HAYWARD, Calif., October 23, 2024--(BUSINESS WIRE)--Armanino Foods of Distinction, Inc. (OTCQX: AMNF) reported its highest quarterly and Q3 YTD sales and profits ever for the third quarter ending September 30, 2024. This marks the 2nd quarter in a row of record breaking quarterly results. Armanino continued its profitability streak for the 84th quarter in a row.
Net sales for the third quarter of 2024 were $17,667,112 compared to $16,080,357 for the same period last year, an increase of 10%. Income before taxes for Q3 2024 was $5,514,502 compared to $3,050,210 for the same quarter in 2023, an increase of 81%. Net income for this period was $4,102,730 (or $.1280 per share), compared to $2,263,971 (or $.0706 per share) for the same quarter a year ago, an increase of 81%.
Net sales for the first nine months of 2024 were $50,868,879 compared to $47,468,553 for the same period last year, an increase of 7%. Income before taxes in this period for 2024 was $13,744,171, compared to the 2023 amount of $8,318,451, an increase of 65%. Net income for the first nine months of 2024 was $10,225,474 (or $0.3189 per share), compared to $6,188,927 (or $0.1930 per share) posted for the same period in 2023, an increase of 65%.
Net working capital for the period ending September 30, 2024 increased to $24,948,127, from $23,481,237 on December 31, 2023, an increase of 6%. Total current assets increased by $3,775,037 or 11%, to $39,420,830 at the end of Q3 2024, compared to the end of Q4 2023 driven by strong operating performance. As an offset, current liabilities increased by $2,308,147, or by 19%, to $14,472,703 at the end of Q3 2024 from $12,164,556 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.
Tim Anderson, President and CEO, stated, "For a second quarter in a row, the Company broke another record for the highest quarterly sales and profits achieved. Profits through Q3 2024 have surpassed the prior year’s results by a substantial margin and have already eclipsed total prior year’s annual profit. Specifically, 2024 year to date income before taxes and net income have surpassed the prior year’s annual results by over 17%. The Company also continues to see benefits from various efforts to improve operating performance, including better procurement of raw materials driven by lower commodity prices, and improved manufacturing and process efficiencies associated with the Company’s ongoing capital improvement projects. These efforts have helped drive ongoing margin improvement that is reflected in its record profit levels."
Anderson continued, "Although we are very pleased with our performance, we continue to be somewhat cautious in the near term as we believe that there is some indication of industry slowdown. Regardless, we remain confident in our efforts to outperform the industry by further diversification of our sales channels, as well as the introduction of innovative products to both existing and new customers. In addition, we will continue to seek further operational efficiencies in pursuit of improving our already low-cost structure to offset potential lower demand and suppliers competing on pricing."
Anderson concluded, "The Company is confident in its financial position and remains committed to making appropriate investments in its 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 September 30, 2024 (Unaudited)
2024
2023
NET SALES
$
17,667,112
$
16,080,357
COST OF GOODS SOLD
9,759,866
10,458,145
GROSS PROFIT
7,907,246
5,622,212
OPERATING EXPENSES:
General, administrative and selling expense
932,701
1,256,111
Salaries & wages
1.496,825
1,226,522
Commissions
253,303
247,551
Total Operating Expenses
2,682,829
2,730,184
INCOME FROM OPERATIONS
5,224,417
2,892,028
OTHER INCOME (EXPENSE)
290,085
158,182
INCOME BEFORE INCOME TAXES
5,514,502
3,050,210
INCOME TAX EXPENSE, NET
1,411,772
786,239
NET INCOME
$
4,102,730
$
2,263,971
Basic/Diluted Income Per Common Share
$
0.1280
$
0.0706
Weighted Average Common Shares Outstanding
32,052,356
32,065,645
Armanino Foods of Distinction, Inc.
Results for the Nine Month Ended September 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.
