367 | ) | ||||
Accounts payable and accrued liabilities | (2,056,459 | ) | (1,216,020 | ) | ||||
Accrued separation costs – related parties | 1,600,795 | - | ||||||
Deferred revenue | (319,365 | ) | (380,462 | ) | ||||
Operating lease liability | (16,314 | ) | (19,691 | ) | ||||
Net cash used in operating activities | (3,191,712 | ) | (2,873,290 | ) | ||||
Cash flows from investing activities: | ||||||||
Acquisition of property and equipment | (7,995 | ) | (4,760 | ) | ||||
Net cash used in investing activities | (7,995 | ) | (4,760 | ) | ||||
Cash flows from financing activities: | ||||||||
Principal payments on debt | (2,757 | ) | (92,816 | ) | ||||
Principal payments financing leases | (46,807 | ) | (40,637 | ) | ||||
Net cash (used in) financing activities | (49,564 | ) | (133,453 | ) | ||||
Decrease in cash and cash equivalents | (3,249,271 | ) | (3,011,503 | ) | ||||
Cash and cash equivalents at beginning of period | 4,899,398 | 6,122,671 | ||||||
Cash and cash equivalents at end of period | $ | 1,650,127 | $ | 3,111,168 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 174,410 | $ | 84,961 | ||||
Taxes | $ | - | $ | - | ||||
Non-cash investing and financing activities: | ||||||||
(Decrease) Increase in right to use assets & liabilities | $ | - | $ | (13,216 | ) | |||
Finance lease for fixed assets | $ | - | $ | 42,500 |
Reconciliation of GAAP to Non-GAAP Measures Adjusted Net Income Calculations (unaudited, in thousands, except share and per share amounts) | |||||||
Three Months Ended (unaudited) | |||||||
2023 | 2022 | ||||||
Adjusted Net Income and EPS (1) | |||||||
Revenue | $ | 16,995,200 | $ | 15,643,111 | |||
Net Income (Loss) | (2,828,766 | ) | (1,230,377 | ) | |||
Separation costs – executive officers | 1,945,650 | - | |||||
Amortization of intangible assets (2) | 10,331 | 10,231 | |||||
One-time gain | - | (294,000 | ) | ||||
Stock related expenses (3) | 178,048 | 152,726 | |||||
Adjusted Net Income (Loss) | $ | (694,737 | ) | $ | (1,361,420 | ) | |
Weighted Avg. Shares Outstanding (4) | 48,462,234 | 46,256,160 | |||||
Adjusted EPS | $ | (0.014 | ) | $ | (0.029 | ) |
(1) | Adjusted Net Income 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 share count |
Source:
2023 GlobeNewswire, Inc., source