Armanino Foods of Distinction, Inc. Reports Net Sales and Earnings for the Third Quarter

HAYWARD, Calif.--()--Armanino Foods of Distinction, Inc. (OTC Pink: AMNF) reported a decrease in its net sales and net income for the third quarter ending September 30, 2019. Year to date net sales and net income for the nine month period ending September 30 th remained higher than the same period last year.

Net sales for the third quarter of 2019 were $10,334,608 compared to $10,692,153 for the same period last year, a decrease of 3%. Income before taxes for Q3 2019 were $1,725,189 compared to $2,298,602 for the same quarter in 2018, a decrease of 25%. Net income for this period decreased to $1,520,319 (or $0.0474 per share), from $1,792,909 (or $0.0559 per share) for the same quarter a year ago, a decrease of 15%.

Net sales for the first nine months of 2019 were $31,622,142 compared to $31,572,486 for the same period in 2018, an increase of 0.2%. Income before taxes for the nine months ending September 30th of this year were $6,385,665, compared to the 2018 figure of $6,455,231, a decrease of 1%. Net income for this period was $5,062,192 (or $0.1579 per share), compared to $5,035,080 (or $0.1570 per share) for the same period a year ago, an increase of 1%.

Edmond J. Pera, President and CEO of Armanino Foods stated, “While this is our 65th quarter in a row of profitability, a significant decrease in purchases by our distributor in Asia, as well as higher expenditures for sales and promotional activities, drove year over year net sales and profits down for this quarter.”

Pera continued, “Looking at our results from a gross vs. net sales perspective, third quarter US domestic gross sales were very robust growing by $1.3 million, or by 11% over last year. However, third quarter gross sales in our Asian markets declined by approximately $800,000 over the prior year. As has been highlighted over the years Asian sales have historically been “lumpy” due to timing differences in ordering patterns. We are optimistic that in the upcoming fourth quarter sales in our Asian markets will be higher than sales in the third quarter of 2019 as well as the fourth quarter of 2018. With regard to our domestic markets, we continue to invest aggressively in promotional expenditures and are pleased with the signs that our investments will yield results. These investments include ongoing development of digital marketing assets and teams. Because of recent updates to tax studies which we announced and began to pursue last year, we lowered our income tax estimates for this year.”

Pera concluded, “Overall, while we are guarded about our financial performance for the remainder of this year, we believe our current sales pipeline in the US is strong and that our efforts to establish relationships with several large domestic prospects will eventually bear fruit. Despite the increases to our promotional spending, our overall margins remain healthy due primarily to the investments in our plant over the last 3 years which has increased our operating efficiencies. We will continue to pursue investments that increase our sales and market share keeping our focus on long run performance. Our cash position remains strong and we are paying down our debt which is expected to be eliminated by the fourth quarter of 2022.”

Armanino Foods of Distinction, Inc. is an international food company that manufactures and markets frozen Italian specialty food items such as pestos, Bolognese, Alfredo sauce 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, Creamy Garlic, Harissa, Romesco, Chimichurri, and Light Basil Pesto. Armanino’s Organic line includes classic Basil Pesto. Frozen pastas, sauces and meatballs are also offered by Armanino Foods.

Armanino Foods of Distinction, Inc.

Results for Quarter Ended September 30, 2019 (Unaudited)

 

 

 

 

2019

2018

 

 

 

Net Sales

$10,334,608

$10,692,153

Income Before Taxes

$1,725,189

$2,298,602

Net Income

$1,520,319

$1,792,909

Basic Income Per Common Share

$0.0474

$0.0559

Weighted Average Common Shares Outstanding

32,065,645

32,065,645

Diluted Income/(Loss) Per Common Share

$0.0474

$0.0559

Diluted Weighted Average Common Shares Outstanding

32,065,645

32,065,645

 

 

 

Results for Nine Months Ended September 30, 2019 (Unaudited)

 

 

 

 

2019

2018

Net Sales

$31,622,142

$31,572,486

Income Before Taxes

$6,385,665

$6,455,231

Net Income

$5,062,192

$5,035,080

Basic Income Per Common Share

$0.1579

$0.1570

Weighted Average Common Shares Outstanding

32,065,645

32,065,645

Diluted Income/(Loss) Per Common Share

$0.1579

$0.1570

Diluted Weighted Average Common Shares Outstanding

32,065,645

32,065,645

This press release contains forward-looking statements within the meaning of U.S. securities laws, including statements regarding the Company’s goals and growth prospects. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected, including general economic conditions, fluctuations in customer demand, competitive factors such as pricing pressures on existing products, and the timing and market acceptance of new product introductions, the Company’s ability to achieve manufacturing efficiencies necessary for profitable sales at current pricing, and the risk factors listed from time-to-time in the Company’s annual and quarterly reports. The Company assumes no obligation to update the information included in this press release.

Contacts

Edgar Estonina
COO/CFO
(510) 441-9300
AMNF@armaninofoods.com

Contacts

Edgar Estonina
COO/CFO
(510) 441-9300
AMNF@armaninofoods.com