Company: HFFG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001680873-25-000074
Chunk: 38

Company: HF Foods Group Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 38
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 Attributable to HF Foods Group, Inc.

Net loss attributable to HF Foods Group Inc. was $1.5 million for the nine months ended September 30, 2025, compared to net loss of $4.6 million for the nine months ended September 30, 2024. The improvement of $3.1 million was primarily driven by an increase in income from operations of $3.3 million compared to the prior year period; however, the prior year’s results included a one time gain from lease guarantee income offset by an SEC settlement within other expense, which did not recur in the current year, thereby partially offsetting the year-over-year improvement.

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EBITDA and Adjusted EBITDA

The following table reconciles EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure:

Nine Months Ended September 30, ($ in thousands)20252024ChangeNet loss$(1,894)$(4,161)$2,267Interest expense, net8,3318,597(266)Income tax expense (benefit)(1,171)164(1,335)Depreciation and amortization21,26919,9321,337EBITDA26,53524,5322,003Lease guarantee income—(5,548)5,548Change in fair value of interest rate swap contracts1,916959957Stock-based compensation expense 1,6181,961(343)SEC settlement—3,900(3,900)Business transformation costs (1)2,4581,1801,278Other non-routine expense (2)449584(135)Executive transition and organizational redesign (3)2,390—2,390Adjusted EBITDA$35,366$27,568$7,798

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(1)    Represents costs associated with the launch and continued implementation of strategic projects including supply chain management improvements and technology infrastructure initiatives.

(2)    Includes contested proxy and related legal and consulting costs and facility closure costs.

(3)    Includes severance and related expenses for the Company’s transition of executive officers and organizational redesign.

Liquidity and Capital Resources

As of September 30, 2025, we had cash of approximately $12.3 million, checks issued not presented for payment of $2.1 million and access to approximately $49.8 million in additional funds through our $125.0 million line of credit, subject to a borrowing base calculation.