Business
HF Foods Reports First Quarter 2020 Financial Results
CITY OF INDUSTRY, Calif., May 18, 2020 (GLOBE NEWSWIRE) -- HF Foods Group Inc. (NASDAQ: HFFG), a leading food distributor to Asian restaurants across the
About this update from Hf Foods Group Inc.
[{"type":"text","content":"CITY OF INDUSTRY, Calif., May 18, 2020 (GLOBE NEWSWIRE) -- HF Foods Group Inc. (NASDAQ: HFFG), a leading food distributor to Asian restaurants across the Southeast, Pacific and Mountain West regions of the United States, reported first quarter and pro forma financial results for the three months ended March 31, 2020.\n The pro forma results reflect the combined results of HF Foods Group and B&R Global Holdings (“B&R”) as if the transaction had occurred on the first day of the prior period presented. The merger was completed and announced in a press release on November 4, 2019. First Quarter 2020 Financial Summary (which includes the B&R transaction in Q1 2020 but not Q1 2019) Net revenue increased 135% to $175.8 million compared to $74.8 million in the first quarter of 2019.Gross profit was $29.0 million, or 16.5% of total revenue, compared to $12.7 million, or 17.0% of total revenue, in the first quarter of 2019.Net loss was $339.9 million, or $(6.52) per diluted share, and included a one-time goodwill impairment charge of $338.2 million. This compares to net income of $1.7 million, or $0.08 per diluted share, in the first quarter of 2019.Adjusted EBITDA increased 25% to $4.3 million compared to $3.5 million in the first quarter of 2019. Pro Forma First Quarter 2020 Financial Summary Pro forma net revenue decreased to $175.8 million from $209.0 million.Pro forma gross profit was $29.0 million, or 16.5% of total revenue, compared to $34.5 million, or 16.5% of total revenue, in the first quarter of 2019.Pro forma net loss was $339.9 million, or $(6.52) per diluted share, compared to net income of $2.7 million, or $0.05 per diluted share, in the first quarter of 2019.Pro forma adjusted EBITDA was $4.3 million compared to $10.0 million in the first quarter of 2019. “During the first two months of 2020, our business was relatively well-insulated from the COVID-19 pandemic,” said Zhou Min Ni, chairman and Co-CEO of HF Foods. “But we began to experience a gradual decline in sales towards the end of February, which intensified in the last two weeks of March as stay-at-home orders were instituted almost ubiquitously across the United States. Due to the forced closure or conversion to an exclusively take-out model for our restaurant clients, our pro forma sales declined approximately 67% in the last two weeks of March versus the same tim...