Armanino Foods of Distinction, Inc. Reports Year to Date Record Sales and Earnings Despite Lower Quarterly Results
Business Wire
Armanino Foods of Distinction, Inc. October 19, 2015 11:00 AM
HAYWARD, Calif.--(BUSINESS WIRE)--
Armanino Foods of Distinction, Inc. (OTC Pink: AMNF) reported the highest year to date sales and earnings in its history, despite a drop in similar results for the third quarter.
Net sales for the third quarter of 2015 were $8,488,032 compared to $8,697,316 for Q3 2014, a decrease of <2.4%>. Income from continuing operations before taxes for Q3 2015 were $1,586,641 compared to $1,872,209 for the same quarter in 2014, a decrease of <15.3%>. Earnings per share in Q3 2015 were $0.030 compared to $0.036 in 2014, a decrease of <16.7%>.
Net sales for the first nine months of 2015 were $25,641,861 compared to $23,668,523 for the same period in 2014, an increase of 8.3%. Income from continuing operations in this period for 2015 were $5,021,088 compared to the 2014 figure of $4,861,708, an increase of 3.3%. Earnings per share for the nine months of 2015 amounted to $0.096 compared to the $0.093 posted in 2014, an increase of 3.2%.
Edmond J. Pera, President and CEO of Armanino Foods stated, “The strength of our US markets drove our year to date growth in sales and earnings, and offset weaker results in our Asian markets during this period.”
Pera continued, “The solid momentum of our US markets continued into the third quarter. However, significantly weaker Q3 sales in our Asian markets, as well as heavier than normal spending on promotional investments resulted in a year over year decrease in our financial performance during this period. The stronger US dollar and soft economy in our principal Asian market resulted in weaker demand for our products in that market. Third quarter sales in our Asian markets represented 7% of total company sales, compared with 13% in the same period last year. To date in the fourth quarter, sales in our Asian markets are above prior year. Even though the rate of our promotional expenditures was much higher than usual in Q3, we anticipate that these investments will increase our US market share and profitability in the short and long term. For perspective, even though we saw a drop in our Q3 operating income, this quarter was being compared to last year’s third quarter which to date was the most profitable quarter in the Company’s history.”
Pera concluded, “We are optimistic about the strength of our financial performance in our US markets – our US sales pipeline is strong and we are working on several exciting prospects. Although fourth quarter sales to date in our Asian markets are above prior year, we cannot say with any certainty what our longer term outlook in those markets are. Total sales towards the end of the third quarter, and total sales and bookings to date for the fourth quarter have trended higher than the same periods last year. Our cash position remains healthy and is significantly higher than it was this same period last year. We continue to pay down our long term debt which is scheduled to be fully paid off on time before the end of second quarter in 2017.”
Armanino Foods of Distinction, Inc. is an international food company that manufactures and markets frozen Italian specialty food items such as pestos, Bolognese, 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 and Light Basil Pesto. Armanino’s Organic line includes classic Basil Pesto. Frozen pastas, sauce and meatballs are also offered by Armanino Foods.
Armanino Foods of Distinction, Inc.
Results for Quarter Ended September 30, 2015 (Unaudited)
2015 2014
Net Sales $8,488,032 $8,697,316
Income from Cont. Operations Before Taxes $1,586,641 $1,872,209
Net Income $972,351 $1,146,548
Basic Income Per Common Share $0.030 $0.036
Weighted Average Common Shares Outstanding 32,065,645 32,065,645
Diluted Income/(Loss) Per Common Share $0.030 $0.036
Diluted Weighted Average Common Shares Outstanding 32,065,645 32,065,645
Results for Nine Months Ended September 30, 2015 (Unaudited)
2015 2014
Net Sales $25,641,861 $23,668,523
Income From Cont. Operations Before Taxes $5,021,088 $4,861,708
Net Income $3,076,899 $2,979,142
Basic Income Per Common Share $0.096 $0.093
Weighted Average Common Shares Outstanding 32,065,645 32,065,645
Diluted Income/(Loss) Per Common Share $0.096 $0.093
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.
Contact:
Armanino Foods of Distinction, Inc.
Edgar Estonina, 510-441-9300
CFO
AMNF@armaninofoods.com
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