SOURCE: Innovative Food Holdings, Inc.

May 16, 2011 10:37 ET

Innovative Food Holdings Reports Record First Quarter Revenues, Record First Quarter Operating Cash Flow

20th Straight Month of Month Over Month Record Revenues

NAPLES, FL--(Marketwire - May 16, 2011) - Innovative Food Holdings, Inc. (OTCBB: IVFH) (OTCQB: IVFH), a marketer and purveyor of over 4,000 high quality gourmet food products throughout the United States to professional chefs and to the gourmet consumer market, announced today first quarter results.

Net revenues were $2.47 million for the quarter ended March 31, 2011, an approximate 7 % increase compared to net revenues of $2.30 million for the first quarter of 2010.

The company reported positive operating cash flow of $169,969 in the first quarter and ended the quarter with over $655,000 in cash.

Commenting on the results, Innovative Food Holdings' CEO, Sam Klepfish, stated, "We are pleased with the first quarter results, which historically is our slowest quarter and we continue to see increased acceptance of our offerings in the market. We made several investments in personnel, new programs and in other areas intended to drive additional sales growth and we currently believe that we are well positioned for 2011 sales growth beyond the first quarter's sales growth rate.

Mr. Klepfish continued, "In addition, for the last several months we have been in negotiations with noteholders with respect to reducing our debt as part of a strategy to streamline and improve our capital structure. We believe we have made progress in this area and we intend to update our shareholders in the near future regarding the details of those efforts.

At the close of the first quarter of 2011 the Company had the following profile:

  • Managing the premier gourmet food program in the United States with one of the leading Foodservice providers in the United States.
  • High quality demographic Foodservice customer base of over 16,000 professional chefs in some of the finest restaurants hotels and other Foodservice establishments across the United States.
  • Customer satisfaction rate amongst Professional Chefs of over 99%.
  • An ability to leverage its market position and market reputation to introduce new private label products.
  • A platform which enabled the retail and wholesale, purchase, sale and delivery of over 60,000 packages in 2010.
  • A platform which can handle significant additional sales growth at low incremental cost.
  • Retail Selling relationships with, Nieman Marcus, Gigachef and others.
  • 2010 Overall Sales of close to $10 million with strong operating profits and strong operating cash flow.
  • A wholly owned retail subsidiary (For The Gourmet Inc.) which lists over 1,800 of the finest quality gourmet products, showed a 272% increase in packages shipped in 2010, grew revenues by approximately 290% in 2010 and experienced a high customer satisfaction level of over 98%.
  • Approximately $655,000 cash in the bank at the end of the first quarter of 2011.
  • Current market cap of approximately $1.4 million.

The Company believes that its shares are undervalued and given the opportunity the Company intends to purchase shares in the open market during 2011.

About Innovative Food Holdings

Innovative Food Holdings, Inc., through its wholly owned subsidiaries, is in the business of marketing and selling high quality gourmet food and products.

Food Innovations, Inc., in partnership with one of the largest Foodservice distributors in the Unites States, provides over 4,000 of the highest quality gourmet food products to professional chefs throughout the United States. To learn more, visit the Food Innovations website at Food Innovations is a wholly owned subsidiary of Innovative Food Holdings, Inc.

About For The Gourmet, Inc.
Through its website, and through additional sales channels, For The Gourmet Inc. provides the highest quality gourmet food products to the retail consumer market under the For The Gourmet line at and to the professional chef market under the For The Gourmet Pro line. To learn more visit the For The Gourmet website at For The Gourmet Inc. is a wholly owned subsidiary of Innovative Food Holdings, Inc. (OTCQB: IVFH)

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, anticipate, believe, intend, plan, might, potentially or expect. The Company does not intend to update these forward-looking statements.

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