Armanino Foods of Distinction, Inc. (Nasdaq:ARMF) announced yesterday net sales, operating and net income, and basic and diluted earnings per share for the third quarter and nine month periods ended September 30, 2001.
Net sales for the third quarter ended September 30, 2001 amounted to $3,960,522 as compared to $3,353,563, for the same period in 2000, an increase of 18%. The quarterly sales increase is attributable to incremental sales of the Company’s meatball and breaded chicken product lines purchased from Pan Ready Foods. Net sales for the nine months ended September 30, 2001 were $10,654,198 as compared to $10,341,697, an increase of 3%.
Income from continuing operations before income taxes for the third quarter of 2001 was $421,946 compared to $368,423 for the third quarter of 2000. The increase of 15% is consistent with the incremental sales attributable to the Company’s meatball and breaded chicken products. Income from continuing operations before income taxes for the nine months ended September 30, 2001 was $820,162 as compared to $1,074,351, a decrease of 24%. The decrease is primarily attributable to heavier than customary promotional and marketing expenditures made in the first three quarters of 2001 which were invested to promote increased sales in future quarters.
Net income for the third quarter amounted to $236,290 as compared to $221,054 for the same period a year ago, an increase of 7%. Basic and dilutive earnings per share for the 2001 quarter were $0.08 and $0.07 respectively, compared to basic and dilutive earnings per share of $0.07 for the same quarter a year ago. Net income for the nine months of 2001 amounted to $459,291 as compared to $644,611 for the nine months ended a year ago. Basic and diluted earnings per share amounted to $0.15 for the nine months ended September 30, 2001 as compared to basic and diluted earnings per share of $0.19 and $0.18, respectively, for the same period in 2000.
William J. Armanino, President and CEO of Armanino Foods said, “Our third quarter achievements are among the most important we have had. First, we launched the product lines acquired from Pan Ready Foods and successfully retained a large portion of its customer base. We expect these product lines to contribute significantly to revenues. The acquisition of these product lines has allowed us to expand our marketing to food service customers in the Western United States. Secondly, our pesto sauces and pasta products have recently been approved by a number of retail chains in Northern and Southern California as well as Arizona. They will be appearing in a number of supermarket freezer cases toward the end of the fourth quarter and beginning of the first quarter of 2002. In order to meet the high expectation of the major chains, we will be launching numerous demo’s of our products and commencing in-store couponing to promote brand awareness and build and solidify customer business. We anticipate strong revenue growth over the next quarters as we roll out our products to these new supermarket chain customers. Thirdly, as previously announced, we have set aside $250,000 to repurchase our common stock so that we can be ready to take advantage of market conditions as they present themselves. We continue to believe that the company’s stock represents an excellent value.”
Armanino concluded, “We believe we have now put into place the building block for significant growth in sales and earnings in the future.”
Armanino is an international food company that manufactures and markets frozen pestos, filled pasta products, sauced entrees, meatballs, cooked meat, cooked 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 9/30/01
Quarter Ended 9/30
Net Sales $3,960,522 $3,353,563
Net Income From Cont. Oper. Before Taxes $ 421,946 $ 368,423
Net Income $ 236,290 $ 221,054
Basic Income Per Common Share $ 0.08 $ 0.07
Weighted Average Common Shares Outstanding 3,166,208 3,129,608
Diluted Income Per Common Share $ 0.07 $ 0.07
Weighted Average Shares Outstanding 3,179,413 3,196,044
Nine Months Ended 9/30
Net Sales $10,654,198 $10,341,697
Net Income From Cont. Oper. Before Taxes $ 820,162 $ 1,074,351
Net Income $ 459,291 $ 644,611
Basic Income Per Common Share $ 0.15 $ 0.19
Weighted Average Common Shares Outstanding 3,146,385 3,376,836
Diluted Income Per Common Share $ 0.15 $ 0.18
Weighted Average Shares Outstanding 3,166,742 3,495,780
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.