Yes, the 2013 annual report did mention slower sales in the NE and Midwest due to severe weather. I'm not certain how much of an impact that will have, though. Most of Armanino's business is in the west, which has had good weather. Furthermore, the weaker US dollar may be helping to boost international sales.
The annual report also shows that the company has maintained good cost controls. Leases on their production and administrative facilities have been extended under what I would regard as favorable terms. The company plans no increase in head count in 2014 despite a trend towards increased sales. Armanino is also anticipating limited price increases on select products sometime in the 1st half of 2014, which should help revenues somewhat by the 2nd half.
If there is a weather related impact in the 1st quarter, it will be a temporary phenomena and might bring about an opportunity to add to a position or initiate a position at a favorable price. The recent weakness in the general stock market has already had what I believe is a spillover effect on Armanino. The stock is now oversold on a daily and weekly basis, although not on a monthly basis.
2014 might be a choppy year following the stellar stock performance in 2013 simply as the price gains may take some time to fully digest. One has to consider the possibility that the overbought condition of the general market might prove to have a negative effect as well. While anything can happen to a stock price in the short run (especially for a thinly traded stock like this one), Armanino remains one of my very favorite stocks.
I like the conservative management and the fact that the company has demonstrated consistent profitability along with some reasonable growth. Armanino has a strong balance sheet and quality food products that aren't likely to go out of style. I'd rather be here collecting a 3.56% dividend (at current $1.80/share) with a good chance of eventual dividend hikes in the future, than in some more exciting tech stock with no dividends and products that might be fantastic and change the world or just go totally obsolete in short order(or both!).
