HF Foods (HFFG) - 2025 Q1 - Quarterly Results

Financial Performance - Net revenue for Q1 2025 was $298.4 million, a 0.9% increase from $295.7 million in Q1 2024[4] - Gross profit rose to $51.0 million, up 1.1% from $50.4 million in the prior year, maintaining a gross profit margin of 17.1%[5] - Adjusted EBITDA increased by 12.3% to $9.8 million compared to $8.7 million in the prior year[9] - Net revenue for Q1 2025 was $298,428,000, a slight increase of 0.6% compared to $295,654,000 in Q1 2024[23] - Gross profit for Q1 2025 was $50,959,000, compared to $50,411,000 in Q1 2024, reflecting a growth of 1.1%[23] - Adjusted EBITDA for Q1 2025 was $9,773,000, up 12.3% from $8,702,000 in Q1 2024[27] Operating Expenses and Losses - Operating expenses decreased slightly to 16.7% of net revenue, down from 17.1% in the prior year[10] - Net loss for Q1 2025 was $1.5 million, compared to a net loss of $0.6 million in Q1 2024, primarily due to changes in interest rate swap contracts[11] - Net loss attributable to HF Foods Group Inc. increased to $1,645,000 in Q1 2025 from $694,000 in Q1 2024, representing a 37.5% increase[30] - Total other expenses (income), net for Q1 2025 was $3,616,000, compared to $655,000 in Q1 2024, indicating a significant increase in expenses[23] - The company incurred $973,000 in costs related to executive transition and organizational redesign in Q1 2025[30] Cash Flow and Assets - Cash provided by operating activities was $6.9 million, down from $11.2 million in the prior year, attributed to working capital timing[13] - Cash provided by operating activities decreased to $6,948,000 in Q1 2025 from $11,224,000 in Q1 2024, a decline of 38.5%[25] - The company reported a decrease in cash at the end of the period to $16,099,000 from $18,215,000 in the previous year[25] - As of March 31, 2025, the company had cash of $16.1 million and access to approximately $60.0 million through a line of credit[13] - Total assets increased to $581.9 million as of March 31, 2025, compared to $550.0 million at the end of 2024[22] Strategic Focus - The company is focused on enhancing margins and executing strategic technology investments to support long-term profitability[6] - HF Foods aims to navigate macroeconomic challenges while positioning itself for sustained growth through operational discipline and targeted customer growth[7] Share Information - The weighted average shares for basic and diluted were 52,737,650 in Q1 2025, compared to 52,155,968 in Q1 2024, an increase of 1.1%[23] - Interest expense decreased to $2,609,000 in Q1 2025 from $2,834,000 in Q1 2024, a reduction of 7.9%[27]