Innovative Food Holdings, Inc. Reports Financial Results for First Quarter of 2025
Key First Quarter data points:
-- Revenue of $19.5 million, +26.0% vs. Q1 2024
-- Organic revenue growth (1) of +22.9% vs. Q1 2024
-- Gross margin declined by 157 basis points vs. Q1 2024 to 22.9%
-- GAAP net income (loss) from continuing operations of ($0.4) million vs.
$1.4 million in Q1 2024
-- GAAP net income (loss) from continuing operations per fully diluted share
of ($0.008) vs. $0.028 in Q1 2024
-- Non-GAAP adjusted net income (loss) from continuing operations of $49
thousand vs. $161 thousand in Q1 2024
-- Non-GAAP adjusted net income (loss) per fully diluted share of $0.001 vs.
$0.003 in Q1 2024
-- Non-GAAP adjusted EBITDA of $346 thousand vs. $486 thousand in Q1 2024
-- Announced new cheese business with an international airline, and
relocated LoCo Foods business from Fort Collins to Denver
-- New retail sales channel generated $3.7 million in revenue
-- (1) Organic revenue growth excludes the impact of divestitures and
acquisitions
BROADVIEW, Ill., May 15, 2025 (GLOBE NEWSWIRE) -- Innovative Food Holdings, Inc. (OTCQB: IVFH) ("IVFH" or the "Company"), a national seller of gourmet specialty foods to professional chefs, today reported its financial results for the first quarter of 2025.
Bill Bennett, Chief Executive Officer of IVFH, remarked, "The first quarter of 2025 marked additional progress against our strategic plan as we continued the second phase of our growth strategy (building the foundation for growth). Contributing to these efforts, this was our first full quarter focused on the integration of our recent acquisition of Denver-based Golden Organics and Fort Collins-based LoCo Food Distribution, and our first full quarter of our new retail sales channel. We also continue to see strong growth with our new national distributor partner announced last Spring, triple-digit growth in our Amazon sales channel, single-digit growth in our airline catering business, and single-digit growth in our Chicago Artisan business. These growth initiatives were offset by continued softness in our legacy drop ship business. Returning this business to growth through significant catalog expansion is a key initiative for the entire management team, since it continues to represent the majority of the company's revenues. Also, while our new acquisitions are adding incremental topline growth, we were still in the process of stabilizing both new businesses in Q1, as we worked through the relocation of the LoCo business from Fort Collins to Denver, and worked to build out the team and design and implement our operational playbook. Taken together, these trends resulted in revenue growing 26.0% compared to Q1 2024. Organic revenue growth, which excludes the impact of divestitures and acquisitions, was +22.9% for the quarter."
Mr. Bennett continued, "Despite a decline in gross margin by 157 basis points to 22.9% as our business mix shifted towards the lower-margin retail business, gross margin dollars rose by $0.7 million on an additional $4.0 million in revenue. SG&A increased by $0.7 million, but SG&A as a percentage of revenue declined by 155 basis points to 24.1%. SG&A excluding non-cash stock compensation, separation, restructuring, and other legal and transactional costs as shown in Adjusted EBITDA, decreased by 36 basis points to 21.7% of revenue. GAAP Net Income from continuing operations was a loss of $0.4 million vs. a gain of $1.4 million in Q1 2024 when we recorded the $1.8M gain from the sale of our Florida headquarters building. Adjusted EBITDA was $346 thousand vs. $486 thousand in Q1 2024, despite the profit headwind driven by the ramp-up of the retail business. This headwind was approximately $425 thousand in Q1 2025, compared to the Q4 2024 headwind of approximately $700 thousand, as we made progress on the operational cost structure of this new, large business. We remain confident we can achieve profitability in the cheese business as the year progresses."
Mr. Bennett added, "We're pleased to see our new growth businesses and acquisitions begin to materialize this quarter and demonstrate the growth potential of the Company, though we also see an opportunity to continue to make progress on the operating models of our retail cheese business and our new acquisitions. The Company has a solid foundation, a passionate and committed team, and an industry with tremendous long-term potential. We recognize the importance of maintaining a laser focus on our top priorities in a complex economic environment to create a robust, profitable, and sustainable business model. As we navigate the ever-changing landscape of the food industry, we believe in our ability to adapt, innovate, and capitalize on opportunities focused on driving long-term shareholder value," concluded Mr. Bennett.
Conference Call
The Company's management will hold an investor call on May 15, 2025 at 10:00 am Eastern Time to discuss the Company's results for the first quarter ended March 31, 2025. At the end of the meeting, the Company will host a question-and-answer session with investors. All interested participants may attend the call on the web or by phone. The Company encourages those who wish to ask questions to join the call virtually through Zoom, rather than on the phone, as Zoom's "raise hand" feature makes it easier for management to identify questioners. Details for the meeting are as follows:
Join Zoom Meeting: https://us02web.zoom.us/j/88587278031?pwd=HMHKzdgPhohu0bqftzuIaMfHbAZTWF.1
Meeting ID: 885 8727 8031
Passcode: 343676
One tap mobile: +16694449171,,88587278031# US
About Innovative Food Holdings, Inc.
At IVFH, we help make meals special. We provide access to foods that are hard to find, have a compelling story, or are on the forefront of food trends. Our gourmet foods marketplace connects the world's best artisan food makers with top professional chefs nationwide. We curate the assortment, experience, and tech enabled tools that help our professional chefs create unforgettable experiences for their guests. Additional information is available at www.ivfh.com.
Forward-Looking Statements
This release contains certain forward-looking statements and information relating to the Company that are based on the current beliefs of the Company's management, as well as assumptions made by, and information currently available to, the Company. Such statements, including those related to the Company's growth plans, reflect the current views of the Company with respect to future events and are subject to certain assumptions, including those described in this release. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein, which include words such as "should," "could," "will," "anticipate," "believe," "intend," "plan," "might," "potentially" "targeting" or "expect", or similar expressions. Additional factors that could also cause actual results to differ materially relate to current conditions and expected future developments, international crises, environmental and economic issues and other risk factors described in the Company's public filings. As a result, readers are cautioned not to place undue reliance on these forward-looking statements and should understand that these statements are not guarantees of performance or results and that there are a number of risks, uncertainties and other important factors, many of which are beyond the Company's control, that could cause the Company's actual results to differ materially from those expressed in these statements, including, among others: economic factors affecting consumer confidence and discretionary spending; cost inflation/deflation and commodity volatility; competition; reliance on third party suppliers and interruption of product supply or increases in product costs; and changes in the Company's relationships with vendors and customers. The Company does not intend to update these forward-looking statements.
For a detailed discussion of these risks, uncertainties and other factors that could cause the Company's actual results to differ materially from those anticipated or expressed in any forward-looking statements, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission ("SEC"). Additional risks and uncertainties are discussed from time to time in current, quarterly and annual reports filed by the Company with the SEC, which are available on the SEC's website at https://www.sec.gov/.
Investor and Media contact:
Gary Schubert
Chief Financial Officer Innovative Food Holdings, inc. investorrelations@ivfh.com
Innovative Food Holdings, Inc. Consolidated Balance
Sheets (unaudited)
March 31, December 31,
2025 2024
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 1,105,274 $ 2,330,880
Accounts receivable, net 7,494,670 9,039,232
Inventory, net 6,796,302 6,290,488
Other current assets 349,918 238,526
Assets held for sale 5,941,933 5,941,933
Current assets - discontinued
operations - 49,315
----------- -----------
Total current assets 21,688,097 23,890,374
Property and equipment, net 1,690,084 1,584,878
Right of use assets - operating
leases, net 644,007 705,476
Right of use assets - finance
leases, net 494,390 524,273
Amortizable intangible assets,
net 402,794 424,372
Tradenames and other
unamortizable intangible
assets 217,000 217,000
----------- -----------
Total assets $ 25,136,372 $ 27,346,373
=========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable and accrued
liabilities $ 4,989,390 $ 6,653,622
Accrued separation costs,
related parties, current
portion 308,891 334,532
Accrued interest 91,155 91,347
Deferred revenue 347,700 349,600
Stock appreciation rights
liability 1,413,745 1,353,150
Notes payable - current portion 179,981 190,052
Lease liability - operating
leases, current 241,317 239,660
Lease liability - finance
leases, current 110,994 147,797
Contingent liability, current 54,430 54,430
----------- -----------
Total current liabilities 7,737,603 9,414,190
Note payable, net of discount 8,658,425 8,692,674
Accrued separation costs,
related parties, non-current 400,000 457,692
Lease liability - operating
leases, non-current 407,072 467,569
Lease liability - finance
leases, non-current 87,850 139,591
----------- -----------
Total liabilities 17,290,950 19,171,716
Commitments & Contingencies (see
note 21)
Stockholders' equity
Common stock: $0.0001 par
value; 500,000,000 shares
authorized; 56,831,090 and
56,009,032 shares issued, and
53,986,793 and 53,164,735
shares outstanding at March
31, 2025 and December 31,
2024, respectively 5,680 5,598
Common stock to be issued;
798,891 and 738,032 shares at
March 31, 2025 and December
31, 2024, respectively 79 74
Additional paid-in capital 45,621,235 45,520,121
Treasury stock: 2,644,297
shares outstanding at March
31, 2025 and December 31,
2024 (1,141,372) (1,141,372)
Accumulated deficit (36,640,200) (36,209,764)
----------- -----------
Total stockholders' equity 7,845,422 8,174,657
----------- -----------
Total liabilities and stockholders'
equity $ 25,136,372 $ 27,346,373
=========== ===========
Innovative Food Holdings, Inc.
Consolidated Statements of Operations (unaudited)
For the Three For the Three
Months Ended Months Ended
March 31, March 31,
2025 2024
--------------- ---------------
Revenue $ 19,548,566 $ 15,518,153
Cost of goods sold 15,062,759 11,713,219
----------- -----------
Gross margin 4,485,807 3,804,934
Selling, general and
administrative expenses 4,708,977 3,978,840
----------- -----------
Total operating expenses 4,708,977 3,978,840
Operating income (loss) (223,170) (173,906)
Other income (expense:)
Interest expense, net (209,166) (215,450)
Gain on sale of assets - 1,807,516
Gain (loss) on sale of
subsidiary - 21,126
Other leasing income 1,900 1,900
----------- -----------
Total other income (expense) (207,266) 1,615,092
Net income (loss) before taxes (430,436) 1,441,186
Income tax expense - -
----------- -----------
Net income (loss) from continuing
operations $ (430,436) $ 1,441,186
Net income (loss) from
discontinued operations $ - $ (15,312)
----------- -----------
Consolidated net income (loss) $ (430,436) $ 1,425,874
=========== ===========
Net income (loss) per share from
continuing operations -- basic $ (0.008) $ 0.029
=========== ===========
Net income (loss) per share from
continuing operations -- diluted $ (0.008) $ 0.028
=========== ===========
Net (loss) per share from
discontinued operations -- basic $ - $ (0.00)
=========== ===========
Net (loss) per share from
discontinued operations --
diluted $ - $ (0.00)
=========== ===========
Weighted average shares
outstanding -- basic 53,962,273 49,707,036
=========== ===========
Weighted average shares
outstanding -- diluted 53,962,273 50,603,891
=========== ===========
Innovative Food Holdings, Inc.
Consolidated Statements of Cash Flows
(unaudited)
For the Three For the Three
Months Ended Months Ended
March 31, March 31,
2025 2024
--------------- ---------------
Cash flows used in operating
activities:
Net income (loss) $ (430,436) $ 1,425,874
Adjustments to reconcile net
income (loss) to net cash used
in operating activities:
Gain on disposition of assets - (1,807,516)
(Gain) Loss on sale of
subsidiaries - (21,126)
Depreciation and amortization 109,621 110,260
Amortization of right of use
asset 61,469 4,175
Amortization of discount on
notes payable 1,284 1,283
Stock based compensation 101,201 103,235
Value of stock appreciation
rights 60,595 118,898
Provision for credit losses 27,555 22,882
Changes in assets and
liabilities:
Accounts receivable, net 1,517,007 175,436
Inventory and other current
assets, net (617,206) 71,054
Accounts payable and accrued
liabilities (1,664,232) (3,144,335)
Accrued separation costs -
related parties (83,333) (128,610)
Deferred revenue (2,092) (84,548)
Operating lease liability (58,840) (4,175)
----------- -----------
Net cash used in operating
activities (977,407) (3,157,213)
----------- -----------
Cash flows from investing
activities:
Acquisition of property and
equipment (163,366) (1,406)
Cash received from disposition
of asset, net of loan payoff - 2,101,185
----------- -----------
Net cash provided by (used in)
investing activities (163,366) 2,099,779
----------- -----------
Cash flows from financing
activities:
Principal payments on debt (45,604) (22,708)
Principal payments financing
leases (88,544) (49,977)
Cash received from line of
credit 500,000 -
Principal payments on line of
credit (500,000) -
----------- -----------
Net cash used in financing
activities (134,148) (72,685)
----------- -----------
Decrease in cash and cash
equivalents (1,274,921) (1,130,119)
Cash and cash equivalents at
beginning of period 2,380,195 5,422,335
----------- -----------
Cash and cash equivalents at end
of period - continuing
operations $ 1,105,274 $ 4,187,011
Cash and cash equivalents at end
of period - discontinued
operations $ - $ 105,205
----------- -----------
Cash and cash equivalents at end
of period $ 1,105,274 $ 4,292,216
=========== ===========
Supplemental disclosure of cash
flow information:
Cash paid during the period for:
Interest $ 204,813 $ 228,970
=========== ===========
Taxes $ - $ -
=========== ===========
Non-cash investing and financing
activities:
Reclassify fixed assets as held
for sale $ - $ 5,941,933
=========== ===========
Principal and accrued interest
paid from escrow to Maple Mark
Bank $ - $ 353,815
=========== ===========
Issuance of common stock under
compensation plans $ 74 $ -
=========== ===========
Issuance of stock for cashless
exercise of options $ 8 $ -
=========== ===========
Innovative Food Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Measures Adjusted
EBITDA Calculations
(unaudited)
Q1 2025 Q1 2024
--------------- ---------------
Net Income (Loss) From Continuing
Operations (GAAP) $ (430,436) $ 1,441,186
Depreciation & Amortization (1) $ 109,621 $ 110,260
Interest expense - net 209,166 $ 215,450
Income tax provision $ - $ -
----------
EBITDA (Non-GAAP) (2) $ (111,649) $ 1,766,896
Adjustments:
Separation Costs $ - $ 68,791
Other Restructuring Costs $ 7,392 $ 48,200
Stock Compensation Expense (3) $ 161,796 $ 222,133
Legal Fees - JIT Lawsuit $ - $ 24,515
Gain on Sale of Subsidiaries $ - $ (21,126)
Other Legal & Transactional $ 288,257 $ 37,159
Commission on Sale of Asset $ - $ 147,300
Gain on sale of assets $ - $(1,807,516)
Adjusted EBITDA (Non-GAAP) (4) $ 345,796 $ 486,352
Adjustments:
Depreciation $ (88,043) $ (110,260)
Interest expense - net $ (209,166) $ (215,450)
Income tax provision $ - $ -
-------------------------------------- ---------- ----------
Adjusted Net Income (Non-GAAP) (5) $ 48,587 $ 160,642
Adjusted Diluted EPS (Non-GAAP) $ 0.001 $ 0.003
Weighted-average diluted shares
outstanding (Non-GAAP) (6) 53,962,273 50,603,891
-------------------------------------- ---------- ----------
Q1 2025 Q1 2024
--------------- ---------------
Revenue (GAAP) $19,548,566 $15,518,153
Gross profit (GAAP) 4,485,807 3,804,934
Inventory Reserve $ - $ -
Adjusted Gross profit (Non-GAAP) (7) $ 4,485,807 $ 3,804,934
Adjusted Gross profit margin %
(Non-GAAP) 22.95% 24.52%
-------------------------------------- ---------- ----------
Q1 2025 Q1 2024
--------------- ---------------
Adjusted EBITDA (Non-GAAP) (4) $ 345,796 $ 486,352
Interest Expense -net $ (209,166) $ (215,450)
Income Tax Expense - net $ - $ -
Maintenance Capital Expenditures (8) $ (9,221) $ (1,406)
Adjusted Free Cash Flow (Non-GAAP) (9) $ 127,409 $ 269,496
-------------------------------------- ---------- ----------
(1) Includes non-cash depreciation and amortization charges.
(2) Earnings before interest, taxes, depreciation, and amortization
(3) Includes stock and options-based compensation and expenses.
(4) Adjusted EBITDA is a non-GAAP metric. Management believes that the presentation of Adjusted EBITDA and other non-GAAP financial measures provides useful information to investors because the information may allow investors to better evaluate ongoing business performance and certain components of the Company's results. In addition, the Company believes that the presentation of these financial measures enhances an investor's ability to make period-to-period comparisons of the Company's operating results. This information should be considered in addition to the results presented in accordance with GAAP, and should not be considered a substitute for the GAAP results.
(5) Adjusted Net Income accounts for the impact of non-core expenses including addback for one-time organizational restructure expenses, gains or losses on sale of assets or subsidiaries, tradename impairments, amortization expense, expense on the extinguishment of debt, and stock related expenses in both 2025 and 2024
(6) GAAP weighted average shares outstanding.
(7) Adjusted Gross profit is gross profit adjusted to remove the impact of inventory reserve adjustments or non-recurring inventory related gains or losses.
(8) Maintenance Capital Expenditures is a component of "Acquisition of property and equipment (GAAP)" on the consolidated statement of cash flows. It represents management's assumptions of capital spending to maintain the company's current level of operations. It does not include expenditures on acquisitions (less cash acquired), nor does it include other capital expenditures made to fund growth of the current business.
(9) Adjusted Free Cash Flow is defined as Adjusted EBITDA less interest expense, income tax expense, and maintenance capital expenditures. The company believes adjusted free cash flow is useful to investors in understanding how existing cash flow from operations before working capital changes and non-recurring items after maintenance capital expenditures (which we believe the best proxy for over time is Adjusted EBITDA less interest expense, income tax expense, and maintenance capital expenditures) is utilized as a source of growing our business. Adjusted Free Cash Flow is not a measure of cash available for discretionary expenditures since the company has certain non-discretionary obligations that were not deducted from the measure.
(END) Dow Jones Newswires
May 15, 2025 08:02 ET (12:02 GMT)
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