HF Foods (US:HFFG)2024-11-12 21:10Financial Performance - Net revenue for Q3 2024 increased by 6.0% to $298.4 million compared to $281.5 million in the prior year[2]. - Gross profit for Q3 2024 decreased by 1.5% to $50.2 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 $2.0 million in the prior year[2][8]. - Adjusted EBITDA for Q3 2024 decreased by 17.7% to $8.3 million compared to $10.1 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 $867.6 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 $4.2 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 $27.6 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, 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, 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 $3,837,000 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 $4,161 thousand, an improvement from a loss of $5,383 thousand in 2023, reflecting a change of $1,222 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 $4,899 thousand in 2023, reflecting a change of $282 thousand[28]. Cash Flow and Assets - Cash used in operating activities was $3.3 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, 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]. - Total current assets increased to $192,919,000 as of September 30, 2024, up from $178,827,000 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 $27.3 million in additional funds through its $100.0 million line of credit[15]. Liabilities and Debt Management - Total liabilities rose to $327,140,000 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, 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) 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, down from $10,097,000 in the same period of 2023, indicating a decrease of 17.8%[25]. - Adjusted EBITDA increased to $27,568 thousand in 2024 from $24,203 thousand in 2023, showing a growth of $3,365 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 $5,114 thousand in 2023, a decrease of $2,904 thousand[27]. - Stock-based compensation expense decreased to $1,961 thousand in 2024 from $2,605 thousand in 2023, a reduction of $644 thousand[28]. - Change in fair value of interest rate swaps improved to $959 thousand in 2024 from a loss of $2,094 thousand in 2023, a positive change of $3,053 thousand[28]. - Business transformation costs for 2024 were $1,180 thousand, an increase from $402 thousand in 2023, reflecting a change of $778 thousand[28]. - Other non-routine expenses decreased to $584 thousand in 2024 from $1,850 thousand in 2023, a reduction of $1,266 thousand[28]. - Amortization of intangibles remained relatively stable at $12,210 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].