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The Inventure Group Conference Call – “Diversity is Our Friend” (NASDAQ: SNAK)

|Includes: Inventure Foods, Inc. (SNAK)

Yesterday at the market close, I was able to listen in on SNAK’s first quarter conference call and participate in the question and answer period. To review the financials, Inventure group is experiencing their 9th consecutive quarter of year over year growth. Their Rader Farms net revenue increased to $12 million or 12.5% and the snack division increased 1.8% to $19.3 million. Within the snack division, revenue from the Boulder Canyon Brand increased 36% but was offset slightly by decreases in the TGIF and Burger King chips. Consolidated revenue totaled at $31.4 million. Earnings per share were $.07 or $1.2 million, an increase of 40%. 

Some contributions to the slight pull back in the Snack division can be attributed to weaknesses in convenience store sales and vending machines.

As the title says, Inventure’s diverse revenue stream is what has kept them growing quarter after quarter through the economic headwinds and into today. The company’s healthy/natural brands account for 49% of revenue and have experienced 15% growth versus last year’s quarter. Inventure continues to diversify its healthy/natural brand revenue stream with a recently signed strategic alliance with Jamba Juice Smoothie. 
Jamba has licensed its brand to SNAK for a Jamba Juice at home smoothie kit, sold in food retail locations in exchange for a single digit royalty. The initial product launch will take place in select West Coast markets. Jamba is working very closely with SNAK and has collaborated with the company to ensure the perfect recreation of the product. Terry McDaniel, Inventure’s CEO, says the head chef at JMBA attests to the taste consistency between the at home kit and a smoothie from a Jamba Juice retail location. 
The relationship between these two companies is a good alignment, especially when considering SNAK’s growing healthy/natural line combined with Jamba Juice’s healthy living brand image. 

Although no guidance was given for the upcoming quarter, an analyst asked about the seasonality of SNAK’s sales in a quarter. Although seasonality minimal, Q2 and Q3 tend to be the companies two strongest quarters with Q4 being the least predictable. Further growth may be in the future as Inventure Group’s strongest six months approach and new product introductions look to keep this growth story going strong. 
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