Key first quarter data points: Revenue of $15.7 million, -5.7% vs. Q1 2023 Specialty Foodservice revenue +1.4% vs. Q1 2023, accelerating from -13.6% trend in Q4 Gross margin improved by 174 basis points to 24.4% vs. Q1 2023 GAAP net income from continuing operations of $1.4 million, compared to a Q1 2023 loss of ($2.8 million) GAAP net income from continuing operations per fully diluted share of $0.028 vs. Q1 2023 of ($0.060) Adjusted net income from continuing operations of $155K, compared to Q1 2023 of ($509K) – an improvement of $665K, and the first profitable Q1 on an adjusted basis in five years Adjusted net income per fully diluted share of $0.003, compared to an adjusted net loss per fully diluted share in Q1 2023 of ($0.011) Adjusted EBITDA of $481K, compared to ($202K) in Q1 2023, an improvement of $683K Sale of Bonita Springs building netted the company $1.9 million in cash BONITA SPRINGS, Fla., May 14, 2024 (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 2024. Bill Bennett, Chief Executive Officer of IVFH, remarked, "In Q1 2024, we delivered strong, accelerating results across all key metrics. While our overall revenue declined 5.7%, the declines were driven by our intentional ramp down of our direct-to-consumer e-commerce business. Importantly, our Specialty Foodservice revenue grew 1.4%, returning to growth for the first time since Q1 of last year, earlier than originally anticipated. We also continued to grow gross margins (GAAP) by 174 basis points, and reduced SG&A by more than $400K compared to last year. GAAP Net Income showed an improvement of $4.2 million vs. Q1 2023, benefiting from a gain from the sale of our Florida building this year, and lapping significant separation costs from Q1 2023. However, our strong operating performance led to a significant acceleration of more than $650K in both adjusted net income and adjusted EBITDA, reaching $155K and $481K respectively. With Q1 historically being a loss-driving quarter for the company over the last five years, this is a strong reversal of that trend. It is exciting that we have clearly started to show the underlying earnings power of the organization." Mr. Bennett added, "What's most exciting is that now that we've demonstrated we have a profitable business model, we're really just getting started on driving growth. As announced last month, we recently signed a contract with a new customer, Cheney Brothers. This is our first new customer in the drop ship business in over five years. We are also continuing to make progress in building relationships with other new large customers. We hope these new relationships will contribute to revenue growth in the back half of the year. We also continue to develop our sourcing efforts. Since we kicked off this initiative last fall, we have inserted more than 40 new vendors into our setup process, with approximately 500 new items in the pipeline, focused on fresh seafood, meat, and produce. Fresh items drive repeat and loyalty, and we are aggressively strengthening our offering in this arena." "During the past twelve months as my tenure as CEO has progressed, my confidence in the opportunity that lies ahead for IVFH continues to increase. We have 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 that will hopefully drive long-term shareholder value," concluded Mr. Bennett. Financial ResultsRevenues in the first quarter of 2024 decreased 5.7% to $15.7 million, impacted by a 41.7% decrease in eCommerce revenue as the Company continued to ramp down the direct-to-consumer side of the business. First quarter 2024 Specialty Foodservice revenue grew 1.4% as the Company returned to growth with key customers and began expanding its assortment. The following table sets forth IVFH's revenue by business category for the quarter ended March 31, 2024, and March 31, 2023 (unaudited):   Year Ended     March 31, 2024   % of Net Sales     March 31, 2023   % of Net Sales     % Change   Specialty Foodservice   13,993,565   89.0 %   13,804,785   82.8 %   1.4 % E-Commerce   1,528,337   9.7 %   2,621,405   15.7 %   -41.7 % Logistics   208,211   1.3 %   248,569   1.5 %   -16.2 % Total IVFH   15,730,113   100 %   16,674,759   100 %   -5.7 % During the first quarter of 2024, the company drove an increase in its gross margin as a percentage of sales, rising to 24.4% from 22.6% in the same period the previous year. This upward trend can be attributed to two main strategic decisions: first, the company's ongoing efforts to manage prices in the specialty foodservice business; second, the decision to cease using a higher-cost shipping provider. These factors were instrumental in driving this positive change. Selling, general, and administrative ("SG&A") expenses were $4.0 million, compared to $4.4 million last year. The $0.4 million decrease was primarily due to a decrease in legal and professional fees of $0.2 million, a decrease in advertising of $0.2 million, and a decrease in payroll and related costs of $0.1 million. These decreases were partially offset by an increase in real estate commissions of $0.1 million related to the sale of the Bonita Springs, FL facility. SG&A expenses as a percentage of sales decreased from 26.7% of sales during the three months ended March 31, 2023 to 25.5% of sales during the current quarter. The Company recorded GAAP net income from continuing operations for the 2024 first quarter of $1.4 million, compared to a loss of ($2.8 million) in the prior year. Adjusted Net Income, a non-GAAP metric (see tables below), for the 2024 first quarter was $155K, or $0.003 per fully diluted share, compared to a loss of ($509K), or ($0.011) per fully diluted share, in the prior year. Adjusted Net Income accounts for the impact of non-core expenses including addbacks 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 2024 and 2023. Adjusted EBITDA, a non-GAAP metric (see tables below), for the 2024 first quarter was $481K compared to ($202K) in the prior year. Adjusted Free Cash Flow, a non-GAAP metric (see tables below), for the 2024 first quarter was $264K compared to a decrease of ($382K), in the prior year. Conference CallThe Company's management will be holding an investor call on May 14, 2024 at 4:30 pm Eastern Time to discuss the Company's first fiscal quarter results for the quarter ended March 31, 2024. 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 Meetinghttps://us02web.zoom.us/j/87350377816?pwd=Y0FzMmk2Y0p5ZzdFaVNoVEVab1grZz09Meeting ID: 873 5037 7816Passcode: 218396One tap mobile: +16694449171,,87350377816# 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 and home chefs create unforgettable experiences for their guests. Additional information is available at www.ivfh.com. Forward-Looking StatementsThis release contains certain forward-looking statements and information relating to Innovative Food Holdings, Inc. (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 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 as "should," "could," "will," "anticipate," "believe," "intend," "plan," "might," "potentially" "targeting" or "expect." Additional factors that could also cause actual results to differ materially relate to international crises, environmental and economic issues and other risk factors described in our public filings. The Company does not intend to update these forward-looking statements. The content of the websites referenced above are not incorporated herein. Investor and Media contact:Gary SchubertChief Financial OfficerInnovative Food Holdings, Innovative Food Holdings, Inc.Consolidated Balance Sheets   March 31,     December 31,     2024     2023     (unaudited)           ASSETS               Current assets               Cash and cash equivalents $ 4,272,243     $ 5,327,016   Accounts receivable, net   4,109,274       4,307,726   Inventory   2,840,682       2,973,134   Other current assets   348,926       287,528   Assets held for sale   5,941,933       649,884   Current assets - discontinued operations   20,649       95,861   Total current assets   17,533,707       13,641,149                   Property and equipment, net   974,143       7,000,015   Right of use assets, operating leases, net   24,344       28,519   Right of use assets, finance leases, net   411,488       436,403   Tradenames and other unamortizable intangible assets   217,000       217,000   Total assets $ 19,160,682     $ 21,323,086                   LIABILITIES AND STOCKHOLDERS' EQUITY               Current liabilities               Accounts payable and accrued liabilities $ 3,111,671       6,252,951   Accrued separation costs, related parties, current portion   418,635       463,911   Accrued interest   93,829       95,942   Deferred revenue   1,227,936       1,312,837   Stock appreciation rights liability   373,918       255,020   Notes payable - current portion   100,237       121,041   Lease liability - operating leases, current   17,422       17,131   Lease liability - finance leases, current   136,096       115,738   Current liabilities - discontinued operations   2,522       6,422   Total current liabilities   5,482,266       8,640,993                   Note payable, net of discount   8,501,474       8,855,000   Accrued separation costs, related parties, non-current   707,692       791,025   Lease liability - operating leases, non-current   6,922       11,388   Lease liability - finance leases, non-current   148,931       219,266   Total liabilities   14,847,285