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HF Foods (HFFG) - 2024 Q3 - Quarterly Results
HFFGHF Foods (HFFG)2024-11-12 21:10

Financial Performance - Net revenue for Q3 2024 increased by 6.0% to 298.4millioncomparedto298.4 million compared to 281.5 million in the prior year[2]. - Gross profit for Q3 2024 decreased by 1.5% to 50.2million,withagrossprofitmargindeclineto16.850.2 million, with a gross profit margin decline to 16.8% from 18.1% in the prior year[2][6]. - The company reported a net loss of 3.8 million in Q3 2024, compared to a net income of 2.0millionintheprioryear[2][8].−AdjustedEBITDAforQ32024decreasedby17.72.0 million in the prior year[2][8]. - Adjusted EBITDA for Q3 2024 decreased by 17.7% to 8.3 million compared to 10.1millionintheprioryear[2][9].−FortheninemonthsendedSeptember30,2024,netrevenueincreasedby3.310.1 million in the prior year[2][9]. - For the nine months ended September 30, 2024, net revenue increased by 3.3% to 896.4 million compared to 867.6millionintheprioryear[3][10].−Grossprofitfortheninemonthsincreasedby0.8867.6 million in the prior year[3][10]. - Gross profit for the nine months increased by 0.8% to 153.0 million, with a gross profit margin decrease to 17.1% from 17.5% in the prior year[3][11]. - The net loss for the nine months improved to 4.2millionfromalossof4.2 million from a loss of 5.4 million in the prior year[3][13]. - Adjusted EBITDA for the nine months increased by 13.9% to 27.6millioncomparedto27.6 million compared to 24.2 million in the prior year[3][14]. - Net revenue for the three months ended September 30, 2024, was 298,389,000,a6.9298,389,000, a 6.9% increase from 281,453,000 in the same period of 2023[23]. - Gross profit for the three months ended September 30, 2024, was 50,163,000,slightlydownfrom50,163,000, slightly down from 50,925,000 in the prior year, resulting in a gross margin of 16.8%[23]. - The company reported a net loss of 3,837,000forthethreemonthsendedSeptember30,2024,comparedtoanetincomeof3,837,000 for the three months ended September 30, 2024, compared to a net income of 1,974,000 in the same period of 2023[23]. - Net loss for 2024 was 4,161thousand,animprovementfromalossof4,161 thousand, an improvement from a loss of 5,383 thousand in 2023, reflecting a change of 1,222thousand[26].−ThenetlossattributabletoHFFoodsGroupInc.fortheninemonthsendedSeptember30,2024,was1,222 thousand[26]. - The net loss attributable to HF Foods Group Inc. for the nine months ended September 30, 2024, was 4,617 thousand, an improvement from a loss of 4,899thousandin2023,reflectingachangeof4,899 thousand in 2023, reflecting a change of 282 thousand[28]. Cash Flow and Assets - Cash used in operating activities was 3.3millionfortheninemonthsendedSeptember30,2024,comparedtocashprovidedof3.3 million for the nine months ended September 30, 2024, compared to cash provided of 20.6 million in the prior year[15]. - Cash at the end of the period was 11,445,000,adecreasefrom11,445,000, a decrease from 15,232,000 at the beginning of the period, reflecting a net cash used in operating activities of 3,299,000[24].−Totalcurrentassetsincreasedto3,299,000[24]. - Total current assets increased to 192,919,000 as of September 30, 2024, up from 178,827,000attheendof2023,primarilydrivenbyhigheraccountsreceivableandinventories[22].−Thecompanyhadacashbalanceof178,827,000 at the end of 2023, primarily driven by higher accounts receivable and inventories[22]. - The company had a cash balance of 11.4 million and access to approximately 27.3millioninadditionalfundsthroughits27.3 million in additional funds through its 100.0 million line of credit[15]. Liabilities and Debt Management - Total liabilities rose to 327,140,000asofSeptember30,2024,comparedto327,140,000 as of September 30, 2024, compared to 308,537,000 at the end of 2023, reflecting an increase in current liabilities[22]. - The current portion of long-term debt remained stable at 5,410,000,comparedto5,410,000, compared to 5,450,000 at the end of 2023, showing effective debt management[22]. - The company reported a decrease in accumulated deficit to (313,305,000)asofSeptember30,2024,from(313,305,000) as of September 30, 2024, from (308,688,000) at the end of 2023, indicating ongoing financial challenges[22]. Adjusted Metrics and Expenses - Adjusted EBITDA for the three months ended September 30, 2024, was 8,305,000,downfrom8,305,000, down from 10,097,000 in the same period of 2023, indicating a decrease of 17.8%[25]. - Adjusted EBITDA increased to 27,568thousandin2024from27,568 thousand in 2024 from 24,203 thousand in 2023, showing a growth of 3,365thousand[26].−Non−GAAPnetincomeattributabletoHFFoodsGroupInc.forthethreemonthsendedSeptember30,2024,was3,365 thousand[26]. - Non-GAAP net income attributable to HF Foods Group Inc. for the three months ended September 30, 2024, was 2,210 thousand, down from 5,114thousandin2023,adecreaseof5,114 thousand in 2023, a decrease of 2,904 thousand[27]. - Stock-based compensation expense decreased to 1,961thousandin2024from1,961 thousand in 2024 from 2,605 thousand in 2023, a reduction of 644thousand[28].−Changeinfairvalueofinterestrateswapsimprovedto644 thousand[28]. - Change in fair value of interest rate swaps improved to 959 thousand in 2024 from a loss of 2,094thousandin2023,apositivechangeof2,094 thousand in 2023, a positive change of 3,053 thousand[28]. - Business transformation costs for 2024 were 1,180thousand,anincreasefrom1,180 thousand, an increase from 402 thousand in 2023, reflecting a change of 778thousand[28].−Othernon−routineexpensesdecreasedto778 thousand[28]. - Other non-routine expenses decreased to 584 thousand in 2024 from 1,850thousandin2023,areductionof1,850 thousand in 2023, a reduction of 1,266 thousand[28]. - Amortization of intangibles remained relatively stable at 12,210thousandin2024comparedto12,210 thousand in 2024 compared to 12,213 thousand in 2023[28]. - SEC settlement recognized in 2024 amounted to $3,900 thousand, with no prior year comparison available[28].