Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 28, 2015 | 4-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | INVENTURE FOODS, INC. | |
Entity Central Index Key | 944508 | |
Document Type | 10-Q | |
Document Period End Date | 28-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -14 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 19,549,796 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $920 | $495 |
Accounts receivable, net of allowance for doubtful accounts of $394 and $106 at March 28, 2015 and December 27, 2014, respectively | 26,128 | 22,420 |
Inventories | 56,724 | 65,216 |
Deferred income tax asset | 1,224 | 1,228 |
Other current assets | 12,671 | 1,220 |
Total current assets | 97,667 | 90,579 |
Property and equipment, net of accumulated depreciation of $41,859 and $41,179 at March 28, 2015 and December 27, 2014, respectively | 55,799 | 55,200 |
Goodwill | 23,286 | 23,286 |
Trademarks and other intangibles, net | 14,965 | 24,543 |
Other assets | 1,506 | 1,702 |
Total assets | 193,223 | 195,310 |
Current liabilities: | ||
Accounts payable | 18,701 | 15,533 |
Accrued liabilities | 23,036 | 12,978 |
Current portion of long-term debt | 7,281 | 7,041 |
Total current liabilities | 49,018 | 35,552 |
Long-term debt, less current portion | 57,296 | 59,218 |
Line of credit | 20,077 | 18,802 |
Deferred income tax liability | 6,874 | 6,869 |
Interest rate swaps | 326 | 349 |
Other liabilities | 2,109 | 2,554 |
Total liabilities | 135,700 | 123,344 |
Commitments and contingencies (Notes 7 and 10) | ||
Stockholders' equity: | ||
Common stock, $.01 par value; 50,000 shares authorized; 19,918 and 19,961 shares issued and outstanding at March 28, 2015 and December 27,2014, respectively | 199 | 200 |
Additional paid-in capital | 33,278 | 33,100 |
Accumulated other comprehensive loss | -119 | -134 |
Retained earnings | 24,636 | 39,271 |
Total stockholders' equity before treasury stock | 57,994 | 72,437 |
Less: treasury stock, at cost: 368 shares at March 28, 2015 and December 27, 2014 | -471 | -471 |
Total stockholders' equity | 57,523 | 71,966 |
Total liabilities and stockholders' equity | $193,223 | $195,310 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Thousands, except Per Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $394 | $106 |
Accumulated depreciation (in dollars) | $41,859 | $40,179 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares issued | 19,918 | 19,961 |
Common stock, shares outstanding | 19,918 | 19,961 |
Treasury stock, shares | 368 | 368 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Net revenues | $77,607 | $67,509 |
Cost of revenues | 81,307 | 55,946 |
Gross profit | -3,700 | 11,563 |
Selling, general and administrative expenses | 9,152 | 8,398 |
Impairment of intangible asset | 9,277 | |
Operating income (loss) | -22,129 | 3,165 |
Interest expense, net | 730 | 670 |
Income (loss) before income tax | -22,859 | 2,495 |
Income tax benefit (expense) | 8,224 | -898 |
Net income (loss) | ($14,635) | $1,597 |
Earnings (loss) per common share: | ||
Basic (in dollars per share) | ($0.75) | $0.08 |
Diluted (in dollars per share) | ($0.75) | $0.08 |
Weighted average number of common shares: | ||
Basic (in shares) | 19,581 | 19,437 |
Diluted (in shares) | 19,581 | 19,924 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net income (loss) | ($14,635) | $1,597 |
Change in fair value of interest rate swaps, net of tax | 15 | 28 |
Comprehensive income (loss) | ($14,620) | $1,625 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Cash flows from operating activities: | ||
Net income (loss) | ($14,635) | $1,597 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 1,701 | 1,616 |
Amortization | 301 | 301 |
Product recall | 15,493 | |
Impairment of intangible asset | 9,277 | |
Provision for (recovery of) bad debts | 55 | -18 |
Deferred income taxes | -8,757 | 227 |
Excess income tax benefit from exercise of stock options | -131 | -214 |
Share-based compensation expense | 357 | 222 |
Loss on disposition of equipment | 5 | 20 |
Change in operating assets and liabilities | ||
Accounts receivable | -3,995 | 1,109 |
Inventories | 3,611 | 1,209 |
Other assets and liabilities | -2,168 | -324 |
Accounts payable and accrued liabilities | 1,755 | 999 |
Net cash provided by operating activities | 2,869 | 6,744 |
Cash flows from investing activities: | ||
Payment for property and equipment | -1,935 | -5,430 |
Net cash used in investing activities | -2,166 | -5,880 |
Cash flows from financing activities: | ||
Net borrowings on line of credit | 1,274 | 397 |
Proceeds from issuance of common stock under equity award plans | 31 | |
Payments made on capital lease obligations | -126 | -123 |
Payments made on long-term debt | -1,557 | -1,408 |
Excess income tax benefit from exercise of stock options | 131 | 214 |
Payment of payroll taxes on stock-based compensation through shares withheld | -208 | |
Net cash used in financing activities | -278 | -1,097 |
Net increase (decrease) in cash and cash equivalents | 425 | -233 |
Cash and cash equivalents at beginning of period | 495 | 910 |
Cash and cash equivalents at end of period | 920 | 677 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | -669 | -518 |
Cash paid during the period for income taxes | -1,373 | -855 |
Willamette Valley Fruit Company | ||
Cash flows from investing activities: | ||
Payment of contingent consideration | -230 | -450 |
Sin In A Tin | ||
Cash flows from investing activities: | ||
Payment of contingent consideration | ($1) |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 3 Months Ended | |||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||
Operations and Summary of Significant Accounting Policies: | ||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies | ||||||||||||||||||||||
1.Organization and Summary of Significant Accounting Policies | ||||||||||||||||||||||
Inventure Foods, Inc., a Delaware corporation (referred to herein as the “Company,” “Inventure Foods,” “we,” “our” or “us”), is a leading marketer and manufacturer of healthy/natural and indulgent specialty snack food brands with more than $285 million in annual net revenues for fiscal year 2014. | ||||||||||||||||||||||
We specialize in two primary product categories: (1) healthy/natural food products and (2) indulgent specialty snack products. We sell our products nationally through a number of channels including: grocery, natural, mass merchandisers, drug, club, value, vending, food service, convenience stores and international. Our goal is to have a diversified portfolio of brands, products, customers and distribution channels. | ||||||||||||||||||||||
In our healthy/natural food category, products include Rader Farms® frozen berries, Boulder Canyon® brand kettle cooked potato chips and other snack and food items, Willamette Valley Fruit Company brand frozen berries, Fresh Frozen brand frozen vegetables, Jamba® branded blend-and-serve smoothie kits under license from Jamba Juice Company, Seattle’s Best Coffee® Frozen Coffee Blends branded blend-and-serve frozen coffee beverage under license from Seattle’s Best Coffee, LLC and private label frozen fruit and healthy/natural snacks. In our indulgent specialty snack food category, products include T.G.I. Friday’s® brand snacks under license from T.G.I. Friday’s Inc. (“T.G.I. Friday’s”), Nathan’s Famous® brand snack products under license from Nathan’s Famous Corporation, Vidalia® brand snack products under license from Vidalia Brands, Inc., Poore Brothers® kettle cooked potato chips, Bob’s Texas Style® kettle cooked chips, Tato Skins® brand potato snacks, and Sin In A Tin® chocolate pate and other frozen desserts. We also manufacture private label snacks for certain grocery retail chains and co-pack products for other snack and cereal manufacturers. | ||||||||||||||||||||||
We operate in two segments: (1) frozen products and (2) snack products. The frozen products segment includes frozen fruits, vegetables and beverages for sale primarily to groceries, club stores and mass merchandisers. All products sold under our frozen products segment are considered part of the healthy/natural food category. The snack products segment includes potato chips, kettle chips, potato crisps, potato skins, pellet snacks, sheeted dough products, cereal and extruded products for sale primarily to snack food distributors and retailers. The products sold under our snack products segment includes products considered part of the indulgent specialty snack food category, as well as products considered part of the healthy/natural food category. | ||||||||||||||||||||||
We operate manufacturing facilities in eight locations. Our frozen berry products are processed in Lynden, Washington, Salem, Oregon and Jefferson, Georgia. Our frozen berry business grows, processes and markets premium berry blends, raspberries, blueberries and rhubarb and purchases blackberries, cherries, cranberries, strawberries and other fruits from a select network of fruit growers for resale. The fruit is processed, frozen and packaged for sale and distribution to wholesale customers. Our frozen vegetable products are processed in Jefferson, Georgia, Thomasville, Georgia and Salem, Oregon. Our frozen beverage products are packaged at our Lynden, Washington and Jefferson, Georgia facilities. We also use third-party processors for certain frozen products and package certain frozen fruits for other manufacturers. The products of our newly acquired frozen desserts business are produced in Pensacola, Florida. Our snack products are manufactured at our Goodyear, Arizona and Bluffton, Indiana facilities, as well as some third-party plants for certain products. | ||||||||||||||||||||||
On April 23, 2015, we announced a voluntary product recall of certain varieties of the Company’s Fresh FrozenTM line of frozen vegetables, as well as select varieties of our Jamba® “At Home” line of smoothie kits because the Jefferson, Georgia facility tested positive for Listeria monocytogenes. For discussion of this product recall, refer to “Note 10, Subsequent Event.” | ||||||||||||||||||||||
Our fiscal year ends on the last Saturday occurring in the month of December of each calendar year. Accordingly, the first quarter of 2015 commenced December 28, 2014 and ended March 28, 2015. | ||||||||||||||||||||||
Basis of Presentation | ||||||||||||||||||||||
The consolidated financial statements for the quarter ended March 28, 2015 are unaudited and include the accounts of Inventure Foods and all of our wholly owned subsidiaries. All significant intercompany amounts and transactions have been eliminated. The consolidated financial statements, including the December 27, 2014 consolidated balance sheet data which was derived from audited financial statements, have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary in order to make the consolidated financial statements not misleading. A description of our accounting policies and other financial information is included in the audited financial statements filed with our Annual Report on Form 10-K for the fiscal year ended December 27, 2014. The results of operations for the quarter ended March 28, 2015 are not necessarily indicative of the results expected for the full year. | ||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. We classify our investments based upon an established fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are described as follows: | ||||||||||||||||||||||
Level 1Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||||||||||||||||||||||
Level 2Quoted prices in markets that are not considered to be active or financial instruments without quoted market prices, but for which all significant inputs are observable, either directly or indirectly; | ||||||||||||||||||||||
Level 3Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. | ||||||||||||||||||||||
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. | ||||||||||||||||||||||
At March 28, 2015 and December 27, 2014, the carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximate fair values since they are short term in nature. The carrying value of the long-term debt approximates fair value based on the borrowing rates currently available to us for long-term borrowings with similar terms. The following table summarizes the valuation of our assets and liabilities measured at fair value on a recurring basis (in thousands) at the respective dates set forth below: | ||||||||||||||||||||||
March 28, 2015 | December 27, 2014 | |||||||||||||||||||||
Balance Sheet Classification | Interest Rate | Non-qualified | Earn-out | Interest Rate | Non-qualified | Earn-out | ||||||||||||||||
Swaps | Deferred | Contingent | Swaps | Deferred | Contingent | |||||||||||||||||
Compensation | Consideration | Compensation | Consideration | |||||||||||||||||||
Plan | Obligation | Plan | Obligation | |||||||||||||||||||
Investments | Investments | |||||||||||||||||||||
Other assets | Level 1 | $ | — | $ | 505 | $ | — | $ | — | $ | 697 | $ | — | |||||||||
Interest rate swaps | Level 2 | (326 | ) | — | — | (349 | ) | — | — | |||||||||||||
Accrued liabilities | Level 3 | — | — | (245 | ) | — | — | (246 | ) | |||||||||||||
Other liabilities | Level 3 | — | — | (1,372 | ) | — | — | (1,602 | ) | |||||||||||||
$ | (326 | ) | $ | 505 | $ | (1,617 | ) | $ | (349 | ) | $ | 697 | $ | (1,848 | ) | |||||||
Considerable judgment is required in interpreting market data to develop the estimate of fair value of our derivative instruments. Accordingly, the estimate may not be indicative of the amounts that we could realize in a current market exchange. The use of different market assumptions or valuation methodologies could have a material effect on the estimated fair value amounts. | ||||||||||||||||||||||
The Company’s non-qualified deferred compensation plan assets consist of money market and mutual funds invested in domestic and international marketable securities that are directly observable in active markets. | ||||||||||||||||||||||
The fair value measurement of the earn-out contingent consideration obligation relates to the acquisitions of Sin In A Tin in September 2014 and Willamette Valley Fruit Company in May 2013, and is included in accrued liabilities and other long-term liabilities in the consolidated balance sheets. The fair value measurement is based upon significant inputs not observable in the market. Changes in the value of the obligation are recorded as income or expense in our consolidated statements of income. To determine the fair value, we valued the contingent consideration liability based on the expected probability weighted earn-out payments corresponding to the performance thresholds agreed to under the applicable purchase agreements. The expected earn-out payments were then present valued by applying a discount rate that captures a market participants view of the risk associated with the expected earn-out payments. | ||||||||||||||||||||||
A summary of the activity of the fair value of the measurements using unobservable inputs (Level 3 Liabilities) for the quarter ended March 28, 2015, is as follows (in thousands): | ||||||||||||||||||||||
Level 3 | ||||||||||||||||||||||
Balance at December 27, 2014 | $ | 1,848 | ||||||||||||||||||||
Earn-out compensation paid for Willamette Valley Fruit Company | (230 | ) | ||||||||||||||||||||
Earn-out compensation paid for Sin In A Tin | (1 | ) | ||||||||||||||||||||
Balance at March 28, 2015 | $ | 1,617 | ||||||||||||||||||||
Income Taxes | ||||||||||||||||||||||
Income tax benefit was $8.2 million for the quarter ended March 28, 2015, compared to income tax expense of $0.9 million for the quarter ended March 29, 2014. Our effective tax rate for both the quarter ended March 28, 2015 and March 29, 2014 was 36.0%. | ||||||||||||||||||||||
Earnings (Loss) Per Common Share | ||||||||||||||||||||||
Basic earnings (loss) per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is calculated by including all dilutive common shares such as stock options and restricted stock. Unvested restricted stock grants that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, requires earnings per share to be presented pursuant to the two-class method. However, the application of this method would have no effect on basic and diluted earnings per common share and is therefore not presented. | ||||||||||||||||||||||
For the quarter ended March 28, 2015, diluted loss per share is the same as basic loss per share as the inclusion of potentially issuable common stock would be antidilutive. For the quarter ended March 29, 2014, no shares were excluded from the computation of diluted earnings per share since the exercise price of all outstanding options were less than the average market price of our common stock for that period. Exercises of outstanding stock options are assumed to occur for purposes of calculating diluted earnings per share for periods in which their effect would not be anti-dilutive. | ||||||||||||||||||||||
Earnings per common share was computed as follows for the quarters ended March 28, 2015 and March 29, 2014 (in thousands, except per share data): | ||||||||||||||||||||||
Quarters Ended | ||||||||||||||||||||||
March 28, | March 29, | |||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Basic Earnings (Loss) Per Share: | ||||||||||||||||||||||
Net income | $ | (14,635 | ) | $ | 1,597 | |||||||||||||||||
Weighted average number of common shares | 19,581 | 19,437 | ||||||||||||||||||||
Earnings (loss) per common share | $ | (0.75 | ) | $ | 0.08 | |||||||||||||||||
Diluted Earnings (Loss) Per Share: | ||||||||||||||||||||||
Net income | $ | (14,635 | ) | $ | 1,597 | |||||||||||||||||
Weighted average number of common shares | 19,581 | 19,437 | ||||||||||||||||||||
Incremental shares from assumed conversions of stock options | — | 487 | ||||||||||||||||||||
Adjusted weighted average number of common shares | 19,581 | 19,924 | ||||||||||||||||||||
Earnings (loss) per common share | $ | (0.75 | ) | $ | 0.08 | |||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||||
Compensation expense for restricted stock and stock option awards is adjusted for estimated attainment thresholds and forfeitures and is recognized on a straight-line basis over the requisite period of the award, which is currently one to five years for restricted stock and one to five years for stock options. We estimate future forfeiture rates based on our historical experience. | ||||||||||||||||||||||
Compensation costs related to all stock-based payment arrangements, including employee stock options, are recognized in the financial statements based on the fair value method of accounting. Excess tax benefits related to stock-based payment arrangements are classified as cash inflows from financing activities and cash outflows from operating activities. See “Note 9, Stockholders’ Equity” for additional information. | ||||||||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||||||||
Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”) to the FASB’s Accounting Standards Codification. | ||||||||||||||||||||||
We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. | ||||||||||||||||||||||
In April 2014, the FASB issued amendments to guidance for reporting discontinued operations and disposals of components of an entity. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014 (early adoption is permitted only for disposals that have not been previously reported). The implementation of the amended guidance is not expected to have a material impact on our consolidated financial position or results of operations. | ||||||||||||||||||||||
In May 2014, the FASB issued new accounting guidance related to revenue recognition. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective at the beginning of our 2017 fiscal year and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. However, in April 2015, the FASB voted to propose a deferral of the effective date of the new revenue standard by one year, but to permit entities to adopt one year earlier if they choose (i.e., the original effective date). The proposed deferral would result in the new revenue standard being effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. Regardless of whether the one-year deferral is ultimately approved, we continue to evaluate the impact, if any, of adopting this new accounting standard on our financial statements. | ||||||||||||||||||||||
In June 2014, the FASB issued new guidance related to stock compensation. This new standard requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. Early adoption is permitted. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements. | ||||||||||||||||||||||
Acquisitions
Acquisitions (Sin In A Tin) | 3 Months Ended |
Mar. 28, 2015 | |
Sin In A Tin | |
Acquisitions | |
2.Acquisitions | |
Sin In A Tin | |
On September 29, 2014, we acquired the assets and intellectual property of a small boutique frozen desserts business, Sin In A Tin, for approximately $160,000 in cash. An additional amount of up to $0.5 million is payable to the seller in the form of an earn-out based on future net revenues from the Sin In A Tin products. At the time of acquisition, the contingent consideration was recorded at $0.2 million based on the fair value assessment. Additionally, we recorded $0.1 million of identifiable intangible assets and $0.1 million of net tangible assets that were assumed as a part of this acquisition based on their estimated fair values, and $0.2 million of residual goodwill. | |
The above allocation will remain preliminary until the Company has all of the information necessary to finalize the allocation of the purchase price, which shall be no later than one year following the acquisition date. | |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Inventories: | ||||||||
Inventories | ||||||||
3.Inventories | ||||||||
Inventories consisted of the following as of March 28, 2015 and December 27, 2014 (in thousands): | ||||||||
March 28, | December 27, | |||||||
2015 | 2014 | |||||||
Finished goods | $ | 19,339 | $ | 28,651 | ||||
Raw materials | 37,385 | 36,565 | ||||||
$ | 56,724 | $ | 65,216 | |||||
Goodwill_Trademarks_and_Other_
Goodwill, Trademarks and Other Intangibles | 3 Months Ended | |||||||||
Mar. 28, 2015 | ||||||||||
Goodwill, Trademarks, and Other Intangible Assets: | ||||||||||
Goodwill, Trademarks and Other Intangibles | ||||||||||
4.Goodwill, Trademarks and Other Intangibles | ||||||||||
Goodwill, trademarks and other intangibles, net, consisted of the following as of March 28, 2015 and December 27, 2014 (in thousands): | ||||||||||
Estimated | March 28, | December 27, | ||||||||
Useful Life | 2015 | 2014 | ||||||||
Goodwill: | ||||||||||
Inventure Foods | $ | 5,986 | $ | 5,986 | ||||||
Rader Farms | 5,630 | 5,630 | ||||||||
Willamette Valley Fruit Company | 3,147 | 3,147 | ||||||||
Fresh Frozen Foods | 8,301 | 8,301 | ||||||||
Sin In A Tin | 222 | 222 | ||||||||
Total Goodwill | $ | 23,286 | $ | 23,286 | ||||||
Trademarks: | ||||||||||
Inventure Foods | $ | 896 | $ | 896 | ||||||
Rader Farms | 1,070 | 1,070 | ||||||||
Willamette Valley Fruit Company | 740 | 740 | ||||||||
Fresh Frozen Foods | 9,475 | 9,475 | ||||||||
Sin In A Tin | 123 | 123 | ||||||||
Other intangibles: | ||||||||||
Rader Farms - Customer relationship, gross carrying amount | 10 years | 100 | 100 | |||||||
Rader Farms - Customer relationship, accum. amortization | (79 | ) | (76 | ) | ||||||
Willamette Valley Fruit Company - Customer relationship, gross carrying amount | 10 years | 3,200 | 3,200 | |||||||
Willamette Valley Fruit Company - Customer relationship, accum. amortization | (560 | ) | (480 | ) | ||||||
Fresh Frozen Foods - Customer relationship, gross carrying amount | 12 years | — | 10,487 | |||||||
Fresh Frozen Foods - Customer relationship, accum. amortization | — | (992 | ) | |||||||
Total trademarks and other intangibles, net | $ | 14,965 | $ | 24,543 | ||||||
Our amortization expense related to these intangibles was $301,000 for the quarters ended March 28, 2015 and March 29, 2014. The trademarks are deemed to have an indefinite useful life because they are expected to generate cash flows indefinitely. | ||||||||||
Goodwill and trademarks are reviewed for impairment annually in the fourth fiscal quarter, or more frequently if impairment indicators arise. As a result of the product recall (See “Note 10, Subsequent Event”), the Company reviewed the Fresh Frozen Foods goodwill and intangible assets for impairment as of March 28, 2015. Our analysis included a review of the forecasted future cash flows of the Fresh Frozen business, including the estimated cash outflows directly related to the product recall. Based on our review, we concluded that the intangible asset related to the acquired customer relationships of Fresh Frozen Foods was fully impaired. Accordingly, the Company recorded an intangible asset impairment charge of $9.3 million, which represents the unamortized balance as of March 28, 2015. We believe the carrying values of our remaining goodwill and intangible assets are appropriate as of March 28, 2015. | ||||||||||
Accrued_Liabilities
Accrued Liabilities | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Accrued Liabilities: | ||||||||
Accrued Liabilities | ||||||||
5.Accrued Liabilities | ||||||||
Accrued liabilities consisted of the following as of March 28, 2015 and December 27, 2014 (in thousands): | ||||||||
March 28, | December 27, | |||||||
2015 | 2014 | |||||||
Accrued payroll and payroll taxes | $ | 2,285 | $ | 2,365 | ||||
Accrued royalties and commissions | 1,226 | 1,048 | ||||||
Accrued advertising and promotion | 1,097 | 351 | ||||||
Accrued berry purchase payments | — | 4,127 | ||||||
Accrued product recall warranty (see Note 10) | 10,379 | — | ||||||
Accrued other | 8,049 | 5,087 | ||||||
$ | 23,036 | $ | 12,978 | |||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Long-Term Debt and Line of Credit: | ||||||||
Long-Term Debt | ||||||||
6.Long-Term Debt | ||||||||
Long-term debt consisted of the following as of March 28, 2015 and December 27, 2014 (in thousands): | ||||||||
March 28, | December 27, | |||||||
2015 | 2014 | |||||||
Senior secured term loan due quarterly through November 2018 | $ | 53,625 | $ | 54,900 | ||||
Equipment term loan B due monthly through September 2020 | 1,227 | 1,278 | ||||||
Equipment term loan, Rader Farms, due monthly through August 2019 | 2,346 | 2,428 | ||||||
Equipment term loan, Willamette Valley Fruit Company, due monthly through August 2019 | 1,741 | 1,802 | ||||||
Bluffton, IN mortgage loan due monthly through December 2016 | 1,801 | 1,825 | ||||||
Lynden, WA real estate term loan due monthly through July 2017 | 2,501 | 2,565 | ||||||
Capital lease obligations, primarily due September 2017 | 1,336 | 1,461 | ||||||
64,577 | 66,259 | |||||||
Less current portion of long-term debt | (7,281 | ) | (7,041 | ) | ||||
Long-term debt, less current portion | $ | 57,296 | $ | 59,218 | ||||
In August 2014, we entered into two separate equipment term loans with Banc of America Leasing & Capital LLC; one for $2.6 million to finance equipment to be used at the Company’s Rader Farms facility, and the other for $1.9 million to finance equipment to be used at Willamette Valley Fruit Company. Both of these equipment term loans accrue interest at a rate of 2.35% and will be repaid over 60 recurring monthly payments commencing September 15, 2014. | ||||||||
On November 8, 2013, we entered into a $60.0 million senior secured term loan and a new $30.0 million senior secured revolving line of credit with a syndicate of lenders led by U.S. Bank National Association (“U.S. Bank”), pursuant to a Credit Agreement, a Security Agreement and certain other customary ancillary agreements (the “Senior Credit Facility”). To facilitate the Senior Credit Facility, the Company and its wholly owned subsidiaries entered into a Letter Amendment Agreement, dated as of November 8, 2013, with U.S. Bank (the “Letter Amendment”). The Letter Amendment reconciled the terms of the Senior Credit Facility with the terms of the Loan and Security Agreement and that certain Loan Agreement (term loan), dated as of November 30, 2006, by and between the Company’s wholly owned subsidiary, La Cometa Properties, Inc., and U.S. Bank. | ||||||||
The borrowing capacity available to us under the Senior Credit Facility consists of notes representing: | ||||||||
· | A revolving line of credit up to $30.0 million, maturing on November 8, 2018. At March 28, 2015, $20.1 million was outstanding and $9.9 million was available under the line of credit. All borrowings under the revolving line of credit bear interest at either (i) the prime rate of interest announced by U.S. Bank from time to time or (ii) LIBOR, plus the LIBOR Rate Margin (as defined in the revolving credit facility note) as adjusted. | |||||||
· | An equipment term loan B due September 2020 with interest at 3.12%. On August 14, 2013, we entered into an equipment term loan B to finance equipment located at Willamette Valley Fruit Company. | |||||||
The Senior Credit Facility maintained the terms and borrowing capacity of the prior agreement with respect to the following: | ||||||||
· | Bluffton, Indiana mortgage loan due December 2016; interest rate at 30 day LIBOR plus 165 basis points, fixed through a swap agreement to 6.85%; collateralized by land and a building in Bluffton, Indiana. | |||||||
· | Lynden, Washington real estate term loan due July 2017; interest at LIBOR plus 165 basis points; fixed through a swap agreement to 4.28%; secured by a leasehold interest in the real property in Lynden, Washington. | |||||||
As is customary in such financings, U.S. Bank, on behalf of the syndicate of lenders, may terminate the syndicate’s commitments, accelerate the repayment of amounts outstanding and exercise other remedies upon the occurrence of an event of default (as defined in the Senior Credit Facility), subject, in certain instances, to the expiration of an applicable cure period. The Senior Credit Facility requires us to maintain compliance with certain financial covenants, including a minimum fixed charge coverage ratio and a leverage ratio. At March 28, 2015, we were in compliance with all of the financial covenants. | ||||||||
Interest Rate Swaps | ||||||||
To manage exposure to changing interest rates, we selectively enter into interest rate swap agreements. Our interest rate swaps qualify for and are designated as cash flow hedges. Changes in the fair value of a swap that is highly effective and that is designated and qualifies as a cash flow hedge to the extent that the hedge is effective, are recorded in other comprehensive income. | ||||||||
We entered into an interest rate swap in 2006 to convert the interest rate of the mortgage to purchase the Bluffton, Indiana facility from the contractual rate of 30 day LIBOR plus 165 basis points to a fixed rate of 6.85%. The swap has a fixed pay-rate of 6.85% and a notional value of approximately $1.8 million at each of March 28, 2015 and December 27, 2014, and expires in December 2016. We evaluate the effectiveness of the hedge on a quarterly basis and, at March 28, 2015, the hedge is highly effective. The interest rate swap had a fair value of approximately $141,000 and $155,000 at March 28, 2015 and December 27, 2014, respectively, which were recorded as a liability on the accompanying consolidated balance sheets. The swap value was determined in accordance with the fair value measurement guidance discussed earlier using Level 2 observable inputs and approximates the loss that would have been realized if the contract had been settled at the end of the fiscal period. | ||||||||
We entered into another interest rate swap in January 2008 to effectively convert the interest rate on the real estate term loan to a fixed rate of 4.28%. The interest rate swap is structured with decreasing notional values to match the expected pay down of the debt. The notional value of the swap was $2.5 million and $2.6 million at March 28, 2015 and December 27, 2014, respectively. The interest rate swap is accounted for as a cash flow hedge derivative and expires in July 2017. The interest rate swap had fair value of approximately $185,000 and $194,000 at March 28, 2015 and December 27, 2014, respectively, which were recorded as a liability on the accompanying consolidated balance sheets. This value was determined in accordance with the fair value measurement guidance discussed earlier using Level 2 observable inputs and approximates the loss that would have been realized if the contract had been settled at the end of the fiscal period. | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 28, 2015 | |
Commitments and Contingencies: | |
Commitments and Contingencies | |
7.Commitments and Contingencies | |
Contractual | |
Our future contractual obligations consist principally of long-term debt, operating leases, minimum commitments regarding third-party warehouse operations services, forward purchase agreements and remaining minimum royalty payments due licensors pursuant to brand licensing agreements. | |
In order to mitigate the risks of volatility in commodity markets to which we are exposed, we have entered into forward purchase agreements with certain suppliers based on market prices, forward price projections and expected usage levels. Our purchase commitments for certain ingredients, packaging materials and energy are generally less than 12 months. | |
Legal Proceedings | |
We are periodically a party to various lawsuits arising in the ordinary course of business. Management believes, based on discussions with legal counsel, that the resolution of any such lawsuits, individually and in the aggregate, will not have a material adverse effect on our financial position or results of operations. | |
Under our license agreement with the Jamba Juice Company (“Jamba Juice”), we are obligated and have agreed to indemnify and defend Jamba Juice in the two matters identified below, and Jamba Juice has tendered defense of these matters to us. | |
On June 28, 2013, a class action complaint against Jamba Juice and the Company, captioned Lilly v. Jamba Juice Company et al (the “Lilly Matter”), was filed in the Federal Court for the Northern District of California. The plaintiff purports to represent a class of individuals who purchased make-at-home smoothie kits from Jamba Juice, and alleges that such smoothie kits contain unnaturally processed, synthetic and/or non-natural ingredients and that use of the words “all natural” on the labels of these smoothie kits is unfair and fraudulent and violates various false advertising and unfair competition laws. The plaintiff also alleges that the smoothie kits contain two additional allegedly non-natural ingredients. While we currently believe the “all natural” statement on the smoothie kits are not misleading and in full compliance with U.S. Food and Drug Administration guidelines, we are investigating the claims asserted in the Lilly Matter, and intend to vigorously defend against them. On September 17, 2013, we filed a motion to dismiss, seeking to dismiss plaintiffs’ claims as to gelatin and the Orange Dream Machine smoothie kit. Our motion was denied in November 2013. On February 3, 2014, the plaintiffs filed a motion to certify a class of all persons in California who bought certain Jamba Juice smoothie kits. On September 18, 2014, the court issued an order granting class certification solely for purposes of determining liability and denying certification for purposes of damages. The court requested further briefing on the question of whether it has jurisdiction to certify a class for purposes of granting injunctive relief. Following mediation, the basic terms of a proposed class settlement were reached. The parties signed a definitive agreement that was filed with the court for approval on December 1, 2014. The court’s ruling on a motion for preliminary approval is pending and will be followed by a subsequent final approval hearing. If approved by the court, a settlement class will be certified for injunctive relief only, requiring the Company to (i) remove the “all natural” designation on the labels of the challenged products and (ii) pay $5,000 to each of the two individual plaintiffs and up to $425,000 to plaintiffs’ counsel for fees and costs. The case would also be dismissed and the Company would pay no damages to class members, although there would be no release by class members of any individual damage claims they might have related to the Lilly Matter. | |
On February 26, 2015, the Company received a demand letter from counsel in California purporting to represent plaintiff, Maria Ghermezian and other California consumers. The letter alleges that the Company’s use of the words “all natural” to describe certain kettle cooked potato chips is misleading and deceptive to consumers and violates the California Consumer Legal Remedies Act. The demand letter seeks changes to the Company’s advertising of the products, a recall of the products, and restitution. Numerous “all natural” lawsuits have been brought against various food manufacturers and distributors in California over the past several years, including the Company. While we currently believe the “all natural” claims on certain of our potato chip packages are not misleading, we are investigating the claims asserted in the letter, and intend to vigorously defend against them. | |
Business_Segments
Business Segments | 3 Months Ended | ||||||||||
Mar. 28, 2015 | |||||||||||
Business Segments and Significant Customers: | |||||||||||
Business Segments | |||||||||||
8.Business Segments | |||||||||||
Our operations consist of two reportable segments: (1) frozen products and (2) snack products. The frozen products segment produces frozen fruits, vegetables and beverages for sale primarily to groceries, club stores and mass merchandisers. The snack products segment produces potato chips, kettle chips, potato crisps, potato skins, pellet snacks, sheeted dough products, cereal and extruded products for sale primarily to snack food distributors and retailers. Our reportable segments offer different products and services. The majority of our revenues are attributable to external customers in the United States. We also sell to external customers internationally; however, the revenues attributable to such customers are immaterial. All of our assets are located in the United States. | |||||||||||
We do not allocate assets, selling, general and administrative expenses, income taxes or other income and expense to our reportable segments. The following tables present information about our reportable segments for the quarters ended March 28, 2015 and March 29, 2014 (in thousands): | |||||||||||
Frozen | Snack | Consolidated | |||||||||
Products | Products | ||||||||||
Quarter ended March 28, 2015 | |||||||||||
Net revenues from external customers | $ | 51,349 | $ | 26,258 | $ | 77,607 | |||||
Depreciation and amortization included in segment gross profit | 556 | 606 | 1,162 | ||||||||
Segment gross profit | (7,489 | ) | 3,789 | (3,700 | ) | ||||||
Quarter ended March 29, 2014 | |||||||||||
Net revenues from external customers | $ | 43,655 | $ | 23,854 | $ | 67,509 | |||||
Depreciation and amortization included in segment gross profit | 475 | 577 | 1,052 | ||||||||
Segment gross profit | 7,844 | 3,719 | 11,563 | ||||||||
The following table reconciles reportable segment gross profit to our consolidated income (loss) before income taxes for the quarters ended March 28, 2015 and March 29, 2014 (in thousands): | |||||||||||
Quarter Ended | |||||||||||
March 28, | March 29, | ||||||||||
2015 | 2014 | ||||||||||
Segment gross profit | $ | (3,700 | ) | $ | 11,563 | ||||||
Unallocated amounts: | |||||||||||
Operating expenses | 18,429 | 8,398 | |||||||||
Interest expense, net | 730 | 670 | |||||||||
Income (loss) before income taxes | $ | (22,859 | ) | $ | 2,495 | ||||||
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | |||||||||||||
Mar. 28, 2015 | ||||||||||||||
Stockholders' Equity: | ||||||||||||||
Shareholders' Equity | ||||||||||||||
9.Stockholders’ Equity | ||||||||||||||
The Company’s Amended and Restated 2005 Equity Incentive Plan (the “2005 Plan”) was approved at our 2005 Annual Meeting of Stockholders and initially reserved for issuance of 410,518 shares of our common stock, which was the number of reserved but unissued shares available for issuance under the Company’s 1995 Stock Option Plan, as amended. The number of shares of our common stock reserved for issuance has been increased since 2005 to a total of 2,710,518 as of the date of this filing, pursuant to subsequent amendments to the 2005 Plan approved by our stockholders. If any shares of our common stock subject to awards granted under the 2005 Plan are canceled, those shares will be available for future awards under the 2005 Plan. The 2005 Plan expires in May 2015 and the new 2015 Equity Incentive Plan is expected to be approved by our shareholders in May 2015 at the Company’s annual meeting. Awards granted under the 2005 Plan may include: nonqualified stock options, incentive stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and stock-reference awards. | ||||||||||||||
Restricted Common Stock | ||||||||||||||
We have issued shares of restricted common stock in the form of restricted stock awards and restricted stock units as incentives to certain employees, officers and members of our board of directors (the “Board”). Restricted stock awards and restricted stock units granted to members of the Board are granted with a one-year service period. Restricted stock awards and restricted stock units granted to the Company’s officers vest over three years and typically contain performance restrictions that are required to be achieved over a three-year measurement period in order for the shares to be released. The number of performance-based restricted stock ultimately released varies based on whether we achieve certain financial results. Restricted stock units granted to non-officer employees generally vest over three or five years. We record compensation expense each period based on the market price of our common stock at the time of grant and, for performance-based restricted stock awards and units, our estimate of the most probable number of shares that will ultimately be released. The related stock-based compensation expense is included in selling, general and administrative expenses. Additionally, the compensation expense is adjusted for our estimate of forfeitures. Recipients of restricted common stock are entitled to receive any dividends declared on our common stock and have voting rights, regardless of whether such shares have vested. | ||||||||||||||
During the three months ended March 28, 2015 and March 29, 2014, the total stock-based compensation expense from restricted common stock recognized in the financial statements was $0.2 million and $0.1 million, respectively. There were no stock-based compensation costs capitalized. | ||||||||||||||
The following table summarizes activities related to restricted stock awards for the three months ended March 28, 2015: | ||||||||||||||
Number | Weighted | |||||||||||||
Average Grant | ||||||||||||||
Date Fair Value | ||||||||||||||
Nonvested balance at December 27, 2014 | 208,600 | $ | 7.52 | |||||||||||
Granted | — | — | ||||||||||||
Vested and released, including shares withheld to cover taxes | (90,376 | ) | 6.55 | |||||||||||
Forfeited | (21,724 | ) | 6.55 | |||||||||||
Nonvested balance at March 28, 2015 | 96,500 | $ | 8.65 | |||||||||||
As of March 28, 2015, the total unrecognized costs related to non-vested restricted stock awards was $0.4 million, which is expected to be recognized over a weighted average period of 1.12 years. This expected compensation expense does not reflect any new awards, or modifications to existing awards, that could occur in the future. | ||||||||||||||
The following table summarizes activities related to restricted stock units for the three months ended March 28, 2015: | ||||||||||||||
Number | Weighted | |||||||||||||
Average Grant | ||||||||||||||
Date Fair Value | ||||||||||||||
Nonvested balance at December 27, 2014 | 144,929 | $ | 13.21 | |||||||||||
Granted | — | — | ||||||||||||
Vested and released | — | — | ||||||||||||
Forfeited | — | — | ||||||||||||
Nonvested balance at March 28, 2015 | 144,929 | $ | 13.21 | |||||||||||
As of March 28, 2015, the total unrecognized costs related to non-vested restricted stock units was $1.2 million, which is expected to be recognized over a weighted average period of 2.25 years. This expected compensation expense does not reflect any new awards, or modifications to existing awards, that could occur in the future. | ||||||||||||||
Stock Options | ||||||||||||||
Stock-based compensation expense from stock options recognized in the financial statements totaled $0.1 million for the three months ended March 28, 2015 and March 29, 2014, which reduced income from operations accordingly. There were no stock-based compensation costs capitalized. | ||||||||||||||
The following table summarizes stock option activity during the three months ended March 28, 2015: | ||||||||||||||
Options | Weighted | Aggregate | Weighted Average | |||||||||||
Outstanding | Average | Intrinsic Value | Remaining | |||||||||||
Exercise Price | (in-the-money | Contractual Life | ||||||||||||
options) | (in years) | |||||||||||||
Outstanding at December 27, 2014 | 732,852 | $ | 5.27 | |||||||||||
Granted | — | $ | — | |||||||||||
Exercised | (13,000 | ) | $ | 3.7 | ||||||||||
Forfeited or expired | — | $ | — | |||||||||||
Outstanding at March 28, 2015 | 719,852 | $ | 5.3 | $ | 4,229,251 | 6.3 | ||||||||
As of March 28, 2015, the total unrecognized costs related to non-vested stock options granted were $0.8 million. We expect to recognize such costs in the financial statements over a weighted average period of 2.2 years. This expected compensation expense does not reflect any new awards, or modifications to existing awards, that could occur in the future. | ||||||||||||||
The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based on our closing stock price of $11.05 as of March 28, 2015, which would have been received by the option holders had all option holders exercised options and sold the underlying shares on that date. The intrinsic value related to vested stock options outstanding was $2.8 million as of March 28, 2015 based on the exercise price and our closing stock price of $11.05 as of March 28, 2015. | ||||||||||||||
The following table summarizes information about stock options outstanding and exercisable at March 28, 2015: | ||||||||||||||
Range of | Options | Weighted | Weighted | Options | Weighted | |||||||||
Exercise Prices | Outstanding | Average | Average | Exercisable | Average | |||||||||
Remaining | Exercise | Exercise | ||||||||||||
Contractual | Price | Price | ||||||||||||
Life | ||||||||||||||
(in years) | ||||||||||||||
$1.70 - $3.20 | 182,200 | 3.7 | $ | 1.91 | 179,600 | $ | 1.90 | |||||||
$3.44 - $4.28 | 182,000 | 5.8 | $ | 3.91 | 100,000 | $ | 3.89 | |||||||
$6.55 - $7.21 | 301,500 | 7.7 | $ | 6.92 | 92,200 | $ | 6.87 | |||||||
$7.61 - $13.21 | 54,152 | 9.1 | $ | 12.33 | 3,500 | $ | 9.09 | |||||||
719,852 | 6.3 | $ | 5.30 | 375,300 | $ | 3.72 | ||||||||
Prior to May 2008, all stock option grants had a five-year term. The fair value of these stock option grants is amortized to expense over the service period, generally five years for employees and one year for members of the Board. In May 2008, our Board approved a 10-year term for all future stock option grants, with service periods of five years for employees and one year for members of the Board. We issue new shares upon the exercise of stock options, as opposed to reissuing treasury shares. | ||||||||||||||
Subsequent_Event
Subsequent Event | 3 Months Ended | ||||
Mar. 28, 2015 | |||||
Subsequent Event | |||||
Subsequent Event | |||||
10.Subsequent Event | |||||
On April 23, 2015, we announced a voluntary product recall of certain varieties of the Company’s Fresh FrozenTM line of frozen vegetables, as well as select varieties of our Jamba® “At Home” line of smoothie kits because our Jefferson, Georgia facility tested positive for Listeria monocytogenes. The impacts recorded in our consolidated statement of operations attributable to the recall for the quarter ended March 28, 2015 are summarized as follows (in thousands): | |||||
Increase / | |||||
(Decrease) | |||||
Net revenues | $ | — | |||
Cost of revenues (1) | 15,260 | ||||
Gross profit | (15,260 | ) | |||
Operating expenses: | |||||
Selling, general & administrative expenses (2) | 233 | ||||
Impairment of intangible asset (3) | 9,277 | ||||
Operating loss | (24,770 | ) | |||
Interest expense, net | — | ||||
Loss before income taxes | (24,770 | ) | |||
Income tax benefit | 8,882 | ||||
Net loss | $ | (15,888 | ) | ||
-1 | Additional cost of revenues primarily reflects the write-down of approximately $4.9 million of inventory on hand and a provision of approximately $10.4 million for additional costs estimated to be incurred related to the recall, including product expected to be returned from customers and consumers. | ||||
-2 | Additional selling, general & administrative costs consists of approximately $0.2 million to record additional accounts receivable reserves. | ||||
-3 | Amount reflects a $9.3 million impairment charge recorded to write-off the carrying value of the Fresh Frozen customer relationships intangible asset. | ||||
We expect there will be additional costs related to this recall recorded subsequent to the quarter ended March 28, 2015. To the extent that the Company is able to recover losses related to the recall through its insurance policies, such charges will be reversed in the period in which such recovery is determined to be probable, or in the period that the claim is resolved, depending upon the nature of the applicable loss; however, we can provide no assurance as to the likelihood, extent (if any) or timing of any such recovery. Additionally, while it is too soon to reliably estimate the impact of this recall on the Company’s future sales of the Fresh FrozenTM brand and the Jamba® “At Home” line of smoothie kits, net revenues of the products affected by the recall are expected to be reduced for the second fiscal quarter of 2015 and potentially subsequent quarterly periods. | |||||
Additional details of the recall, including a listing of the specific products affected, are available on the Company’s website at www.inventurefoods.com/information/frozenrecall. | |||||
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||
Operations and Summary of Significant Accounting Policies: | ||||||||||||||||||||||
Basis of Presentation | ||||||||||||||||||||||
Basis of Presentation | ||||||||||||||||||||||
The consolidated financial statements for the quarter ended March 28, 2015 are unaudited and include the accounts of Inventure Foods and all of our wholly owned subsidiaries. All significant intercompany amounts and transactions have been eliminated. The consolidated financial statements, including the December 27, 2014 consolidated balance sheet data which was derived from audited financial statements, have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary in order to make the consolidated financial statements not misleading. A description of our accounting policies and other financial information is included in the audited financial statements filed with our Annual Report on Form 10-K for the fiscal year ended December 27, 2014. The results of operations for the quarter ended March 28, 2015 are not necessarily indicative of the results expected for the full year. | ||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. We classify our investments based upon an established fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are described as follows: | ||||||||||||||||||||||
Level 1Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||||||||||||||||||||||
Level 2Quoted prices in markets that are not considered to be active or financial instruments without quoted market prices, but for which all significant inputs are observable, either directly or indirectly; | ||||||||||||||||||||||
Level 3Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. | ||||||||||||||||||||||
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. | ||||||||||||||||||||||
At March 28, 2015 and December 27, 2014, the carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximate fair values since they are short term in nature. The carrying value of the long-term debt approximates fair value based on the borrowing rates currently available to us for long-term borrowings with similar terms. The following table summarizes the valuation of our assets and liabilities measured at fair value on a recurring basis (in thousands) at the respective dates set forth below: | ||||||||||||||||||||||
March 28, 2015 | December 27, 2014 | |||||||||||||||||||||
Balance Sheet Classification | Interest Rate | Non-qualified | Earn-out | Interest Rate | Non-qualified | Earn-out | ||||||||||||||||
Swaps | Deferred | Contingent | Swaps | Deferred | Contingent | |||||||||||||||||
Compensation | Consideration | Compensation | Consideration | |||||||||||||||||||
Plan | Obligation | Plan | Obligation | |||||||||||||||||||
Investments | Investments | |||||||||||||||||||||
Other assets | Level 1 | $ | — | $ | 505 | $ | — | $ | — | $ | 697 | $ | — | |||||||||
Interest rate swaps | Level 2 | (326 | ) | — | — | (349 | ) | — | — | |||||||||||||
Accrued liabilities | Level 3 | — | — | (245 | ) | — | — | (246 | ) | |||||||||||||
Other liabilities | Level 3 | — | — | (1,372 | ) | — | — | (1,602 | ) | |||||||||||||
$ | (326 | ) | $ | 505 | $ | (1,617 | ) | $ | (349 | ) | $ | 697 | $ | (1,848 | ) | |||||||
Considerable judgment is required in interpreting market data to develop the estimate of fair value of our derivative instruments. Accordingly, the estimate may not be indicative of the amounts that we could realize in a current market exchange. The use of different market assumptions or valuation methodologies could have a material effect on the estimated fair value amounts. | ||||||||||||||||||||||
The Company’s non-qualified deferred compensation plan assets consist of money market and mutual funds invested in domestic and international marketable securities that are directly observable in active markets. | ||||||||||||||||||||||
The fair value measurement of the earn-out contingent consideration obligation relates to the acquisitions of Sin In A Tin in September 2014 and Willamette Valley Fruit Company in May 2013, and is included in accrued liabilities and other long-term liabilities in the consolidated balance sheets. The fair value measurement is based upon significant inputs not observable in the market. Changes in the value of the obligation are recorded as income or expense in our consolidated statements of income. To determine the fair value, we valued the contingent consideration liability based on the expected probability weighted earn-out payments corresponding to the performance thresholds agreed to under the applicable purchase agreements. The expected earn-out payments were then present valued by applying a discount rate that captures a market participants view of the risk associated with the expected earn-out payments. | ||||||||||||||||||||||
A summary of the activity of the fair value of the measurements using unobservable inputs (Level 3 Liabilities) for the quarter ended March 28, 2015, is as follows (in thousands): | ||||||||||||||||||||||
Level 3 | ||||||||||||||||||||||
Balance at December 27, 2014 | $ | 1,848 | ||||||||||||||||||||
Earn-out compensation paid for Willamette Valley Fruit Company | (230 | ) | ||||||||||||||||||||
Earn-out compensation paid for Sin In A Tin | (1 | ) | ||||||||||||||||||||
Balance at March 28, 2015 | $ | 1,617 | ||||||||||||||||||||
Income Taxes | Income Taxes | |||||||||||||||||||||
Income tax benefit was $8.2 million for the quarter ended March 28, 2015, compared to income tax expense of $0.9 million for the quarter ended March 29, 2014. Our effective tax rate for both the quarter ended March 28, 2015 and March 29, 2014 was 36.0%. | ||||||||||||||||||||||
Earnings (Loss) Per Common Share | ||||||||||||||||||||||
Earnings (Loss) Per Common Share | ||||||||||||||||||||||
Basic earnings (loss) per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is calculated by including all dilutive common shares such as stock options and restricted stock. Unvested restricted stock grants that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, requires earnings per share to be presented pursuant to the two-class method. However, the application of this method would have no effect on basic and diluted earnings per common share and is therefore not presented. | ||||||||||||||||||||||
For the quarter ended March 28, 2015, diluted loss per share is the same as basic loss per share as the inclusion of potentially issuable common stock would be antidilutive. For the quarter ended March 29, 2014, no shares were excluded from the computation of diluted earnings per share since the exercise price of all outstanding options were less than the average market price of our common stock for that period. Exercises of outstanding stock options are assumed to occur for purposes of calculating diluted earnings per share for periods in which their effect would not be anti-dilutive. | ||||||||||||||||||||||
Earnings per common share was computed as follows for the quarters ended March 28, 2015 and March 29, 2014 (in thousands, except per share data): | ||||||||||||||||||||||
Quarters Ended | ||||||||||||||||||||||
March 28, | March 29, | |||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Basic Earnings (Loss) Per Share: | ||||||||||||||||||||||
Net income | $ | (14,635 | ) | $ | 1,597 | |||||||||||||||||
Weighted average number of common shares | 19,581 | 19,437 | ||||||||||||||||||||
Earnings (loss) per common share | $ | (0.75 | ) | $ | 0.08 | |||||||||||||||||
Diluted Earnings (Loss) Per Share: | ||||||||||||||||||||||
Net income | $ | (14,635 | ) | $ | 1,597 | |||||||||||||||||
Weighted average number of common shares | 19,581 | 19,437 | ||||||||||||||||||||
Incremental shares from assumed conversions of stock options | — | 487 | ||||||||||||||||||||
Adjusted weighted average number of common shares | 19,581 | 19,924 | ||||||||||||||||||||
Earnings (loss) per common share | $ | (0.75 | ) | $ | 0.08 | |||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | |||||||||||||||||||||
Compensation expense for restricted stock and stock option awards is adjusted for estimated attainment thresholds and forfeitures and is recognized on a straight-line basis over the requisite period of the award, which is currently one to five years for restricted stock and one to five years for stock options. We estimate future forfeiture rates based on our historical experience. | ||||||||||||||||||||||
Compensation costs related to all stock-based payment arrangements, including employee stock options, are recognized in the financial statements based on the fair value method of accounting. Excess tax benefits related to stock-based payment arrangements are classified as cash inflows from financing activities and cash outflows from operating activities. See “Note 9, Stockholders’ Equity” for additional information. | ||||||||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |||||||||||||||||||||
Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”) to the FASB’s Accounting Standards Codification. | ||||||||||||||||||||||
We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. | ||||||||||||||||||||||
In April 2014, the FASB issued amendments to guidance for reporting discontinued operations and disposals of components of an entity. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014 (early adoption is permitted only for disposals that have not been previously reported). The implementation of the amended guidance is not expected to have a material impact on our consolidated financial position or results of operations. | ||||||||||||||||||||||
In May 2014, the FASB issued new accounting guidance related to revenue recognition. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective at the beginning of our 2017 fiscal year and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. However, in April 2015, the FASB voted to propose a deferral of the effective date of the new revenue standard by one year, but to permit entities to adopt one year earlier if they choose (i.e., the original effective date). The proposed deferral would result in the new revenue standard being effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. Regardless of whether the one-year deferral is ultimately approved, we continue to evaluate the impact, if any, of adopting this new accounting standard on our financial statements. | ||||||||||||||||||||||
In June 2014, the FASB issued new guidance related to stock compensation. This new standard requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. Early adoption is permitted. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements. | ||||||||||||||||||||||
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||
Operations and Summary of Significant Accounting Policies: | ||||||||||||||||||||||
Summary of the valuation assets and liabilities measured at fair value on a recurring basis | The following table summarizes the valuation of our assets and liabilities measured at fair value on a recurring basis (in thousands) at the respective dates set forth below: | |||||||||||||||||||||
March 28, 2015 | December 27, 2014 | |||||||||||||||||||||
Balance Sheet Classification | Interest Rate | Non-qualified | Earn-out | Interest Rate | Non-qualified | Earn-out | ||||||||||||||||
Swaps | Deferred | Contingent | Swaps | Deferred | Contingent | |||||||||||||||||
Compensation | Consideration | Compensation | Consideration | |||||||||||||||||||
Plan | Obligation | Plan | Obligation | |||||||||||||||||||
Investments | Investments | |||||||||||||||||||||
Other assets | Level 1 | $ | — | $ | 505 | $ | — | $ | — | $ | 697 | $ | — | |||||||||
Interest rate swaps | Level 2 | (326 | ) | — | — | (349 | ) | — | — | |||||||||||||
Accrued liabilities | Level 3 | — | — | (245 | ) | — | — | (246 | ) | |||||||||||||
Other liabilities | Level 3 | — | — | (1,372 | ) | — | — | (1,602 | ) | |||||||||||||
$ | (326 | ) | $ | 505 | $ | (1,617 | ) | $ | (349 | ) | $ | 697 | $ | (1,848 | ) | |||||||
Activity of the fair value of the measurements using unobservable inputs (Level 3 Liabilities) | A summary of the activity of the fair value of the measurements using unobservable inputs (Level 3 Liabilities) for the quarter ended March 28, 2015, is as follows (in thousands): | |||||||||||||||||||||
Level 3 | ||||||||||||||||||||||
Balance at December 27, 2014 | $ | 1,848 | ||||||||||||||||||||
Earn-out compensation paid for Willamette Valley Fruit Company | (230 | ) | ||||||||||||||||||||
Earn-out compensation paid for Sin In A Tin | (1 | ) | ||||||||||||||||||||
Balance at March 28, 2015 | $ | 1,617 | ||||||||||||||||||||
Schedule of earnings per common share | Earnings per common share was computed as follows for the quarters ended March 28, 2015 and March 29, 2014 (in thousands, except per share data): | |||||||||||||||||||||
Quarters Ended | ||||||||||||||||||||||
March 28, | March 29, | |||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Basic Earnings (Loss) Per Share: | ||||||||||||||||||||||
Net income | $ | (14,635 | ) | $ | 1,597 | |||||||||||||||||
Weighted average number of common shares | 19,581 | 19,437 | ||||||||||||||||||||
Earnings (loss) per common share | $ | (0.75 | ) | $ | 0.08 | |||||||||||||||||
Diluted Earnings (Loss) Per Share: | ||||||||||||||||||||||
Net income | $ | (14,635 | ) | $ | 1,597 | |||||||||||||||||
Weighted average number of common shares | 19,581 | 19,437 | ||||||||||||||||||||
Incremental shares from assumed conversions of stock options | — | 487 | ||||||||||||||||||||
Adjusted weighted average number of common shares | 19,581 | 19,924 | ||||||||||||||||||||
Earnings (loss) per common share | $ | (0.75 | ) | $ | 0.08 | |||||||||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Inventories: | ||||||||
Schedule of inventories | ||||||||
Inventories consisted of the following as of March 28, 2015 and December 27, 2014 (in thousands): | ||||||||
March 28, | December 27, | |||||||
2015 | 2014 | |||||||
Finished goods | $ | 19,339 | $ | 28,651 | ||||
Raw materials | 37,385 | 36,565 | ||||||
$ | 56,724 | $ | 65,216 | |||||
Goodwill_Trademarks_and_Other_1
Goodwill, Trademarks and Other Intangibles (Tables) | 3 Months Ended | |||||||||
Mar. 28, 2015 | ||||||||||
Goodwill, Trademarks, and Other Intangible Assets: | ||||||||||
Schedule of goodwill, trademarks and other intangibles, net | ||||||||||
Goodwill, trademarks and other intangibles, net, consisted of the following as of March 28, 2015 and December 27, 2014 (in thousands): | ||||||||||
Estimated | March 28, | December 27, | ||||||||
Useful Life | 2015 | 2014 | ||||||||
Goodwill: | ||||||||||
Inventure Foods | $ | 5,986 | $ | 5,986 | ||||||
Rader Farms | 5,630 | 5,630 | ||||||||
Willamette Valley Fruit Company | 3,147 | 3,147 | ||||||||
Fresh Frozen Foods | 8,301 | 8,301 | ||||||||
Sin In A Tin | 222 | 222 | ||||||||
Total Goodwill | $ | 23,286 | $ | 23,286 | ||||||
Trademarks: | ||||||||||
Inventure Foods | $ | 896 | $ | 896 | ||||||
Rader Farms | 1,070 | 1,070 | ||||||||
Willamette Valley Fruit Company | 740 | 740 | ||||||||
Fresh Frozen Foods | 9,475 | 9,475 | ||||||||
Sin In A Tin | 123 | 123 | ||||||||
Other intangibles: | ||||||||||
Rader Farms - Customer relationship, gross carrying amount | 10 years | 100 | 100 | |||||||
Rader Farms - Customer relationship, accum. amortization | (79 | ) | (76 | ) | ||||||
Willamette Valley Fruit Company - Customer relationship, gross carrying amount | 10 years | 3,200 | 3,200 | |||||||
Willamette Valley Fruit Company - Customer relationship, accum. amortization | (560 | ) | (480 | ) | ||||||
Fresh Frozen Foods - Customer relationship, gross carrying amount | 12 years | — | 10,487 | |||||||
Fresh Frozen Foods - Customer relationship, accum. amortization | — | (992 | ) | |||||||
Total trademarks and other intangibles, net | $ | 14,965 | $ | 24,543 | ||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Accrued Liabilities: | ||||||||
Schedule of accrued liabilities | ||||||||
Accrued liabilities consisted of the following as of March 28, 2015 and December 27, 2014 (in thousands): | ||||||||
March 28, | December 27, | |||||||
2015 | 2014 | |||||||
Accrued payroll and payroll taxes | $ | 2,285 | $ | 2,365 | ||||
Accrued royalties and commissions | 1,226 | 1,048 | ||||||
Accrued advertising and promotion | 1,097 | 351 | ||||||
Accrued berry purchase payments | — | 4,127 | ||||||
Accrued product recall warranty (see Note 10) | 10,379 | — | ||||||
Accrued other | 8,049 | 5,087 | ||||||
$ | 23,036 | $ | 12,978 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Long-Term Debt and Line of Credit: | ||||||||
Schedule of long-term debt | ||||||||
Long-term debt consisted of the following as of March 28, 2015 and December 27, 2014 (in thousands): | ||||||||
March 28, | December 27, | |||||||
2015 | 2014 | |||||||
Senior secured term loan due quarterly through November 2018 | $ | 53,625 | $ | 54,900 | ||||
Equipment term loan B due monthly through September 2020 | 1,227 | 1,278 | ||||||
Equipment term loan, Rader Farms, due monthly through August 2019 | 2,346 | 2,428 | ||||||
Equipment term loan, Willamette Valley Fruit Company, due monthly through August 2019 | 1,741 | 1,802 | ||||||
Bluffton, IN mortgage loan due monthly through December 2016 | 1,801 | 1,825 | ||||||
Lynden, WA real estate term loan due monthly through July 2017 | 2,501 | 2,565 | ||||||
Capital lease obligations, primarily due September 2017 | 1,336 | 1,461 | ||||||
64,577 | 66,259 | |||||||
Less current portion of long-term debt | (7,281 | ) | (7,041 | ) | ||||
Long-term debt, less current portion | $ | 57,296 | $ | 59,218 | ||||
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | ||||||||||
Mar. 28, 2015 | |||||||||||
Business Segments and Significant Customers: | |||||||||||
Schedule of information by reportable segments | The following tables present information about our reportable segments for the quarters ended March 28, 2015 and March 29, 2014 (in thousands): | ||||||||||
Frozen | Snack | Consolidated | |||||||||
Products | Products | ||||||||||
Quarter ended March 28, 2015 | |||||||||||
Net revenues from external customers | $ | 51,349 | $ | 26,258 | $ | 77,607 | |||||
Depreciation and amortization included in segment gross profit | 556 | 606 | 1,162 | ||||||||
Segment gross profit | (7,489 | ) | 3,789 | (3,700 | ) | ||||||
Quarter ended March 29, 2014 | |||||||||||
Net revenues from external customers | $ | 43,655 | $ | 23,854 | $ | 67,509 | |||||
Depreciation and amortization included in segment gross profit | 475 | 577 | 1,052 | ||||||||
Segment gross profit | 7,844 | 3,719 | 11,563 | ||||||||
Schedule of reconciliation of reportable segment gross profit to consolidated income before income tax provision | The following table reconciles reportable segment gross profit to our consolidated income (loss) before income taxes for the quarters ended March 28, 2015 and March 29, 2014 (in thousands): | ||||||||||
Quarter Ended | |||||||||||
March 28, | March 29, | ||||||||||
2015 | 2014 | ||||||||||
Segment gross profit | $ | (3,700 | ) | $ | 11,563 | ||||||
Unallocated amounts: | |||||||||||
Operating expenses | 18,429 | 8,398 | |||||||||
Interest expense, net | 730 | 670 | |||||||||
Income (loss) before income taxes | $ | (22,859 | ) | $ | 2,495 | ||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | |||||||||||||
Mar. 28, 2015 | ||||||||||||||
Stockholders' Equity: | ||||||||||||||
Schedule of restricted share awards activity | Number | Weighted | ||||||||||||
Average Grant | ||||||||||||||
Date Fair Value | ||||||||||||||
Nonvested balance at December 27, 2014 | 208,600 | $ | 7.52 | |||||||||||
Granted | — | — | ||||||||||||
Vested and released, including shares withheld to cover taxes | (90,376 | ) | 6.55 | |||||||||||
Forfeited | (21,724 | ) | 6.55 | |||||||||||
Nonvested balance at March 28, 2015 | 96,500 | $ | 8.65 | |||||||||||
Summary of restricted stock units activity | ||||||||||||||
Number | Weighted | |||||||||||||
Average Grant | ||||||||||||||
Date Fair Value | ||||||||||||||
Nonvested balance at December 27, 2014 | 144,929 | $ | 13.21 | |||||||||||
Granted | — | — | ||||||||||||
Vested and released | — | — | ||||||||||||
Forfeited | — | — | ||||||||||||
Nonvested balance at March 28, 2015 | 144,929 | $ | 13.21 | |||||||||||
Summary of stock option activity | ||||||||||||||
Options | Weighted | Aggregate | Weighted Average | |||||||||||
Outstanding | Average | Intrinsic Value | Remaining | |||||||||||
Exercise Price | (in-the-money | Contractual Life | ||||||||||||
options) | (in years) | |||||||||||||
Outstanding at December 27, 2014 | 732,852 | $ | 5.27 | |||||||||||
Granted | — | $ | — | |||||||||||
Exercised | (13,000 | ) | $ | 3.7 | ||||||||||
Forfeited or expired | — | $ | — | |||||||||||
Outstanding at March 28, 2015 | 719,852 | $ | 5.3 | $ | 4,229,251 | 6.3 | ||||||||
Summary of stock options outstanding and exercisable | ||||||||||||||
Range of | Options | Weighted | Weighted | Options | Weighted | |||||||||
Exercise Prices | Outstanding | Average | Average | Exercisable | Average | |||||||||
Remaining | Exercise | Exercise | ||||||||||||
Contractual | Price | Price | ||||||||||||
Life | ||||||||||||||
(in years) | ||||||||||||||
$1.70 - $3.20 | 182,200 | 3.7 | $ | 1.91 | 179,600 | $ | 1.90 | |||||||
$3.44 - $4.28 | 182,000 | 5.8 | $ | 3.91 | 100,000 | $ | 3.89 | |||||||
$6.55 - $7.21 | 301,500 | 7.7 | $ | 6.92 | 92,200 | $ | 6.87 | |||||||
$7.61 - $13.21 | 54,152 | 9.1 | $ | 12.33 | 3,500 | $ | 9.09 | |||||||
719,852 | 6.3 | $ | 5.30 | 375,300 | $ | 3.72 | ||||||||
Subsequent_Event_Tables
Subsequent Event (Tables) | 3 Months Ended | ||||
Mar. 28, 2015 | |||||
Subsequent Event | |||||
Schedule of impacts in statement of operations attributable to the product recall | The impacts recorded in our consolidated statement of operations attributable to the recall for the quarter ended March 28, 2015 are summarized as follows (in thousands): | ||||
Increase / | |||||
(Decrease) | |||||
Net revenues | $ | — | |||
Cost of revenues (1) | 15,260 | ||||
Gross profit | (15,260 | ) | |||
Operating expenses: | |||||
Selling, general & administrative expenses (2) | 233 | ||||
Impairment of intangible asset (3) | 9,277 | ||||
Operating loss | (24,770 | ) | |||
Interest expense, net | — | ||||
Loss before income taxes | (24,770 | ) | |||
Income tax benefit | 8,882 | ||||
Net loss | $ | (15,888 | ) | ||
-1 | Additional cost of revenues primarily reflects the write-down of approximately $4.9 million of inventory on hand and a provision of approximately $10.4 million for additional costs estimated to be incurred related to the recall, including product expected to be returned from customers and consumers. | ||||
-2 | Additional selling, general & administrative costs consists of approximately $0.2 million to record additional accounts receivable reserves. | ||||
-3 | Amount reflects a $9.3 million impairment charge recorded to write-off the carrying value of the Fresh Frozen customer relationships intangible asset. | ||||
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 28, 2015 | Dec. 27, 2014 |
product | segment | ||
item | location | ||
location | |||
Operations and Summary of Significant Accounting Policies: | |||
Minimum annual net revenues | $285 | ||
Number of reporting units | 2 | 2 | |
Number of locations in which manufacturing facilities are operated | 8 | 8 | |
Number of product categories | 2 | 2 |
Organization_and_Summary_of_Si4
Organization and Summary of Significant Accounting Policies (Details 2) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Dec. 27, 2014 |
Income Taxes | |||
Income tax (benefit) expense | ($8,224) | $898 | |
Effective tax rate (as a percent) | 36.00% | 36.00% | |
Fair Value, Inputs, Level 1 [Member] | Other Assets [Member] | |||
Assets: | |||
Non-qualified Deferred Compensation Plan Investments | 505 | 697 | |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | |||
Liabilities: | |||
Interest rate swaps | -326 | -349 | |
Fair Value, Inputs, Level 3 [Member] | Accrued Liabilities [Member] | |||
Liabilities: | |||
Earn-out contingent consideration obligation | -245 | -246 | |
Fair Value, Inputs, Level 3 [Member] | Other Liabilities [Member] | |||
Liabilities: | |||
Earn-out contingent consideration obligation | -1,372 | -1,602 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Liabilities: | |||
Interest rate swaps | -326 | -349 | |
Earn-out contingent consideration obligation | -1,617 | -1,848 | |
Assets: | |||
Non-qualified Deferred Compensation Plan Investments | $505 | $697 |
Organization_and_Summary_of_Si5
Organization and Summary of Significant Accounting Policies (Details 3) (Earn out Compensation due [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Dec. 27, 2014 |
Fair value of the measurements using unobservable inputs (Level 3 Liabilities) | ||
Balance at beginning of period | $1,848 | |
Balance at end of period | 1,617 | 1,848 |
Willamette Valley Fruit Company | ||
Fair value of the measurements using unobservable inputs (Level 3 Liabilities) | ||
Earn-out compensation paid | -230 | |
Sin In A Tin | ||
Fair value of the measurements using unobservable inputs (Level 3 Liabilities) | ||
Earn-out compensation paid | ($1) |
Organization_and_Summary_of_Si6
Organization and Summary of Significant Accounting Policies (Details 4) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Earnings (loss) per common share: | ||
Anti-dilutive options excluded from computation of diluted earnings per share (in shares) | 0 | |
Basic Earnings (Loss) Per Share: | ||
Net income (loss) | ($14,635) | $1,597 |
Weighted average number of common shares | 19,581,000 | 19,437,000 |
Earnings (loss) per common share (in dollars per share) | ($0.75) | $0.08 |
Diluted Earnings (Loss) Per Share: | ||
Net income (loss) | ($14,635) | $1,597 |
Weighted average number of common shares | 19,581,000 | 19,437,000 |
Incremental shares from assumed conversions of stock options | 487,000 | |
Adjusted weighted average number of common shares | 19,581,000 | 19,924,000 |
Earnings (loss) per common share (in dollars per share) | ($0.75) | $0.08 |
Organization_and_Summary_of_Si7
Organization and Summary of Significant Accounting Policies (Details 5) | 3 Months Ended |
Mar. 28, 2015 | |
Stock Options | |
Stock Options and Stock-Based Compensation | |
Requisite period of the award over which stock based compensation award expenses are recognized | 5 years |
Stock Options | Minimum | |
Stock Options and Stock-Based Compensation | |
Requisite period of the award over which stock based compensation award expenses are recognized | 1 year |
Stock Options | Maximum | |
Stock Options and Stock-Based Compensation | |
Requisite period of the award over which stock based compensation award expenses are recognized | 5 years |
Restricted Stock | Minimum | |
Stock Options and Stock-Based Compensation | |
Requisite period of the award over which stock based compensation award expenses are recognized | 1 year |
Restricted Stock | Maximum | |
Stock Options and Stock-Based Compensation | |
Requisite period of the award over which stock based compensation award expenses are recognized | 5 years |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 28, 2015 | Mar. 29, 2014 | Sep. 29, 2014 | Dec. 27, 2014 | |
Acquisition | ||||
Net revenues | $77,607,000 | $67,509,000 | ||
Fair value of net assets acquired: | ||||
Goodwill | 23,286,000 | 23,286,000 | ||
Sin In A Tin | ||||
Acquisition | ||||
Maximum additional purchase price consideration for meeting certain performance thresholds | 500,000 | |||
Purchase price paid as: | ||||
Cash purchase price | 160,000 | |||
Contingent consideration | 200,000 | |||
Fair value of net assets acquired: | ||||
Identifiable intangible assets | 100,000 | |||
Identifiable tangible assets | 100,000 | |||
Goodwill | $200,000 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Thousands, unless otherwise specified | ||
Inventories: | ||
Finished goods | $19,339 | $28,651 |
Raw materials | 37,385 | 36,565 |
Total inventories | $56,724 | $65,216 |
Goodwill_Trademarks_and_Other_2
Goodwill, Trademarks and Other Intangibles (Details) (USD $) | 3 Months Ended | ||
Mar. 28, 2015 | Mar. 29, 2014 | Dec. 27, 2014 | |
Goodwill, trademarks and other intangible assets | |||
Goodwill | $23,286,000 | $23,286,000 | |
Other intangibles: | |||
Total trademarks and other intangibles, net | 14,965,000 | 24,543,000 | |
Amortization expense related to intangibles | 301,000 | 301,000 | |
Impairment of intangible asset | 9,277,000 | ||
Inventure Foods [Member] | |||
Goodwill, trademarks and other intangible assets | |||
Goodwill | 5,986,000 | 5,986,000 | |
Inventure Foods [Member] | Trademarks [Member] | |||
Goodwill, trademarks and other intangible assets | |||
Trademarks | 896,000 | 896,000 | |
Rader Farms [Member] | |||
Goodwill, trademarks and other intangible assets | |||
Goodwill | 5,630,000 | 5,630,000 | |
Rader Farms [Member] | Customer Relationships | |||
Other intangibles: | |||
Estimated useful life | 10 years | ||
Intangible assets, gross | 100,000 | 100,000 | |
Accum. amortization | -79,000 | -76,000 | |
Rader Farms [Member] | Trademarks [Member] | |||
Goodwill, trademarks and other intangible assets | |||
Trademarks | 1,070,000 | 1,070,000 | |
Willamette Valley Fruit Company | |||
Goodwill, trademarks and other intangible assets | |||
Goodwill | 3,147,000 | 3,147,000 | |
Willamette Valley Fruit Company | Customer Relationships | |||
Other intangibles: | |||
Estimated useful life | 10 years | ||
Intangible assets, gross | 3,200,000 | 3,200,000 | |
Accum. amortization | -560,000 | -480,000 | |
Willamette Valley Fruit Company | Trademarks [Member] | |||
Goodwill, trademarks and other intangible assets | |||
Trademarks | 740,000 | 740,000 | |
Fresh Frozen Foods | |||
Goodwill, trademarks and other intangible assets | |||
Goodwill | 8,301,000 | 8,301,000 | |
Fresh Frozen Foods | Customer Relationships | |||
Other intangibles: | |||
Estimated useful life | 12 years | ||
Intangible assets, gross | 10,487,000 | ||
Accum. amortization | -992,000 | ||
Impairment of intangible asset | 9,300,000 | ||
Fresh Frozen Foods | Trademarks [Member] | |||
Goodwill, trademarks and other intangible assets | |||
Trademarks | 9,475,000 | 9,475,000 | |
Sin In A Tin | |||
Goodwill, trademarks and other intangible assets | |||
Goodwill | 222,000 | 222,000 | |
Sin In A Tin | Trademarks [Member] | |||
Goodwill, trademarks and other intangible assets | |||
Trademarks | $123,000 | $123,000 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities: | ||
Accrued payroll and payroll taxes | $2,285 | $2,365 |
Accrued royalties and commissions | 1,226 | 1,048 |
Accrued advertising and promotion | 1,097 | 351 |
Accrued berry purchase payments | 4,127 | |
Accrued product recall warranty (see Note 10) | 10,379 | |
Accrued other | 8,049 | 5,087 |
Total accrued liabilities | $23,036 | $12,978 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 1 Months Ended | 3 Months Ended | ||
Aug. 30, 2014 | Mar. 28, 2015 | Dec. 27, 2014 | Nov. 08, 2013 | |
loan | item | |||
Long-term debt and line of credit | ||||
Number of equipment term loans entered | 2 | |||
Long-term debt | $64,577,000 | $66,259,000 | ||
Less current portion of long-term debt | -7,281,000 | -7,041,000 | ||
Long-term debt, less current portion | 57,296,000 | 59,218,000 | ||
Outstanding credit facility | 20,077,000 | 18,802,000 | ||
Accumulated depreciation | 41,859,000 | 40,179,000 | ||
Equipment Term Loan B Due Monthly Through September 2020 | ||||
Long-term debt and line of credit | ||||
Long-term debt | 1,227,000 | 1,278,000 | ||
Stated interest rate (as a percent) | 3.12% | |||
Equipment Term Loan For Rader Farms Facilities Due Monthly Through August 2019 | ||||
Long-term debt and line of credit | ||||
Long-term debt | 2,346,000 | 2,428,000 | ||
Maximum borrowing capacity | 2,600,000 | |||
Stated interest rate (as a percent) | 2.35% | |||
Number of monthly payments | 60 | |||
Equipment Term Loan For Willamette Valley Fruit Company Due Monthly Through August 2019 | ||||
Long-term debt and line of credit | ||||
Long-term debt | 1,741,000 | 1,802,000 | ||
Maximum borrowing capacity | 1,900,000 | |||
Stated interest rate (as a percent) | 2.35% | |||
Number of monthly payments | 60 | |||
Bluffton, IN mortgage loan due monthly through December 2016 | ||||
Long-term debt and line of credit | ||||
Long-term debt | 1,801,000 | 1,825,000 | ||
Variable rate basis | 30 day LIBOR | |||
Basis points added to base rate (as a percent) | 1.65% | |||
Bluffton, IN mortgage loan due monthly through December 2016 | Cash Flow Hedging [Member] | ||||
Long-term debt and line of credit | ||||
Fixed interest rate through swap agreement (as a percent) | 6.85% | |||
Interest Rate Cash Flow Hedges | ||||
Notional value of interest rate swap | 1,800,000 | 1,800,000 | ||
Fair value of interest rate swap | 141,000 | 155,000 | ||
Lynden, WA real estate term loan due monthly through July 2017 | ||||
Long-term debt and line of credit | ||||
Long-term debt | 2,501,000 | 2,565,000 | ||
Variable rate basis | LIBOR | |||
Basis points added to base rate (as a percent) | 1.65% | |||
Lynden, WA real estate term loan due monthly through July 2017 | Cash Flow Hedging [Member] | ||||
Long-term debt and line of credit | ||||
Fixed interest rate through swap agreement (as a percent) | 4.28% | |||
Interest Rate Cash Flow Hedges | ||||
Notional value of interest rate swap | 2,500,000 | 2,600,000 | ||
Fair value of interest rate swap | 185,000 | 194,000 | ||
Capital lease obligations, primarily due September 2017 | ||||
Long-term debt and line of credit | ||||
Long-term debt | 1,336,000 | 1,461,000 | ||
Revolving Credit Facility | ||||
Long-term debt and line of credit | ||||
Variable rate basis | Prime rate or LIBOR plus LIBOR Rate Margin | |||
Maximum borrowing capacity | 30,000,000 | |||
Outstanding credit facility | 20,100,000 | |||
Capacity borrowing availability | 9,900,000 | |||
Senior Secured Term Loan due Quarterly through November 2018 | ||||
Long-term debt and line of credit | ||||
Long-term debt | 53,625,000 | 54,900,000 | ||
Maximum borrowing capacity | $60,000,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 0 Months Ended |
Mar. 28, 2015 | Sep. 17, 2014 | |
item | ||
Loss Contingency [Abstract] | ||
Maximum period for purchase commitments for certain ingredients, packaging materials and energy | 12 months | |
Number of matters in which the entity is obligated and have agreed to indemnify and defend | 2 | |
The Lilly Matter | ||
Loss Contingency [Abstract] | ||
Litigation settlement amount to pay to each individual | $5,000 | |
Legal fees and costs that the company has to pay relating to the litigation | $425,000 |
Business_Segments_Details
Business Segments (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Dec. 27, 2014 |
segment | |||
Business segments and significant customers | |||
Number of reportable segments | 2 | ||
Net revenues from external customers | $77,607 | $67,509 | |
Depreciation and amortization included in segment gross profit | 1,162 | 1,052 | |
Segment gross profit | -3,700 | 11,563 | |
Goodwill | 23,286 | 23,286 | |
Reconciliation of reportable segment gross profit to consolidated income before income tax provision | |||
Segment gross profit | -3,700 | 11,563 | |
Operating expenses | 18,429 | 8,398 | |
Interest expense, net | 730 | 670 | |
Income (loss) before income tax | -22,859 | 2,495 | |
Frozen Products | |||
Business segments and significant customers | |||
Net revenues from external customers | 51,349 | 43,655 | |
Depreciation and amortization included in segment gross profit | 556 | 475 | |
Segment gross profit | -7,489 | 7,844 | |
Reconciliation of reportable segment gross profit to consolidated income before income tax provision | |||
Segment gross profit | -7,489 | 7,844 | |
Snack Products | |||
Business segments and significant customers | |||
Net revenues from external customers | 26,258 | 23,854 | |
Depreciation and amortization included in segment gross profit | 606 | 577 | |
Segment gross profit | 3,788 | 3,719 | |
Reconciliation of reportable segment gross profit to consolidated income before income tax provision | |||
Segment gross profit | $3,788 | $3,719 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Dec. 31, 2005 | |
Equity Incentive 2005 Plan | ||||
Shareholders equity | ||||
Number of shares reserved for issuance but unissued | 410,518 | |||
Number of shares authorized | 2,710,518 | 2,710,518 | ||
Restricted Stock And Restricted Stock Units Member | ||||
Additional disclosures | ||||
Share-based compensation expense | $200,000 | $100,000 | ||
Stock-based compensation costs which were capitalized | 0 | |||
Restricted Stock | ||||
Number of Shares | ||||
Nonvested at the beginning of the period (in shares) | 208,600 | |||
Vested (in shares) | -90,376 | |||
Forfeited (in shares) | -21,724 | |||
Nonvested at the end of the period (in shares) | 96,500 | 96,500 | ||
Weighted Average Grant Date Fair Value | ||||
Nonvested at the beginning of the period (in dollars per share) | $7.52 | |||
Vested (in dollars per share) | $6.55 | |||
Forfeited (in dollars per share) | $6.55 | |||
Nonvested at the end of the period (in dollars per share) | $8.65 | $8.65 | ||
Additional disclosures | ||||
Unrecognized costs related to non-vested stock awards granted | 400,000 | 400,000 | ||
Weighted average period for recognition of unrecognized compensation costs | 1 year 1 month 13 days | |||
Restricted Stock | Minimum | ||||
Shareholders equity | ||||
Vesting period | 1 year | |||
Restricted Stock | Maximum | ||||
Shareholders equity | ||||
Vesting period | 5 years | |||
Restricted Stock Units R S U [Member] | ||||
Number of Shares | ||||
Nonvested at the beginning of the period (in shares) | 144,929 | |||
Nonvested at the end of the period (in shares) | 144,929 | 144,929 | ||
Weighted Average Grant Date Fair Value | ||||
Nonvested at the beginning of the period (in dollars per share) | $13.21 | |||
Nonvested at the end of the period (in dollars per share) | $13.21 | $13.21 | ||
Additional disclosures | ||||
Unrecognized costs related to non-vested stock awards granted | 1,200,000 | 1,200,000 | ||
Weighted average period for recognition of unrecognized compensation costs | 2 years 3 months | |||
Stock Options | ||||
Shareholders equity | ||||
Expiration term of awards | 10 years | |||
Vesting period | 5 years | |||
Options Outstanding | ||||
Outstanding at the beginning of the period (in shares) | 732,852 | 719,852 | ||
Exercised (in shares) | -13,000 | |||
Outstanding at the end of the period (in shares) | 719,852 | 719,852 | ||
Weighted Average Exercise Price | ||||
Outstanding at the beginning of the period (in dollars per share) | $5.27 | $5.30 | ||
Exercised (in dollars per share) | $3.70 | |||
Outstanding at the end of the period (in dollars per share) | $5.30 | $5.30 | ||
Aggregate Intrinsic Value (in-the-money option) | ||||
Intrinsic value related to options outstanding | 4,229,251 | 4,229,251 | ||
Closing stock price (in dollars per share) | $11.05 | $11.05 | ||
Intrinsic value related to vested options outstanding | 2,800,000 | 2,800,000 | ||
Weighted Average Remaining Contractual Life | ||||
Weighted Average Remaining Contractual Life | 6 years 3 months 18 days | |||
Additional disclosures | ||||
Share-based compensation expense | 100,000 | 100,000 | ||
Weighted average period for recognition of unrecognized compensation costs | 2 years 2 months 12 days | |||
Unrecognized costs related to non-vested stock options awards granted | $800,000 | $800,000 | ||
Stock Options | Minimum | ||||
Shareholders equity | ||||
Vesting period | 1 year | |||
Stock Options | Maximum | ||||
Shareholders equity | ||||
Vesting period | 5 years |
Shareholders_Equity_Details_2
Shareholders' Equity (Details 2) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 28, 2015 |
Shareholders' Equity | |
Options Outstanding (in shares) | 719,852 |
Weighted Average Remaining Contractual Life | 6 years 3 months 18 days |
Weighted Average Exercise Price (in dollars per share) | $5.30 |
Options Exercisable (in shares) | 375,300 |
Weighted Average Exercise Price (in dollars per share) | $3.72 |
Stock Options | |
Shareholders' Equity | |
Expiration term of awards | 10 years |
Vesting period | 5 years |
Aggregate Intrinsic Value (in-the-money option) | |
Intrinsic value related to vested options outstanding | $2.80 |
Stock Options | Exercise Price Range From Dollars 1.70 to Dollars 3.20 | |
Shareholders' Equity | |
Exercise price, low end of range (in dollars per share) | $1.70 |
Exercise price, high end of range (in dollars per share) | $3.20 |
Options Outstanding (in shares) | 182,200 |
Weighted Average Remaining Contractual Life | 3 years 8 months 12 days |
Weighted Average Exercise Price (in dollars per share) | $1.91 |
Options Exercisable (in shares) | 179,600 |
Weighted Average Exercise Price (in dollars per share) | $1.90 |
Stock Options | Exercise Price Range From Dollars 3.44 to Dollars 4.28 | |
Shareholders' Equity | |
Exercise price, low end of range (in dollars per share) | $3.44 |
Exercise price, high end of range (in dollars per share) | $4.28 |
Options Outstanding (in shares) | 182,000 |
Weighted Average Remaining Contractual Life | 5 years 9 months 18 days |
Weighted Average Exercise Price (in dollars per share) | $3.91 |
Options Exercisable (in shares) | 100,000 |
Weighted Average Exercise Price (in dollars per share) | $3.89 |
Stock Options | Exercise Price Range From Dollars 6.55 to Dollars 7.21 | |
Shareholders' Equity | |
Exercise price, low end of range (in dollars per share) | $6.55 |
Exercise price, high end of range (in dollars per share) | $7.21 |
Options Outstanding (in shares) | 301,500 |
Weighted Average Remaining Contractual Life | 7 years 8 months 12 days |
Weighted Average Exercise Price (in dollars per share) | $6.92 |
Options Exercisable (in shares) | 92,200 |
Weighted Average Exercise Price (in dollars per share) | $6.87 |
Stock Options | Exercise Price Range From Dollars 7.61 to Dollars 13.21 | |
Shareholders' Equity | |
Exercise price, low end of range (in dollars per share) | $7.61 |
Exercise price, high end of range (in dollars per share) | $13.21 |
Options Outstanding (in shares) | 54,152 |
Weighted Average Remaining Contractual Life | 9 years 1 month 6 days |
Weighted Average Exercise Price (in dollars per share) | $12.33 |
Options Exercisable (in shares) | 3,500 |
Weighted Average Exercise Price (in dollars per share) | $9.09 |
Stock Options | Members Of Board | |
Shareholders' Equity | |
Vesting period | 1 year |
Prior to May 2008 | |
Shareholders' Equity | |
Expiration term of awards | 5 years |
Vesting period | 5 years |
Prior to May 2008 | Members Of Board | |
Shareholders' Equity | |
Vesting period | 1 year |
Minimum | Stock Options | |
Shareholders' Equity | |
Vesting period | 1 year |
Maximum | Stock Options | |
Shareholders' Equity | |
Vesting period | 5 years |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
Mar. 28, 2015 | Mar. 29, 2014 | Apr. 23, 2015 | |
Subsequent Event | |||
Net revenues | $77,607,000 | $67,509,000 | |
Cost of revenues | 81,307,000 | 55,946,000 | |
Gross profit | -3,700,000 | 11,563,000 | |
Operating expenses | |||
Selling, general and administrative expenses | 9,152,000 | 8,398,000 | |
Impairment of intangible asset | 9,277,000 | ||
Operating loss | -22,129,000 | 3,165,000 | |
Loss before income taxes | -22,859,000 | 2,495,000 | |
Income tax benefit | 8,224,000 | -898,000 | |
Net loss | -14,635,000 | 1,597,000 | |
Accrued product recall warranty | 10,379,000 | ||
Provision for bad debts | 55,000 | -18,000 | |
Subsequent Event | Voluntary Product Recall | |||
Operating expenses | |||
Inventory expense due to the recall | 4,900,000 | ||
Accrued product recall warranty | 10,400,000 | ||
Provision for bad debts | 200,000 | ||
Frozen Products | |||
Subsequent Event | |||
Net revenues | 51,349,000 | 43,655,000 | |
Gross profit | -7,489,000 | 7,844,000 | |
Fresh Frozen Line Of Frozen Vegetables And Select Jamba At Home Line | Subsequent Event | Voluntary Product Recall | |||
Subsequent Event | |||
Cost of revenues | 15,260,000 | ||
Gross profit | -15,260,000 | ||
Operating expenses | |||
Selling, general and administrative expenses | 233,000 | ||
Impairment of intangible asset | 9,277,000 | ||
Operating loss | -24,770,000 | ||
Loss before income taxes | -24,770,000 | ||
Income tax benefit | 8,882,000 | ||
Net loss | -15,888,000 | ||
Snack Products | |||
Subsequent Event | |||
Net revenues | 26,258,000 | 23,854,000 | |
Gross profit | 3,788,000 | 3,719,000 | |
Customer Relationships | Subsequent Event | Voluntary Product Recall | |||
Operating expenses | |||
Impairment of intangible asset | $9,300,000 |