HAYWARD, Calif.--(BUSINESS WIRE)--
Armanino Foods of Distinction, Inc. (OTC Pink: AMNF) reported a decrease in its net sales and net income before and after taxes for the second quarter ending June 30, 2020.
Net sales for the second quarter ending June 30, 2020 were $5,135,598, compared to $11,518,343 for the second quarter of 2019, a decrease of 55%. Income/
Net sales for the first six months of 2020 were $14,896,444 compared to $21,287,534 for the same period last year, a decrease of 30%. Income before taxes in this period for 2020 was $487,032, compared to the 2019 amount of $4,660,476, a decrease of 90%. Net income for the first six months of 2020 was $389,626, or $0.0122 per share, compared to $3,541,873, or $0.1105 per share posted for the same period in 2019, a decrease of 89%.
Tim Anderson, President and CEO of Armanino Foods said, “The negative impact of COVID-19 and corresponding governmental protection programs on our second quarter results was less severe than anticipated. We experienced a steady increase in sales and margins since the lowest point of the pandemic in early April, particularly in the domestic market. This upward trend continued through the end of the quarter. The economy, trends and consumer behaviors are still relatively unknown and will take several quarters to truly understand how this pandemic will affect our existing business model going forward. However, that being said, we believe that we are well positioned financially from a balance sheet perspective to weather the storm and strategically invest in diversified channels to capitalize on growth trends.
While promotional spending declined from the prior year and prior quarter driven by lower sales, it was proportionately higher due to seasonal promotional trends and fixed marketing type obligations. Cost of sales were also proportionately higher due to the effects of product mix. Despite our reporting a net loss this quarter, we remain profitable for the six months then ended. For additional perspective, we were performing against the highest quarterly sales and profits, ever reported in the second quarter of 2019.”
Anderson continued, “We continue to manage our overall working capital by closely monitoring our inventory levels, the collection of our accounts receivables, and closely managing our cash spending. Our accounts receivables are largely current and have been replenished with sales that we have generated this quarter. As we previously communicated, we fully paid off our equipment loan in this quarter with the $320,000 savings generated by reducing our second quarter dividend declaration.”
Anderson concluded, “We remain guarded on our future outlook as the dynamic nature of the pandemic limits our ability to estimate the full financial impact beyond Q2 with reasonable accuracy. However, we are hopeful that the worst is behind us. We continue to conduct stress test analysis under extreme business scenarios in order to measure our business capabilities and plan accordingly during the pandemic.”
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.
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2020 |
2019 |
||||
Net Sales |
$5,135,598 |
$11,518,343 |
||||
Income/ |
<$894,853> |
$2,770,233 |
||||
Net Income/ |
<$715,883> |
$2,105,377 |
||||
Basic Income/ |
<$0.0223> |
$0.0657 |
||||
Weighted Average Common Shares Outstanding |
32,065,645 |
32,065,645 |
||||
Diluted Income/ |
<$0.0223> |
$0.0657 |
||||
Diluted Weighted Average Common Shares Outstanding |
32,065,645 |
32,065,645 |
||||
|
|
|
||||
Armanino Foods of Distinction, Inc.
|
||||||
|
2020 |
2019 |
||||
Net Sales |
$14,896,444 |
$21,287,534 |
||||
Income Before Taxes |
$487,032 |
$4,660,476 |
||||
Net Income |
$389,626 |
$3,541,873 |
||||
Basic Income Per Common Share |
$0.0122 |
$0.1105 |
||||
Weighted Average Common Shares Outstanding |
32,065,645 |
32,065,645 |
||||
Diluted Income Per Common Share |
$0.0122 |
$0.1105 |
||||
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.
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