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ARMANINO
FOODS OF DISTINCTION, INC.
ANNOUNCES FOURTH QUARTER AND YEAR END
FINANCIAL RESULTS
Hayward, CA (February 17, 2005)
Armanino Foods of Distinction, Inc. (NASDAQ Small Cap Symbol: ARMF) announced
today net sales, operating and net income and earnings per share for the fourth
quarter and year ended December 31, 2004.
Net sales for the fourth quarter ended December 31, 2004 were
$3,433,016 compared to $3,611,449 for the fourth quarter of 2003, a decrease of
5%. Net sales for the year ended December 31, 2004 were $13,138,264 compared to
2003 sales of $13,493,805, a decrease of 3%. Lower overall sales for the year
2004 was partially attributable to lower first half pasta sales that were
impacted by the low carb diet trend.
Net income before taxes for the fourth quarter ended December
31, 2004 was $52,672 compared to $176,717 for the same quarter a year ago. This
decrease in income before taxes is partially attributable to non-recurring
administrative costs. Net income before taxes for the year ended December 31,
2004 was $385,602 compared to $349,394 in the year ended December 31, 2003, an
increase of 10%. The increase in 2004 is partially attributable to gross margin
increases, based on a product mix that favored higher margin products. The
increase was diminished by the expense incurred for three additional sales
people that joined the company during the year.
Net
income for the fourth quarter ended December 31, 2004 amounted to $78,915
compared to $155,743 for the fourth quarter of 2003. Basic and diluted income
per common share for the fourth quarter of 2004 amounted to $0.02 compared to
basic income per common share of $0.05 and diluted income per common share of
$0.04 for the fourth quarter of 2003. Net income for the year ended December 31,
2004 amounted to $315,295, an increase of 17%. Net income for the year ended
December 31, 2003 amounted to $268,846. Basic and diluted income per common
share for the year ended December 31, 2004 amounted to $0.09 per share compared
to basic and diluted income per common share of $0.08 for the year ended
December 31, 2003.
William J. Armanino, President and CEO of Armanino Foods
said, “Because we invested in 2004 by doubling our food service sales team, we
expect significant food service sales increases in 2005. Additionally, we
believe that the low carb diet trend is fading out, and so we look forward to
sizeable sales growth this year in our retail business.”
Armanino concluded, “The Company
is looking to have a strong 2005 with our increased sales force and our
strategies to gather new business. We believe that our strong balance sheet,
with more than adequate working capital, will fund operations and maintain our
dividend policy. We have already invested in capital equipment which can take us
to the next level of production capacity without material additional capital
investment.”
Armanino is an international food company that
manufactures and markets frozen pestos, filled pasta products, meatballs, cooked
meat, cooked poultry products, garlic spreads and focaccia to the retail, food
service, club stores, institutional, and industrial food industry segments.
Fourth Quarter Chart
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.
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