Core Viewpoint - HF Foods Group Inc. reported breakeven earnings per share in Q2 2024, a significant improvement from a loss of 2 cents in the same period last year [1] Revenue Details - HF Foods generated revenues of $302.3 million in Q2 2024, reflecting a 3.4% year-over-year increase [2] - The revenue growth was driven by product cost inflation, volume increases, and improved pricing in categories like chicken and seafood, although partially offset by deflation in commodities such as cooking oils and a $3.1 million revenue loss from exiting chicken processing businesses in 2023 [2] Gross Margin Analysis - Gross profit for the quarter rose by 3.6% to $52.5 million, with gross margin expanding by 10 basis points to 17.4% [3] Operating Expenses - Distribution, selling, and administrative expenses decreased by 4.6% to $49.8 million, mainly due to a $5.5 million reduction in professional fees, though this was partially countered by higher payroll and labor costs [4] Profitability Metrics - Income from operations in Q2 totaled $2.6 million, a turnaround from an operating loss of $1.6 million in the prior year [5] - Net income for the quarter was $0.2 million, compared to a net loss of $1.6 million year-over-year, driven by a $4.2 million increase in operating income and a $5.3 million reversal of lease guarantee liability, despite setbacks from a $3.9 million SEC settlement and other factors [6] Adjusted EBITDA - Adjusted EBITDA for the quarter was $10.6 million, marking a 26.4% increase from the same quarter last year, primarily due to higher income from operations [7] Liquidity and Debt Management - At the end of Q2 2024, HF Foods had cash of $13.9 million, down from $18.2 million at the end of Q1 2024 [8] - Total debt at the end of Q2 2024 was $111.4 million, slightly down from $112.8 million at the end of Q1 2024 [8] - Cumulative net cash used in operating activities was $0.02 million, a decline from $8.7 million in net cash provided by operating activities a year ago [8] Overall Assessment - HF Foods showed encouraging results in both top-line and bottom-line metrics for Q2 2024, with promising volume increases and improved pricing [9] - However, the deflation in commodities during the quarter presents a concern [9]

Revenue Performance - Net revenue for Q2 2024 increased by 3.4% to $302.3 million compared to $292.3 million in the prior year[1]. - For the first six months of 2024, net revenue increased by 2.0% to $598.0 million compared to $586.2 million in the prior year[2][7]. - Net revenue for Q2 2024 was $302,342, an increase of 3.5% compared to $292,312 in Q2 2023[17]. Profitability - Gross profit for Q2 2024 rose by 3.6% to $52.5 million, with a gross profit margin of 17.4%, up from 17.3% in the prior year[1][4]. - Gross profit for the first six months of 2024 was $102.9 million, a 2.0% increase from $100.8 million in the prior year, with a flat gross profit margin of 17.2%[2][7]. - Gross profit for the six months ended June 30, 2024, was $102,876, up from $100,838 in the same period of 2023, reflecting a growth of 2.0%[17]. - Adjusted EBITDA for Q2 2024 increased by 26.4% to $10.6 million, compared to $8.4 million in the prior year[1][6]. - EBITDA for the six months ended June 30, 2024, was $20,313, significantly higher than $9,470 in the same period of 2023, representing an increase of 114.5%[20]. - Adjusted EBITDA for Q2 2024 was $10,561, compared to $8,357 in Q2 2023, marking a growth of 26.3%[19]. Net Income - Net income improved to $0.2 million in Q2 2024, compared to a net loss of $1.6 million in the prior year[1][5]. - Net income attributable to HF Foods Group Inc. for Q2 2024 was $17, a recovery from a loss of $850 in Q2 2023[21]. - Non-GAAP net income attributable to HF Foods Group Inc. for the six months ended June 30, 2024, was $4,632, compared to $3,248 in the same period of 2023, an increase of 42.5%[22]. Expenses - Distribution, selling, and administrative expenses decreased by $4.8 million to $100.3 million for the first six months of 2024[8]. - Distribution, selling, and administrative expenses decreased to $49,840 in Q2 2024 from $52,243 in Q2 2023, a reduction of 4.8%[17]. - Interest expense increased to $5,953 for the six months ended June 30, 2024, from $5,715 in the same period of 2023, reflecting a rise of 4.2%[20]. Cash Flow and Liquidity - Cash flow from operating activities decreased to $0.0 million for the first six months of 2024, down from $8.7 million in the prior year[10]. - The company reported a net cash used in operating activities of $17 for the six months ended June 30, 2024, compared to $8,732 provided in the same period of 2023[18]. - As of June 30, 2024, the company had a cash balance of $14.0 million and access to approximately $29.9 million through its line of credit[10]. - Cash at the end of the period was $13,968, a decrease from $14,946 at the end of the same period in 2023[18]. Operational Improvements - The company is implementing a modern ERP solution across its distribution centers, with completion expected by the end of the year[3].

Core Viewpoint - HF Foods Group Inc. has appointed Maria Ross to its board of directors, replacing Dr. Hong Wang, which maintains the board's composition of four independent directors and the CEO, Peter Zhang [1][2]. Company Overview - HF Foods Group Inc. is a prominent food distributor catering primarily to Asian restaurants across the United States, providing fresh produce, frozen and dry food, and non-food products [4]. - The company aims to meet the growing demand for Asian American cuisine by leveraging its extensive distribution network and strong relationships with growers and suppliers in the US, South America, and China [4]. New Board Member Profile - Maria Ross brings over 30 years of experience in supply chain management, having held significant roles in companies such as Nike, The Fresh Market, BJ's Wholesale Club, Oldcastle, Inc., and The Home Depot [3]. - Her expertise in supply chain and logistics is expected to be a valuable asset to the company [4].

As a result of the appointments of Ms. Lim and Ms. Westfall, the Company's board of directors will now include four independent directors and Mr. Peter Zhang, the CEO of the Company. Ms. Westfall is a corporate partner based in the San Francisco office of a US global law firm. As a corporate and securities attorney, Ms. Westfall counsels public companies on corporate governance, securities compliance and mergers and acquisitions. In addition, Ms. Westfall advises clients on US-China cross-border business tr ...

LAS VEGAS, June 10, 2024 (GLOBE NEWSWIRE) -- HF Foods Group Inc. (NASDAQ: HFFG) ("HF Foods", or the "Company"), a leading food distributor to Asian restaurants across the United States, today announced the appointment of Lisa Lim and Charlotte Westfall to the Company's board of directors effective June 7, 2024. Forward-Looking Statements Ms. Westfall is a corporate partner based in the San Francisco office of a US global law firm. As a corporate and securities attorney, Ms. Westfall counsels public companie ...

Core Viewpoint - HF Foods Group Inc. has resolved a formal investigation by the SEC regarding allegations of securities law violations by the company and its former executives, allowing the company to focus on future business expansion and ethical operations [1][4]. Group 1: SEC Investigation and Settlement - The SEC's investigation concluded with the acceptance of the company's Offer of Settlement, which was influenced by the company's prompt remedial actions and cooperation during the investigation [2]. - The SEC filed charges against two former executives on June 3, 2024, leading to their agreement to pay civil fines and disgorgement, as well as being subject to officer and director bars [2]. - The company neither admitted nor denied the SEC's findings but consented to an administrative civil cease-and-desist order regarding violations of multiple sections of the Securities Act and Securities Exchange Act, resulting from misleading disclosures and fraudulent conduct by former executives [3]. Group 2: Financial Implications - As part of the settlement, the company agreed to pay a civil monetary penalty of $3.9 million [3]. Group 3: Company Overview - HF Foods Group Inc. is a leading distributor of food products to Asian restaurants in the U.S., focusing on fresh produce, frozen and dry food, and non-food products [6]. - The company aims to meet the growing demand for Asian American cuisine by leveraging its distribution network and relationships with suppliers in the U.S., South America, and China [6].

Peter Zhang, Chief Executive Officer of HF Foods, said: "HF Foods is pleased to put this matter relating to the conduct of the Company's former executives behind us. We are now focused on expanding the business and operating the Company in a manner that is ethical and consistent with the principles and values that are so important to the Company's future success." Investor Relations Contact: HF Foods Group Inc. is a leading marketer and distributor of fresh produce, frozen and dry food, and non-food product ...

Zacks Investment Research has recently initiated coverage of HF Foods Group Inc. (HFFG) , assigning an "Outperform" recommendation to the company's shares. This bullish stance reflects the company's strategic transformation and robust positioning within the burgeoning Chinese takeout market in North America. HF Foods Group, headquartered in Las Vegas, NV, has carved a niche in the foodservice distribution for Asian restaurants across the United States. With a significant footprint that includes 18 distribut ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________________ to _______________________. Commission File Number: 001-38180 __________________________________________________________________________ ...

Financial Data and Key Metrics Changes - Net revenue for the first quarter increased 0.6% to $295.7 million, compared to $293.9 million in the prior year quarter, driven by product cost inflation and improved pricing, partially offset by a $2.7 million loss from exiting chicken processing businesses [25] - Adjusted EBITDA increased approximately 51.4% to $8.7 million for the first quarter, compared to $5.7 million for the prior year quarter, primarily due to lower distribution, selling, and administrative expenses [4] - Net loss improved to $0.6 million for the first quarter, compared to a net loss of $5.8 million for the prior year quarter, driven by lower distribution, selling, and administrative costs, and higher gross profit [17] Business Line Data and Key Metrics Changes - Gross profit increased by 0.5% to $50.4 million for the quarter, compared to $50.2 million in the prior year quarter, with gross profit margins approximately flat at 17.1%, driven by improvements in the Seafood category due to a centralized purchasing plan [15] - Distribution, selling, and administrative expenses decreased approximately 4.6% to $50.5 million for the first quarter from $52.9 million for the first quarter of 2023, with expenses as a percentage of net revenue decreasing to 17.1% from 18% [26] Market Data and Key Metrics Changes - The company has completed a network and facility optimization study for its distribution network and has moved into phase one of facility upgrades, including two new state-of-the-art facilities in the Southeast region [6] Company Strategy and Development Direction - The company is focused on executing a comprehensive transformation plan aimed at enhancing operational efficiencies to deliver sustainable long-term growth, having established itself as an enterprise generating over $1.1 billion in annual net revenue [7] - The company is actively exploring M&A opportunities for geographic expansion, focusing on targets that will allow for meaningful synergies [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the solid groundwork made on the transformation plan, indicating that all key focus areas are on track for significant growth or cost reduction for years to come [30] - The company is excited about its digital transformation, with a modern ERP solution implementation expected to be completed by the end of 2024, enhancing operational efficiency and adaptability [19] Other Important Information - The company launched a national fuel savings program in March 2024 to maximize efficiency and reduce fuel costs, with plans to replace roughly 25% of its existing fleet by the end of 2024 [29] - At the end of the first quarter, the company had available capacity of $40.9 million in additional funds through its line of credit, indicating a strong liquidity position [28] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.