Armanino Foods of Distinction, Inc. (OTC Pink: AMNF) reported
its highest quarterly and Q2 YTD sales and profits ever for the
second quarter ending June 30, 2024. Armanino continued its
profitability streak for the 84th quarter in a row.
Net sales for the second quarter of 2024 were $17,481,452
compared to $15,036,330 for the same period last year, an increase
of 16%. Income before taxes for Q2 2024 was $5,113,685 compared to
$2,692,706 for the same quarter in 2023, an increase of 90%. Net
income for this period was $3,804,581 (or $.1186 per share),
compared to $2,008,758 (or $.0626 per share) for the same quarter a
year ago, an increase of 89%.
Net sales for the first six months of 2024 were $33,201,768
compared to $31,388,195 for the same period last year, an increase
of 6%. Income before taxes in this period for 2024 was $8,230,173,
compared to the 2023 amount of $5,268,240, an increase of 56%. Net
income for the first six months of 2024 was $6,123,249, or $0.1910
per share, compared to $3,924,955, or $0.1224 per share posted for
the same period in 2023, an increase of 56%.
Net working capital for the period ending June 30, 2024
decreased to $22,944,962, from $23,481,237 on December 31, 2023, a
decrease of 2%. Total current assets increased by approximately
$781K, or 2%, to $36.4M at the end of Q2 2024, compared to the end
of Q4 2023 driven by strong operating performance. As an offset,
current liabilities increased by approximately $1.3M or by 11%, to
$13.5M at the end of Q2 2024 from $12.2M at the end of Q4 2023. The
increase in current liabilities was largely driven by timing
differences related to the payment of accounts payable and contract
liabilities, as well as payroll related liabilities. Further,
dividends payable increased as a result of the Board’s decision in
Q2’24 to raise the regular dividend by 10%.
Tim Anderson, President and CEO, stated, “We continue to benefit
from our margin improvement efforts as demonstrated in the
achievement of the highest quarterly and first half profits in the
Company’s history. Sales have also rebounded to record Q2 and first
half results. Our margin improvements are results of our continued
efforts in lowering our cost structure across multiple areas of our
business. These improvements are driven by lower commodity costs
and improved manufacturing and process efficiencies, including
those associated with our ongoing capital improvement projects.
Although we very pleased with our performance, we continue to be
somewhat cautious about the near term as there is some indication
of industry slowdown.”
Anderson continued, “We remain confident in our efforts to
outperform the industry by further diversifying our sales portfolio
through organic and inorganic growth opportunities, including
innovative business opportunities while mitigating core business
risk. In addition, we will continue to seek further operational
efficiencies in pursuit of optimal cost structure and lower input
costs to offset potential lower demand and suppliers competing on
pricing.”
Anderson concluded, “We are proud of our financial position and
remain committed to making appropriate investments in our efforts
to grow sales profitably with a focus on new products, new markets,
operational efficiencies, and potential acquisitions.”
Armanino Foods of Distinction, Inc. is an international food
company that manufactures and markets frozen Italian specialty food
items such as pestos, sauces and filled pastas to the foodservice,
retail, and industrial markets. In addition to a classic Basil
Pesto Armanino offers other flavors such as Cilantro, Dried Tomato
& Garlic, Roasted Red Bell Pepper, Southwest Chipotle,
Artichoke, Roasted Garlic, Light Basil Pesto, Chimichurri, Harissa,
Bolognese, Alfredo sauce, Creamy Garlic, and Romesco. Armanino’s
organic line includes classic Basil Pesto. Armanino Foods also
offers cheese shakers, frozen pastas, meatballs, and prepared
meals.
Armanino Foods of Distinction,
Inc.
Results for
Quarter Ended June 30, 2024 (Unaudited)
2024
2023
NET SALES
$
17,481,452
$
15,036,330
COST OF GOODS SOLD
10,208,172
9,861,121
GROSS PROFIT
7,273,325
5,175,209
OPERATING EXPENSES:
General, administrative and selling
expense
1,165,638
997,332
Salaries & wages
979,381
1,297,836
Commissions
292,158
270,446
Total Operating Expenses
2,437,177
2,565,614
INCOME FROM OPERATIONS
4,836,148
2,609,595
OTHER INCOME (EXPENSE)
277,536
83,111
INCOME BEFORE INCOME TAXES
5,113,685
2,692,706
INCOME TAX EXPENSE, NET
1,309,103
683,948
NET INCOME
$
3,804,581
$
2,008,758
Basic/Diluted Income Per Common Share
$
0.1186
$
0.0626
Weighted Average Common Shares
Outstanding
32,065,645
32,065,645
Armanino Foods of Distinction,
Inc.
Results for
the Six Month Ended June 30, 2024 (Unaudited)
2024
2023
NET SALES
$
33,201,768
$
31,388,196
COST OF GOODS SOLD
19,898,103
21,401,681
GROSS PROFIT
13,303,665
9,986,515
OPERATING EXPENSES:
General, administrative and selling
expense
2,599,075
1,866,955
Salaries & wages
2,514,056
2,499,411
Commissions
521,323
500,141
Total Operating Expenses
5,634,454
4,866,507
INCOME FROM OPERATIONS
7,669,211
5,120,008
OTHER INCOME (EXPENSE)
560,962
148,232
INCOME BEFORE INCOME TAXES
8,230,173
5,268,240
INCOME TAX EXPENSE, NET
2,106,924
1,343,285
NET INCOME
$
6,123,249
$
3,924,955
Basic/Diluted Income Per Common Share
$
0.1910
$
0.1224
Weighted Average Common Shares
Outstanding
32,065,645
32,065,645
Armanino Foods of Distinction,
Inc.
Working
Capital (Unaudited)
June 30, 2024
December 31, 2023
CURRENT ASSETS:
Cash and cash equivalents
$
21,393,112
$
22,177,386
Accounts receivable, net
8,445,165
8,067,266
Inventories, net
5,621,461
4,681,212
Prepaid expenses
966,786
719,929
Total Current Assets
36,426,524
35,645,793
CURRENT LIABILITIES:
Accounts payable, and contract
liabilities
8,702,006
7,321,319
Accrued payroll and payroll taxes
2,965,835
2,906,660
Operating lease liability – current
portion
649,738
649,738
Dividends payable
1,163,983
1,058,167
Income taxes payable
-
228,672
Total Current Liabilities
13,481,562
12,164,556
Net Working Capital
$
22,944,962
$
23,481,237
Cautionary
Statements Regarding Forward-Looking Information:
The declaration of cash dividends in the
future, pursuant to the Company’s dividend policy, is subject to
final determination each quarter by the Board of Directors based on
a number of factors, including the Company’s financial performance
and its available cash resources. For this reason, as well as
others, there can be no assurance that dividends in the future will
be equal or similar to the amount described in this press release
or that the Board of Directors will not decide to suspend or
discontinue the payment of cash dividends in the future.
Statements in this news release regarding
our expectations and beliefs about our future financial performance
and trends in our markets are “forward- looking statements” as
defined in the Private Securities Litigations Reform Act of 1995.
Forward-looking statements often include the words “believe,”
“expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” or
words of similar meaning, or future or conditional verbs such as
“will,” “would,” “should,” “could,” or “may.”
The forward-looking statements in this
news release regarding our future financial performance are based
on current information and because our business is subject to
several risks and uncertainties, actual operating results in the
future may differ significantly from the future financial
performance expected at the current time. Those risks and
uncertainties may include, among others: economic factors affecting
consumer confidence and discretionary spending and reducing the
consumption of food prepared away from home; the extent and
duration of the negative impact of the COVID-19 pandemic and its
consequences on the Company; 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 customers and group
purchasing organizations; the Company’s ability to increase or
maintain the highest margin portions of the Company’s business;
achievement of expected benefits from cost savings initiatives;
increases in fuel costs; changes in consumer eating habits; cost
and pricing structures and other governmental regulation, including
actions taken by national, state and local governments to contain
and/or respond to the COVID-19 pandemic and its consequences;
product recalls and product liability claims; and our reputation in
the industry. The forward-looking statements contained in this
press release speak only as of the date of this press release and
are based on information and estimates available to the Company at
this time. We undertake no obligation to update or revise any
forward-looking statements, except as may be required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240722459403/en/
For further information, please contact: Edgar Estonina COO/CFO
(510) 441-9300 IR@armaninofoods.com