Innovative Food Holdings, Inc. Reports Financial Results for Second Quarter and First Half of 2020
COVID-19 Crisis Accelerates Ongoing Digital and Direct-to-Consumer Transformation
Second Quarter e-commerce Revenue Increased Over 317% to a Record $7.5 Million
Second Quarter Active and Unique e-commerce Customers Increased Over 266% Compared to the Prior Year PeriodBONITA SPRINGS, Fla., Aug. 18, 2020 (GLOBE NEWSWIRE) — Innovative Food Holdings, Inc. (OTCQB: IVFH), (“IVFH” or “the Company”), an interconnected data-driven platform of specialty food companies that provide chefs and consumers direct access to the highest quality unique specialty food products as well as gift boxes and other curated products across the U.S., today reported its financial results for the second quarter and first half of 2020.“The COVID-19 pandemic has accelerated our ongoing transformation to a digitally-enabled, e-commerce-centric, direct-to-consumer and direct-to-chef company as second quarter e-commerce sales increased over 317% to a record $7.5 million and unique e-commerce customers for the quarter grew over 266% to more than 79,500 unique customers. I am extremely proud of our team’s response to the significant and rapid surge in e-commerce demand during the 2020 second quarter, and I am thankful that IVFH was able to provide customers across the country with essential food products in a safe and timely manner.” “As we head into the second half of the year and the upcoming holiday season, momentum across our direct and third-party e-commerce channels is accelerating. Our enhanced digital marketing strategy is producing favorable results, across all e-commerce channels including particularly strong record sales growth at Mouth.com during the second quarter. We believe that as positive e-commerce trends continue, there are significant specialty food and specialty grocery e-commerce opportunities for IVFH. In addition, as we move towards the coming launch of the new igourmet.com website, we are particularly excited about additional growth opportunities related to the execution of our expanded digital marketing strategies, which will leverage the expertise, synergies, and success achieved by the team at Mouth.com. Furthermore, during the third quarter, we plan on migrating our Pennsylvania operation to a new warehouse, which is expected to improve efficiencies and enhance logistics, packaging, and automation capabilities. As a result, we are targeting greater overall and per unit efficiencies and productivity, and higher profitability of e-commerce as we move towards the anticipated increased demand of the fourth quarter.”For the 2020 second quarter, IVFH had over 79,500 active and unique e-commerce customers, which is an increase of approximately 267% from the same period last year and is up nearly 100% from the 2020 first quarter.
The following table sets forth IVFH’s revenue by business category for the three and six months ended June 30, 2020 and June 30, 2019 (unaudited):
For the 2020 second quarter, selling and administrative (SG&A) expenses were $4.9 million, compared to $4.0 million for the same period last year, and $4.6 million for the 2020 first quarter. The $0.9 million, or approximately 21.8% year-over-year increase, which included costs associated with COVID-19, was primarily due to a $0.5 million increase in digital marketing expenses, $0.4 million of higher payroll and related costs including higher fulfillment costs as we focused on providing food to our customers, increases in professional and legal fees of $0.2 million, and $0.2 million of higher costs associated with banking and credit card fees, taxes, and insurance. For the 2020 first half, SG&A expenses were $9.5 million, compared to $7.8 million in the prior year period. Adjusted net income for the 2020 second quarter was a loss of $(1.5 million), or $(0.043) per share, compared to adjusted net income of $0.4 million, or $0.011 per diluted share, for the same period last year. For the six months of 2020, adjusted net income was a loss of $(2.6 million), or $(0.074) per share, compared to adjusted net income of $0.9 million, or $0.025 per diluted share, for the same period last year.
Cash EBITDA a non-GAAP metric (see tables below), for the 2020 second quarter was a loss of $(1.3 million), compared to Cash EBITDA of $0.5 million in the prior year quarter. For the 2020 first six months, Cash EBITDA was a loss of $(2.2 million), compared to EBITDA of $1.1 million for the same period a year ago.About Innovative Food Holdings, Inc.
Innovative Food Holdings, Inc. is an interconnected data driven platform of small, specialty food companies serving business and consumer customers. The platform offers efficient, cost effective, and transparent sourcing of over 7,000 specialty food products including proprietary branded products. Sales channels on the platform include specialty foodservice channels and data driven DTC e-commerce channels including leading specialty food direct-to-consumer e-commerce websites www.igourmet.com and www.mouth.com as well as a strong specialty food omnichannel offering via www.amazon.com, www.ebay.com and www.walmart.com.Forward-Looking Statements
This release contains certain forward-looking statements and information relating to Innovative Food Holdings, Inc. (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. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as “should,” “could,” “will,” “anticipate,” “believe,” “intend,” “plan,” “might,” “potentially,” “targeting” or “expect.” Additional factors that could also cause actual results to differ materially relate to the global COVID-19 crisis. The Company does not intend to update these forward-looking statements. The content of the websites referenced above are not incorporated herein.Innovative Food Holdings, Inc.
Consolidated Balance Sheets
(unaudited)Innovative Food Holdings, Inc.
Consolidated Statements of Operations
(unaudited)Innovative Food Holdings, Inc.
Consolidated Statements of Cash Flows
(unaudited)
Second Quarter e-commerce Revenue Increased Over 317% to a Record $7.5 Million
Second Quarter Active and Unique e-commerce Customers Increased Over 266% Compared to the Prior Year PeriodBONITA SPRINGS, Fla., Aug. 18, 2020 (GLOBE NEWSWIRE) — Innovative Food Holdings, Inc. (OTCQB: IVFH), (“IVFH” or “the Company”), an interconnected data-driven platform of specialty food companies that provide chefs and consumers direct access to the highest quality unique specialty food products as well as gift boxes and other curated products across the U.S., today reported its financial results for the second quarter and first half of 2020.“The COVID-19 pandemic has accelerated our ongoing transformation to a digitally-enabled, e-commerce-centric, direct-to-consumer and direct-to-chef company as second quarter e-commerce sales increased over 317% to a record $7.5 million and unique e-commerce customers for the quarter grew over 266% to more than 79,500 unique customers. I am extremely proud of our team’s response to the significant and rapid surge in e-commerce demand during the 2020 second quarter, and I am thankful that IVFH was able to provide customers across the country with essential food products in a safe and timely manner.” “As we head into the second half of the year and the upcoming holiday season, momentum across our direct and third-party e-commerce channels is accelerating. Our enhanced digital marketing strategy is producing favorable results, across all e-commerce channels including particularly strong record sales growth at Mouth.com during the second quarter. We believe that as positive e-commerce trends continue, there are significant specialty food and specialty grocery e-commerce opportunities for IVFH. In addition, as we move towards the coming launch of the new igourmet.com website, we are particularly excited about additional growth opportunities related to the execution of our expanded digital marketing strategies, which will leverage the expertise, synergies, and success achieved by the team at Mouth.com. Furthermore, during the third quarter, we plan on migrating our Pennsylvania operation to a new warehouse, which is expected to improve efficiencies and enhance logistics, packaging, and automation capabilities. As a result, we are targeting greater overall and per unit efficiencies and productivity, and higher profitability of e-commerce as we move towards the anticipated increased demand of the fourth quarter.”For the 2020 second quarter, IVFH had over 79,500 active and unique e-commerce customers, which is an increase of approximately 267% from the same period last year and is up nearly 100% from the 2020 first quarter.
The following table sets forth IVFH’s revenue by business category for the three and six months ended June 30, 2020 and June 30, 2019 (unaudited):
For the 2020 second quarter, selling and administrative (SG&A) expenses were $4.9 million, compared to $4.0 million for the same period last year, and $4.6 million for the 2020 first quarter. The $0.9 million, or approximately 21.8% year-over-year increase, which included costs associated with COVID-19, was primarily due to a $0.5 million increase in digital marketing expenses, $0.4 million of higher payroll and related costs including higher fulfillment costs as we focused on providing food to our customers, increases in professional and legal fees of $0.2 million, and $0.2 million of higher costs associated with banking and credit card fees, taxes, and insurance. For the 2020 first half, SG&A expenses were $9.5 million, compared to $7.8 million in the prior year period. Adjusted net income for the 2020 second quarter was a loss of $(1.5 million), or $(0.043) per share, compared to adjusted net income of $0.4 million, or $0.011 per diluted share, for the same period last year. For the six months of 2020, adjusted net income was a loss of $(2.6 million), or $(0.074) per share, compared to adjusted net income of $0.9 million, or $0.025 per diluted share, for the same period last year.
Cash EBITDA a non-GAAP metric (see tables below), for the 2020 second quarter was a loss of $(1.3 million), compared to Cash EBITDA of $0.5 million in the prior year quarter. For the 2020 first six months, Cash EBITDA was a loss of $(2.2 million), compared to EBITDA of $1.1 million for the same period a year ago.About Innovative Food Holdings, Inc.
Innovative Food Holdings, Inc. is an interconnected data driven platform of small, specialty food companies serving business and consumer customers. The platform offers efficient, cost effective, and transparent sourcing of over 7,000 specialty food products including proprietary branded products. Sales channels on the platform include specialty foodservice channels and data driven DTC e-commerce channels including leading specialty food direct-to-consumer e-commerce websites www.igourmet.com and www.mouth.com as well as a strong specialty food omnichannel offering via www.amazon.com, www.ebay.com and www.walmart.com.Forward-Looking Statements
This release contains certain forward-looking statements and information relating to Innovative Food Holdings, Inc. (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. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as “should,” “could,” “will,” “anticipate,” “believe,” “intend,” “plan,” “might,” “potentially,” “targeting” or “expect.” Additional factors that could also cause actual results to differ materially relate to the global COVID-19 crisis. The Company does not intend to update these forward-looking statements. The content of the websites referenced above are not incorporated herein.Innovative Food Holdings, Inc.
Consolidated Balance Sheets
(unaudited)Innovative Food Holdings, Inc.
Consolidated Statements of Operations
(unaudited)Innovative Food Holdings, Inc.
Consolidated Statements of Cash Flows
(unaudited)
