- Fourth quarter total revenue up 14.5% year-over-year to a quarterly record of
$23.9 million - Continued focus on profitability produces fourth quarter net income of
$1.1 million or$0.02 per diluted share - Fourth-quarter operating cash flow of
$2.2 million
“Our record 2022 fourth-quarter results completed a strong year of total revenue growth and significant improvements in profitability and operating cash flow. Throughout the year we focused on supporting our professional and home chef customers as the industry navigated unprecedented logistics, supply chain, and inflationary challenges. Total revenues grew 28.8% to an annual record of
“We are committed to helping our vendors and customers navigate a more uncertain economic environment by continuing to provide a customer friendly marketplace that connects the world’s best artisan food makers with top professional chefs and passionate home chefs nationwide. As my tenure as CEO begins, I am focused on engaging with our customers, vendors, team members, and partners across the country to create a multi-year strategic growth plan that leverages IVFH’s foodservice and eCommerce assets. IVFH has a compelling platform and value proposition. I am excited by the opportunities to take the Company to the next level and create value for our shareholders,” concluded
Financial Results
Revenues in the 2022 fourth quarter increased 14.5% to a fourth-quarter record of
The following tables sets forth IVFH’s revenue by business category for the three and twelve months ended
Three Months Ended | ||||||||||||||
% of Net Sales | % of Net Sales | % Change | ||||||||||||
Specialty Foodservice | $ | 17,941,000 | 75 | % | $ | 11,709,000 | 56 | % | 53 | % | ||||
E-Commerce | 5,355,000 | 23 | % | 8,601,000 | 41 | % | -38 | % | ||||||
National Brand Management | 298,000 | 1 | % | 285,000 | 2 | % | 5 | % | ||||||
Warehouse and Logistics Services | 283,000 | 1 | % | 255,000 | 1 | % | 11 | % | ||||||
Total IVFH | $ | 23,877,000 | 100 | % | $ | 20,850,000 | 100 | % | 15 | % |
Year Ended Months Ended | ||||||||||||||
% of Net Sales | % of Net Sales | % Change | ||||||||||||
Specialty Foodservice | $ | 64,013,000 | 80 | % | $ | 40,758,000 | 66 | % | 57 | % | ||||
E-Commerce | 13,992,000 | 17 | % | 19,518,000 | 31 | % | -28 | % | ||||||
National Brand Management | 1,171,000 | 2 | % | 1,037,000 | 2 | % | 13 | % | ||||||
Warehouse and Logistic Services | 927,000 | 1 | % | 899,000 | 1 | % | 3 | % | ||||||
Total IVFH | $ | 80,103,000 | 100 | % | $ | 62,212,000 | 100 | % | 29 | % |
For the 2022 fourth quarter, gross margin was 25.1%, compared to 29.1% for the same period last year. The decline in gross margin was primarily due to changes in revenue mix and higher year-over-year fuel, shipping, and logistics costs. For the 2022 full year, gross margin was 23.3%, compared to 27.2% last year.
For the 2022 fourth quarter, selling, general, and administrative (SG&A) expenses were
For the 2022 fourth quarter, operating income as a percentage of sales improved to 5.4% from 0.2% for the same period last year. This improvement was a result of higher sales and a
The Company recorded GAAP net income for the 2022 fourth quarter of
The Company generated
Adjusted net income a non-GAAP metric (see tables below) for the 2022 fourth 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)
December 31, | December 31, | |||||||
2022 | 2021 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 4,899,398 | $ | 6,122,671 | ||||
Accounts receivable, net | 4,969,395 | 3,256,764 | ||||||
Inventory, net | 3,053,852 | 3,109,984 | ||||||
Other current assets | 289,432 | 314,107 | ||||||
Total current assets | 13,212,077 | 12,803,526 | ||||||
Property and equipment, net | 7,921,561 | 8,186,227 | ||||||
Investments | - | 286,725 | ||||||
Right of use assets, operating leases, net | 152,425 | 232,381 | ||||||
Right of use assets, finance leases, net | 570,323 | 669,039 | ||||||
Other amortizable intangible assets, net | 30,994 | 72,218 | ||||||
Tradenames and other unamortizable intangible assets | 1,532,822 | 1,532,822 | ||||||
Total assets | $ | 23,420,202 | $ | 23,782,938 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 6,853,253 | $ | 5,702,905 | ||||
Accrued interest, current portion | 18,104 | 29,349 | ||||||
Deferred revenue | 1,558,155 | 1,631,406 | ||||||
Line of Credit | 2,014,333 | 2,000,000 | ||||||
Notes payable - current portion, net of discount | 5,711,800 | 412,961 | ||||||
Lease liability - operating leases, current | 64,987 | 74,088 | ||||||
Lease liability - finance leases, current | 191,977 | 159,823 | ||||||
Contingent liability - current portion | - | 187,000 | ||||||
Total current liabilities | 16,412,609 | 10,197,532 | ||||||
Lease liability - operating leases, non-current | 87,438 | 158,293 | ||||||
Lease liability - finance leases, non-current | 333,092 | 499,240 | ||||||
Contingent liability - long-term | - | 108,600 | ||||||
Note payable - long term portion, net | - | 5,409,172 | ||||||
Total liabilities | 16,833,139 | 16,372,837 | ||||||
Commitments & Contingencies | ||||||||
Stockholders' equity | ||||||||
Common stock: | 5,088 | 4,885 | ||||||
Additional paid-in capital | 42,189,471 | 41,662,710 | ||||||
(1,141,370 | ) | (1,141,370 | ) | |||||
Accumulated deficit | (34,466,126 | ) | (33,116,124 | ) | ||||
Total stockholders' equity | 6,587,063 | 7,410,101 | ||||||
Total liabilities and stockholders' equity | $ | 23,420,202 | $ | 23,782,938 |
Consolidated Statements of Operations
(unaudited)
For the | For the | |||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2022 | 2021 | |||||||
Revenue | $ | 80,102,964 | $ | 62,212,148 | ||||
Cost of goods sold | 61,414,765 | 45,261,401 | ||||||
Gross margin | 18,688,199 | 16,950,747 | ||||||
Selling, general and administrative expenses | 19,725,593 | 20,540,229 | ||||||
Total operating expenses | 19,725,593 | 20,540,229 | ||||||
Operating loss | (1,037,394 | ) | (3,589,482 | ) | ||||
Other income (expense:) | ||||||||
Impairment of investment | (286,725 | ) | (209,850 | ) | ||||
Other income | 294,000 | - | ||||||
Gain on forgiveness of debt | - | 3,425,015 | ||||||
Gain on contingent liability | 295,600 | - | ||||||
Loss on extinguishment of debt | (40,556 | ) | - | |||||
Other leasing income | 11,226 | 10,840 | ||||||
Interest expense, net | (586,153 | ) | (352,854 | ) | ||||
Total other income (expense) | (312,608 | ) | 2,873,151 | |||||
Net loss before taxes | (1,350,002 | ) | (716,331 | ) | ||||
Income tax expense | - | - | ||||||
Net loss | $ | (1,350,002 | ) | $ | (716,331 | ) | ||
Net loss per share - basic | $ | (0.03 | ) | $ | (0.02 | ) | ||
Net loss per share - diluted | $ | (0.03 | ) | $ | (0.02 | ) | ||
Weighted average shares outstanding - basic | 47,129,511 | 39,448,041 | ||||||
Weighted average shares outstanding - diluted | 47,129,511 | 39,448,041 |
Consolidated Statements of Cash Flows
For the | For the | |||||||
Year Ended | Year Ended | |||||||
2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (1,350,002 | ) | $ | (716,331 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Gain on forgiveness of debt | - | (3,425,015 | ) | |||||
Gain on contingent liabilities | (295,600 | ) | - | |||||
Impairment of investment | 286,725 | 209,850 | ||||||
Depreciation and amortization | 562,072 | 526,854 | ||||||
Amortization of right of use asset | 66,740 | 102,715 | ||||||
Amortization of prepaid loan fees | 115,760 | 12,525 | ||||||
Stock based compensation | 576,964 | 668,251 | ||||||
Loss on extinguishment of debt | 40,556 | - | ||||||
Provision (recoveries) for doubtful accounts | (1,915 | ) | 31,756 | |||||
Changes in assets and liabilities: | ||||||||
Accounts receivable, net | (1,710,716 | ) | (930,595 | ) | ||||
Inventory and other current assets, net | 80,807 | 604,890 | ||||||
Accounts payable and accrued liabilities | 1,169,514 | 650,516 | ||||||
Deferred revenue | (73,251 | ) | (1,286,270 | ) | ||||
Contingent liabilities | - | (8,000 | ) | |||||
Operating lease liability | (66,740 | ) | (102,715 | ) | ||||
Net cash used in operating activities | (599,086 | ) | (3,661,569 | ) | ||||
Cash flows from investing activities: | ||||||||
Acquisition of property and equipment | (114,966 | ) | (24,511 | ) | ||||
Net cash used in investing activities | (114,966 | ) | (24,511 | ) | ||||
Cash flows from financing activities: | ||||||||
Payment of offering costs for stock previously issued | (50,000 | ) | - | |||||
Proceeds from sale of common stock, net of costs | 3,580,372 | |||||||
Proceeds from Payroll Protection Plan Loan | - | 1,748,414 | ||||||
Principal payments on debt | (172,422 | ) | (433,087 | ) | ||||
Principal payments financing leases | (176,494 | ) | (146,963 | ) | ||||
Cost of debt financing | (110,305 | ) | - | |||||
Net cash provided by (used in) financing activities | (509,221 | ) | 4,748,736 | |||||
Increase (decrease) in cash and cash equivalents | (1,223,273 | ) | 1,062,656 | |||||
Cash and cash equivalents at beginning of period | 6,122,671 | 5,060,015 | ||||||
Cash and cash equivalents at end of period | $ | 4,899,398 | $ | 6,122,671 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 461,563 | $ | 298,481 | ||||
Taxes | $ | - | $ | - | ||||
Non-cash investing and financing activities: | ||||||||
(Decrease) Increase in right to use assets & liabilities | $ | (13,216 | ) | $ | 88,359 | |||
Finance lease for fixed assets | $ | 42,500 | $ | 21,885 | ||||
Debt to | $ | 7,686,481 | $ | - | ||||
Reclassification of accounts receivable to other assets | $ | - | $ | 22,380 |
Three Months Ended (unaudited) | Twelve Months Ended (unaudited) | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Adjusted Net Income and EPS (1) | |||||||||||||||
Revenue | $ | 23,876,715 | $ | 20,849,332 | $ | 80,102,964 | $ | 62,212,148 | |||||||
Net Income (Loss) | 1,094,415 | 1,698,038 | (1,350,002 | ) | (716,331 | ) | |||||||||
Amortization of intangible assets (2) | 10,331 | 302 | 41,224 | 8,912 | |||||||||||
One-time charges (3) | 327,281 | - | 919,799 | 209,850 | |||||||||||
One-time gain | - | (1,759,197 | ) | (294,000 | ) | (1,665,818 | ) | ||||||||
Stock related expenses (4) | 56,746 | 192,119 | 576,964 | 668,251 | |||||||||||
Adjusted Net Income (Loss) | $ | 1,488,773 | $ | 131,262 | $ | (106,015 | ) | $ | (1,495,136 | ) | |||||
Weighted Avg. Shares Outstanding Diluted (5) | 47,129,511 | 39,448,041 | 47,129,511 | 39,448,041 | |||||||||||
Adjusted Fully Diluted EPS | $ | 0.032 | $ | 0.003 | $ | (0.002 | ) | $ | (0.038 | ) | |||||
(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) | Charges that are non-recurring or one-time items include: inventory adjustment expenses of |
(4) | Includes stock and options-based compensation and expenses |
(5) | Full Year GAAP weighted fully diluted share count |
Source:
2023 GlobeNewswire, Inc., source