HAYWARD, Calif., April 23, 2024--(BUSINESS WIRE)--Armanino Foods of Distinction, Inc. (OTC Pink: AMNF) reported its highest quarterly profits ever for the first quarter ending March 31, 2024. Armanino continued its profitability streak for the 83rd quarter in a row.
Net sales for the first quarter of 2024 were $15,720,317 compared to $16,351,866 for the same period last year, a decrease of 4%. Income before taxes for Q1 2024 was $3,116,504 compared to $2,561,406 for the same quarter in 2023, an increase of 22%. Net income for this period was $2,318,683 (or $.0723 per share), compared to $1,902,069 (or $.0598 per share) for the same quarter a year ago, an increase of 22%.
Working capital at March 31, 2024 decreased to 21,016,577, from $23,481,237 on December 31, 2023, a decrease of 11%. Total current assets increased by approximately $1.2M, or 3%, from $35.6M at the end of Q4 2023 to $36.9M at the end of Q1 this year due to the continued strength of profits as well as the impact of record-breaking profits in Q4 2023. This was offset by a $3.7M, or 30% increase in current liabilities from $12.2M at the end of Q4 2023 to $15.8M at the end of Q1 2024. The increase in current liabilities was largely driven by the Board’s decision to raise the regular dividend by 10%, and for the 11th time in its history to declare a special dividend, this time paying $.10/share due to the strength of its cash position and zero debt.
Tim Anderson, President and CEO, stated, "We continue to benefit from our margin improvement efforts as demonstrated by achieving the highest first quarter profits and second highest profits for a quarter. As indicated in our previous press release, our Q1 Net Sales were negatively impacted by key customers’ forward shipping at the end of Q4 2023. Despite the Q1 dip in Net Sales we remain confident in our long-term sales growth trajectory. We continue to strategically broaden our portfolio of products through various channels in support of driving Company growth. In addition, we continue to lower our cost structure across multiple areas of our business. The areas include COGS and promotional expenses. The improvements are driven by lower commodity costs and improved manufacturing and process efficiencies including those associated with our ongoing capital improvement projects."
Anderson continued, "We continue to be confident in our financial and operational performance with a careful eye toward the uncertainty of the impact of sustained economic pressures that could negatively impact our future results. As a result, we seek to realize greater cost efficiencies as we enter the final stage of our capital projects."
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, and meatballs.
Armanino Foods of Distinction, Inc.
Results for Quarter Ended March 31, 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.
