HF Foods (HFFG)2025-03-13 20:31Revenue - Net revenue for Q4 2024 was $305.3 million, an increase of 8.7% from $280.9 million in the prior year period[3] - Full year 2024 net revenue increased 4.6% to $1,201.7 million compared to $1,148.5 million in the prior year[9] - Net revenue for Q4 2024 was $305.3 million, a 8.7% increase from $280.9 million in Q4 2023[26] Gross Profit - Gross profit for Q4 2024 was $52.2 million, a slight decrease of 0.2% from $52.3 million in the prior year[4] - Full year 2024 gross profit increased 0.6% to $205.2 million compared to $204.0 million in the prior year[10] - Gross profit for the year ended December 31, 2024, was $205.2 million, slightly up from $204.0 million in 2023[26] Net Loss - The company reported a net loss of $43.9 million for Q4 2024, primarily due to a goodwill impairment of $46.3 million[7] - Full year 2024 net loss was $48.1 million, compared to a net loss of $2.7 million in the prior year[12] - The company reported a net loss of $48.1 million for the year 2024, compared to a net loss of $2.7 million in 2023[29] - For the three months ended December 31, 2024, HF Foods Group Inc. reported a net loss of $43.894 million, a decrease of $46.619 million compared to a net income of $2.725 million in the same period of 2023[32] - For the year ended December 31, 2024, the net loss attributable to HF Foods Group Inc. was $48.511 million, a decline of $46.337 million from a loss of $2.174 million in 2023[32] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 increased 39.4% to $14.5 million compared to $10.4 million in the prior year[8] - Full year 2024 adjusted EBITDA increased 21.6% to $42.0 million compared to $34.6 million in the prior year[13] - Adjusted EBITDA for the year ended December 31, 2024, was $42.0 million, an increase of 21.5% from $34.6 million in 2023[29] Expenses - Distribution, selling and administrative expenses for Q4 2024 increased to $48.0 million, representing 15.7% of net revenue[6] - Distribution, selling, and administrative expenses rose to $198.0 million for the year 2024, compared to $195.1 million in 2023[26] Cash Flow - Cash provided by operating activities was $22.6 million for the year ended December 31, 2024, compared to cash used in operating activities of $1.6 million in the prior year[14] - Cash at the end of the period was $14.5 million, down from $15.2 million at the end of 2023[28] Assets and Liabilities - Total assets decreased to $550.0 million in 2024 from $596.5 million in 2023[24] - Total liabilities remained relatively stable at $308.7 million in 2024, compared to $308.5 million in 2023[24] - The company experienced a significant increase in accounts receivable, rising to $54.3 million in 2024 from $47.8 million in 2023[24] Non-GAAP Measures - Non-GAAP net income for the same period was $6.062 million, an increase of 109.5% from $2.894 million in 2023[32] - Non-GAAP net income for the year was $13.968 million, up 38.9% from $10.057 million in 2023[32] - Non-GAAP diluted earnings per share for the year increased to $0.26, up $0.07 from $0.19 in 2023[32] Goodwill Impairment - Goodwill impairment charges amounted to $46.3 million in Q4 2024, with no such charges reported in Q4 2023[26] - Goodwill impairment charges amounted to $46.303 million for both the three months and year ended December 31, 2024[32] Other Costs - The company incurred $2.929 million in executive transition and organizational redesign costs during the year[32] - The company recorded a legal settlement recovery of approximately $10.0 million, which was accounted for as a recovery of previously recorded expenses[33] Tax Rate - The effective tax rate used for adjustments was 24.0% for both the fourth quarter and year-to-date periods of 2024 and 2023[33]