Key Second quarter data points: Revenue of $16.7 million, -10.1% vs. Q2 2023 Specialty Foodservice revenue -4.3% vs. Q2 2023 Gross margin declined by 41 basis points vs. Q2 2023 to 23.8% Adjusted gross margin improved by 36 basis points vs. Q2 2023, after adjusting for liquidation efforts related to the igourmet.com divestiture GAAP net loss from continuing operations of ($0.1) million, compared to a Q2 2023 net income of $0.1 million GAAP net income loss from continuing operations per fully diluted share of ($0.002) vs. Q2 2023 of $0.002 Adjusted net income from continuing operations of $554K, compared to Q2 2023 of $819K Adjusted net income per fully diluted share of $0.011, compared to an adjusted net income per fully diluted share in Q2 2023 of $0.017 Adjusted EBITDA of $821K, compared to $1.176M in Q2 2023 BONITA SPRINGS, Fla., Aug. 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 second quarter of 2024. Bill Bennett, Chief Executive Officer of IVFH, remarked, "As we messaged last quarter, Q2 2024 was anticipated to be our toughest revenue quarter of the year. Our overall revenue declined 10.1%, primarily due to our intentional ramp down of our direct-to-consumer e-commerce business, which saw a 52.2% decline, contributing 62% of the overall revenue decline. Our Specialty Foodservice revenue also declined by 4.3%, accounting for 37% of the overall declines. This was due to continued headwinds in our legacy drop ship business, partially offset by growth in our Artisan Specialty Foods business, our airlines business, and our newly added customers. Despite these challenges, we continued to make progress on the structure of our business, which will benefit us as we get back to growth. We grew adjusted gross margins (non-GAAP) by 36 basis points and reduced SG&A by more than $700K compared to last year, excluding non-cash items. We are pleased with this overall reduction in SG&A, since while we've been aggressively managing down expenses, we also substantially increased expenditures on growth-related items compared to the same period last year. GAAP Net Income declined by $103K vs. Q2 2023, driven by our sales softness. Adjusted EBITDA also declined, from $1.176M last year, to $821K this year." Mr. Bennett added, "While this quarter was in line with our revenue expectations, we're not satisfied with the business's performance, and we are making material progress on our turnaround efforts. In fact, we continue to be confident that we'll return our foodservice business to year-over-year growth in the back half of the year, achieving annual 2024 growth, through three areas of focus: Previously disclosed growth opportunities: Our business with a new broadline distributor partner has gotten off to a strong start with our non-perishable assortment, and the partner is now further accelerating our relationship by agreeing to expand into our perishable assortment. New growth initiatives: This quarter, we launched a new, ten-store test with a large national retailer, where we are managing and supplying their gourmet cheese category for them. Resource reallocation: We are leveraging the recently announced divestiture of our consumer e-commerce business to reallocate resources and focus on our profitable growth businesses. For example, we moved our Amazon marketplace expert from focusing on the consumer e-commerce business to our foodservice offering platform. Since this shift, we have onboarded more than 700 new items and achieved triple-digit growth rates." "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. Financial ResultsRevenues in the second quarter of 2024 decreased 10.1% to $16.7 million, impacted by a 52.2% decrease in eCommerce revenue as the Company continued to ramp down the direct-to-consumer side of the business. Second quarter 2024 Specialty Foodservice revenue declined 4.3% reaffirming the prior communication that Q2 would be our toughest quarter. The following table sets forth IVFH's revenue by business category for the quarter ended June 30, 2024, and June 30, 2023 (unaudited):   For the Three Months Ended   June 30, 2024   % of NetSales     June 30, 2023   % of NetSales     % Change Specialty Foodservice 15,354,697   92.2 %   16,045,427   86.6 %   -4.3 % E-Commerce 1,055,036   6.3 %   2,205,221   11.9 %   -52.2 % Logistics 249,257   1.5 %   270,443   1.5 %   -7.8 % Total IVFH 16,658,990   100 %   18,521,091   100 %   -10.1 % Gross margins as a percentage of sales decreased during the current period to 23.8% compared to 24.2% during the comparable period, a decline of 41 basis points, driven by our continued ramp down and liquidation efforts related to the consumer eCommerce business. However, after adjusting for these liquidation efforts, gross margins continued to make forward progress, improving by 36 bps during the comparable period, as we continued implementing our strategy to improve cost controls, better manage pricing, and focus more on product mix. Importantly, the improvement was driven by an increase in gross margins in the Specialty Foodservice business. Additionally, we renegotiated a new contract with our shipping provider which has just begun to materially reduce shipping expenses. Selling, General, and Administrative expenses ("SG&A") decreased by $0.3 million or 7.6% to $3.9 million during the three months ended June 30, 2024 compared to $4.2 million for the three months ended June 30, 2023. The decrease in SG&A expenses was primarily due to a decrease in payroll and related costs of $0.3 million, a decrease in advertising and marketing costs of $0.2 million, a decrease in office and facilities costs of $0.1 million, and a decrease in depreciation and amortization of $0.1 million. These decreases were partially offset by an increase in non-cash compensation of $0.4 million associated with the revaluation of stock appreciation rights pursuant to a management compensation plan. Excluding non-cash compensation, SG&A expenses would have decreased by $0.7 million or 17.9%, resulting in a 190 basis point reduction in SG&A as a percentage of sales compared to the last year period. The Company recorded GAAP net losses from continuing operations for the 2024 second quarter of $103k, compared to a net income of $83k in the prior year. Adjusted Net Income, a non-GAAP metric (see tables below), for the 2024 second quarter was $553K, or $0.011 per fully diluted share, compared to $819K, or $0.017 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 second quarter was $821K compared to $1.176M in the prior year. Adjusted Free Cash Flow, a non-GAAP metric (see tables below), for the 2024 second quarter was $597K compared to $926k in the prior year. Conference CallThe Company's management will be holding an investor call on August 14, 2024 at 11:00 am Eastern Time to discuss the Company's second fiscal quarter results for the quarter ended June 30, 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/82548501523?pwd=amjV9hfrqT7MstdCR8pB8eRnsSIRNM.1 Meeting ID: 825 4850 1523Passcode: 788684One tap mobile:  +17193594580,,82548501523# 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 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; 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, 2023 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 SchubertChief Financial OfficerInnovative Food Holdings, Innovative Food Holdings, Inc. Consolidated Balance Sheets       June 30,     December 31,       2024     2023       (unaudited)           ASSETS                 Current assets                 Cash and cash equivalents   $ 3,866,448     $ 5,327,016   Accounts receivable, net     5,198,153       4,307,726   Inventory     2,762,071       2,973,134   Other current assets     299,424       287,528   Assets held for sale     5,941,933       649,884   Current assets - discontinued operations     20,284       95,861   Total current assets     18,088,313       13,641,149                     Property and equipment, net     934,353       7,000,015   Right of use assets, operating leases, net     20,098       28,519   Right of use assets, finance leases, net     407,427       436,403   Tradenames and other unamortizable intangible assets     217,000       217,000   Total assets     19,667,191     $ 21,323,086                     LIABILITIES AND STOCKHOLDERS' EQUITY                 Current liabilities                 Accounts payable and accrued liabilities     3,222,324       6,252,951   Accrued separation costs, related parties, current portion     342,666       463,911   Accrued interest     89,990       95,942   Deferred revenue     1,440,803       1,312,837   Stock appreciation rights liability     786,768       255,020   Notes payable - current portion     122,717       121,041   Lease liability - operating leases, current     15,927       17,131   Lease liability - finance leases, current     154,392       115,738   Current liabilities - discontinued operations     2,522       6,422   Total current liabilities     6,178,109       8,640,993                     Note payable, net of discount     8,459,439       8,855,000   Accrued separation costs, related parties, non-current     624,359       791,025   Lease liability - operating leases, non-current     4,171       11,388   Lease liability - finance leases, non-current     85,771       219,266   Total liabilities     15,351,849       18,517,672                                                         Commitments & Contingencies (see note 18)                 Stockholders' equity                 Common stock: $0.0001 par value; 500,000,000 shares authorized; 52,562,238 and 52,538,100 shares issued, and 49,717,941 and 49,714,929 shares outstanding at June 30, 2024 and December 31, 2023, respectively