Innovative Food Holdings Reports Second Quarter 2014 Financial Results

BONITA SPRINGS, Fla., Aug. 14, 2014 /PRNewswire/ -- Innovative Food Holdings, Inc. (OTCQB: IVFH), a leading nationwide provider of specialty foods, healthcare foods, gluten free foods, and direct from source artisanal foods, to the professional foodservice market, today announced financial results for the second quarter and six months ended June 30, 2014. The Company will hold a conference call August 20, 2014 at 5 p.m. ET.

Second Quarter 2014 Financial Highlights Compared to Second Quarter 2013:

• Revenue increased 21% to $6.4 million.
• The quarter ended June 30, 2014 represented the 19th consecutive quarter of year-over-year revenue growth.
• Operating income grew 143% to approximately $682,000.
• Net income increased to approximately $427,000 compared to $(92,000).
• Adjusted net income (net income excluding non-recurring gains/losses, stock related gains/losses and amortization expenses "adjusted net income") grew by 160% to over $745,000, up from $286,000 in the same period last year.
• GAAP Basic EPS increased to $0.05 per share, up from a loss of $(0.015) per share in the second quarter of 2013.
• Operating cash flow grew 100% to $490,000, up from $244,000 in the year ago period.
• Cash EBITDA (EBITDA without non-recurring gains/losses, stock-related gains/losses, or "Cash EBITDA"), grew over 129% to $787,000, up from $343,000 in 2013.

Year-to-Date 2014 Financial Highlights Compared to Year-to-Date 2013:

• Revenue increased 13% to $12.0 million.
• Operating income grew 74% to $1.1 million.
• Net income increased to approximately $616,000 compared to $ (63,000).
• Adjusted Net Income grew by 78% to $1.3 million, up from $703,000 in the same period last year.
• GAAP Basic EPS increased to $0.08 per share, up from a loss of $(0.01) per share in the first half of 2013.
• Operating Cash flow increased 301% to $681,861, up from $170,000 in the year ago period.
• Cash EBITDA grew 67% to approximately $1.4 million, up from $815,000 in 2013.

Sam Klepfish, CEO of Innovative Food Holdings, commented, "Leveraging the strength of our platform, we delivered strong revenue growth and improved financial metrics across the board, as we capitalized on the operating leverage inherent in our business model. The continued growth in revenue and profits demonstrates the expansion power of our platform and highlights our ability to execute on our business plan. Our performance also reflects continued and growing demand for our solutions, as professional chefs, forward-thinking restaurants and discerning consumers seek the freshest, highest quality specialty foods delivered with unrivaled logistics."

Mr. Klepfish concluded, "In addition to our core foodservice market we continue to focus on platform type of opportunities that can be scaled, can handle incremental growth without extensive infrastructure investments and which solve existing shortfalls in current specialty, artisanal and direct-from-source food distribution systems. We believe the rapidly changing food consumption trends towards high quality, artisanal foods, presents a compelling market opportunity and due to our proven platform, we are confident that Innovative Food Holdings is uniquely positioned to pursue and execute on those opportunities."

Second Quarter 2014 Financial Results

Second quarter 2014 revenue was $6.4 million, up 21% as compared to $5.3 million in the second quarter of 2013. 

Net Income grew to approximately $427,000 in the second quarter of 2014 compared to $(92,000) in the second quarter of 2013. GAAP Basic EPS in the second quarter of 2014 was $.05 per share compared to $(0.015) per share in the second quarter of 2013. Cash EBITDA increased over 129% to $787,000 for the second quarter of 2014 compared to $343,000 in the second quarter last year.

Year-to-Date 2014 Financial Results

For the six months ended June 30, 2014 revenue was $12 million, up 13% as compared to $10.5 million in the first six months of 2013. 

Net Income grew to $616,000 in the first six months of 2014 compared to $(63,000) in the same period of 2013. GAAP basic EPS in the first half of 2014 was $0.08 per share compared to $(0.01) per share in the year ago period. Cash EBITDA increased over 67% to $1.4 million for the first six months of 2014 compared to $815,000 in the first six months of last year.

Operating Cash flow increased 301% to $682,000 for period ended June 30, 2014 compared to the same period a year ago.

The company ended the second quarter with over $2.2 million in cash and with the full availability of its $1 million line of credit with Fifth Third Bank.

Conference call information:

• Date and time: Wed August 20, 2014 at 5 p.m. ET
• Dial-in number: 1-888-438-5491 (domestic) or 1-719-325-2491 (international)
• Call/Conference ID: 7962271
• Replay number: Dial 1-877-870-5176 (domestic) or 1-858-384-5517 (international). Please use passcode 7962271 to access the replay. The replay will be available until August 27, 2014.
• Webcast link: http://public.viavid.com/index.php?id=110633

About Innovative Food Holdings, Inc.

Innovative Food Holdings, Inc. enables, through direct distribution and through an industry leading fully managed specialty food platform, the nationwide, efficient, seamless, transparent and cost effective distribution of high quality direct from source foods, artisanal foods, gluten free, allergen specific foods and other high quality, niche, specialty food products across multiple food distribution channels in the United States.

In the professional foodservice channel, Innovative Food Holding's platform manages the nationwide sales, sourcing and procurement, logistics, customer service and distribution of over 7,000 specialty food products. Many of Innovative Food Holdings' products are used on a daily basis by approximately 40,000 of some of the leading professional chefs across the United States.

In the direct to consumer channel, IVFH offers products directly to consumers, through its website at www.forthegourmet.com. In addition, Innovative Food Holdings' platform offers a comprehensive white label specialty perishable and nonperishable specialty food platform for e-commerce retailers and other retailers which are seeking to offer the nationwide, efficient, seamless, transparent and cost effective availability of direct from source, specialty and artisanal products, directly to consumers.

Forward-Looking Statements

This release contains certain forward-looking statements and information relating to Innovative Food Holdings, Inc. (IVFH) (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 and in our public filings. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as "should," "could," "anticipate," "believe," "intend," "plan," "might," "potentially" or "expect." The Company does not intend to update these forward-looking statements.

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SOURCE Innovative Food Holdings, Inc.