SOURCE: Innovative Food Holdings, Inc.

November 12, 2010 13:20 ET

Innovative Food Holdings Reports Record Quarterly Revenues and Record Quarterly Cash Flow; Best in Any Quarter in Company History

Files for Trademark on Line of Private Label Molecular Gastronomy Products

NAPLES, FL--(Marketwire - November 12, 2010) - Innovative Food Holdings, Inc. (OTCBB: IVFH), a marketer and purveyor of the finest premium gourmet food products to professional chefs throughout the United States and to the premium gourmet consumer market, announced today record revenues for the third quarter of 2010.

Third Quarter and Nine month Results:

Revenues for the first nine months of 2010 increased to $6,958,099 which is an increase of $1,698,185, or over 32%, compared to revenues of $5,259,914 for the first nine months of 2009.

Revenues for the third quarter of 2010 increased to $2,361,192 which is an increase of $469,876, or over 25%, compared to revenues of $1,891,316 in the third quarter of 2009.

Nine months operating cash flow was $297,169 which was a significant improvement of over $298,175 compared to negative operating cash flow of ($1,006) in the first nine months of 2009.

Operating Cash flow for the third quarter of 2010 was $116,989 which was a significant improvement of $131,155 compared to ($14,166) negative operating cash flow in the same period of 2009. Finally, the company's quarter end cash position improved strongly to $378,480.

Operating Profit includes expenses associated with "change in the fair value of options liability," which is a non-cash stock option revaluation expense, resulting from the company's higher stock price and under GAAP rules is included in SG&A expenses. This can result in either a non-cash gain or expense added to the company's operating results and is dependent on a valuation associated with the company's stock price at the close of the quarter. In addition, SG&A expenses also include other non-cash stock and options expenses relating to employees, officers and directors.

Operating profit without the non-cash options and stock related expense for the initial nine months of 2010 was $165,519 (EBITOV) (without the non-cash options and stock charges) which is an improvement of over 41% compared to the operating profit of $117,500 (EBITOV) in the first nine months of 2009.

Operating profit without the non-cash options and stock related expense for the 3rd quarter of 2010 was $37,238 (EBITOV) compared to the operating profit of $61,381 (EBITOV and also adjusted to reflect accounting related non cash gains specific to the third quarter of 2009). The decline is mainly related to the strategy that the company took in the third quarter of focusing on aggressive product pricing designed to increase market share, and to increased expenses associated with investments in the expansion of the company's retail program and expenses associated with investments in launching and growing the Artistre brand of molecular gastronomy products as the company worked to position itself for the historically busy 4th quarter.

Innovative Food Holdings is also pleased to announce that, within the near term, the company expects to formally launch additional sales channels that it has been beta testing within the retail space and that the company continues to be in discussions regarding several additional sales channel and content related partnership opportunities.

In addition, during the third quarter, sales of our exclusive private label of Molecular Gastronomy products continued to be strong, with increased interest both retail, professional chefs and from the molecular gastronomy community in general. Finally, to further support the growth of the Artistre line we have applied for a trademark for our Artistre line of products, which is an extension of Innovative Food Holdings' strategy of leveraging its position in the marketplace to create multiple value opportunities for its shareholders.

Financial and Operating Highlights include:

  • Best quarterly Operating Cash Flow in company's history

  • Best quarterly revenues in company's history

  • Significantly Improved cash position

  • Approximately 32% year over year nine month sales growth

  • Approximately 25% year over year quarterly sales growth

  • Application for trademark for our exclusive private label Artistre brand of molecular gastronomy products

  • Launch of new Artistre line of the company's popular Molecular Gastronomy Experimental kits targeted towards the holiday season

  • Beta launch of new retail sales channels

The CEO of Innovative Food Holdings, Inc., Mr. Sam Klepfish, said, "We are very satisfied with our third quarter results. During the third quarter we followed a strategy of aggressively focusing on expanding market share and our end user customer base through both increased marketing and through lower costing to customers and in building our retail and private label program. While these strategies had the short term effect of lowering margins and increasing expenses, we believe this leaves us very well positioned for the historically busy 4th quarter. We are also pleased to announce that in the second half of October, with the historically busiest two months of the year still ahead of us, we had already surpassed sales for the entire 2009.

"In addition, operating cash flow continues to be exceptionally strong and we ended the quarter with over $378,480 in cash. We view these results as indicative of the strong position we continue to build within the gourmet food industry."

Mr. Klepfish continued, "Reporting best ever revenues for any quarter in the company's history is especially satisfying inasmuch as the record occurred in the third quarter, yet it exceeded revenues from our previous record set in 2009 which was set in the historically busy 4th quarter. We remain very excited about the 4th quarter's opportunities and we believe that we are very well positioned in all our sales channels for the historically busy November-December holiday season."

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.

Food Innovations, Inc.

Food Innovations, Inc., in partnership with one of the largest Foodservice distributors in the Unites States, provides over 3,800 of the highest quality gourmet food products to professional chefs throughout the United States. To learn more, visit the Food Innovations website at www.foodinno.com. Food Innovations is a wholly owned subsidiary of Innovative Food Holdings, Inc.

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 www.forthegourmet.com and to the professional chef market under the For The Gourmet Pro line. To learn more, visit the For The Gourmet website at http://www.forthegourmet.com/. For The Gourmet, Inc. is a wholly owned subsidiary of Innovative Food Holdings, Inc.

This release contains certain forward-looking statements and information relating to Innovative Food Holdings, Inc. (the "Company") that are based on the 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, potential, appear or expect. The Company does not intend to update these forward-looking statements.

Contact Information