Armanino Foods of Distinction, Inc. (NASDAQ Small Cap Symbol: ARMF) announced Friday (20 July) net sales, operating and net income, and earnings per share for the second quarter and six month period ended June 30, 2001.
Net sales for the second quarter ended June 30, 2001 amounted to $3,559,299 as compared to $3,898,955 for the same period in 2000. This quarterly sales decrease appears primarily attributable to timing differences of sales which are expected to materialize in the third and fourth quarters. Net sales for the six months ended June 30, 2001 were $6,693,676 as compared to $6,988,134, a decrease of 4% mostly attributable to the second quarter.
Income from continuing operations before income taxes for the second quarter of 2001 was $257,138 compared to $528,581 for the second quarter of 2000. Lower sales, coupled with high promotion and marketing expenses, accounted for the decrease. Income from continuing operations before income taxes for the six months ended June 30, 2001 was $398,216 as compared to $705,928 for the comparable period a year ago.
Net income for the second quarter and six months ended June 30, 2001 was $143,997 and $223,001 respectively, compared to $317,149 and $423,557 for the like quarter and six months of a year ago. Basic and diluted earnings per share, after giving effect to the recent 100% stock dividend, amounted to $0.05 and $0.07 for the quarter and six months, respectively, compared to basic and diluted earnings per share of $0.09 and $0.12 for the same periods in 2000.
William J. Armanino, president and CEO of Armanino Foods, said, “Our June month was disappointing as expected orders from some our main customers did not arrive when expected and are just now starting to come in. We believe the downturn is cyclical and short-lived as our forecasts for the remainder of the year are strong. Our second quarter results were also impacted by our investment in heavy promotion and marketing of our products from which we expect sales to materialize in future periods.”
Armanino continued, “We have just started shipping our new product line of cooked meat and chicken products as well as continuing sales of our own branded meatball line. We are currently soliciting a significant number of meat distributors in the Western United States and anticipate that our superior quality products and excellent service should allow us to make this new line of products a success. We do not believe, however, that sales of these new products will be significant contributors to our bottom line until later this year and into next year.”
Armanino concluded, “We believe we can make up most of the second quarter’s shortfall in sales and profits in the third and fourth quarters. We continue to be optimistic about the future.”
Armanino is an international food company that manufactures and markets frozen pestos, filled pasta products, sauced entrees, meatballs, cooked meat, poultry products and focaccia to the retail, food service, club stores, institutional, and industrial food industry segments.
Armanino Foods of Distinction, Inc.
Results for the Quarter Ended 6/30/01
Quarter Ended 6/30/01
Net Sales $3,559,299 $3,898,955
Net Income From Cont. Oper. Before Taxes $ 257,138 $ 528,581
Net Income $ 143,997 $ 317,149
Basic Income Per Common Share $ 0.05 $ 0.09
Weighted Average Common Shares
Outstanding 3,138,982 3,345,804
Diluted Income Per Common Share $ 0.05 $ 0.09
Weighted Average Shares Outstanding 3,172,927 3,496,204
Six Months Ended 6/30/01
Net Sales $6,693,676 $6,988,134
Net Income From Cont. Oper. Before Taxes $ 398,216 $ 705,928
Net Income $ 223,001 $ 423,557
Basic Income Per Common Share $ 0.07 $ 0.12
Weighted Average Common Shares
Outstanding 3,136,266 3,501,808
Diluted Income Per Common Share $ 0.07 $ 0.12
Weighted Average Shares Outstanding 3,153,316 3,623,418
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 SEC reports. The Company assumes no obligation to update the information included in this press release.