HAYWARD, Calif., July 22, 2024--(BUSINESS WIRE)--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)
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.
