about • history • news • production • marketing 

Armanino Foods of Distinction
Reports Record Sales and Earnings for 4th Quarter 
Net Income and EPS Doubled

HAYWARD, Calif., March 1 ----(For Immediate Release) Armanino Foods of Distinction, Inc. (AMNF) today reported record sales, earnings and earnings per share for the fourth quarter of 2005 and the year ended Dec. 31, 2005.

The year-end results, the company said, benefited from a very strong fourth quarter of 2005, in which sales rose 20% from $3,433,016 in the same period the year before to $4,145,308 in the last quarter of 2005. As a result, net income for the fourth quarter rose 208%, from $78,915 in 2004 to $243,778 in 2005, and EPS for the quarter, from zero in 2004 to a penny for the last quarter of 2005.

Net income for the full year more than doubled, from $315,295 the prior year to $647,973 in 2005. As a consequence, earnings per share likewise rose by 102% from 2 cents fully diluted in 2004 to 4 cents for 2005.  

The bottom line gains came on a year-over-year net sale increase of 12.5%, from $13,138,164 in 2004 to $14,780,564 in 2005.

“We were able to report a significant profit gain outpacing the increase in our overall sales because of the strategy we undertook last year to double our food service sales,” said William J. Armanino, the company’s president and CEO.  “This is the highest sales and profit results in the company’s history and I am optimistic for a similar performance in 2006.”

“Our year-over-year earnings increase would have been even more dramatic,” Mr. Armanino continued, “except that in 2004, we benefited from an export tax credit that did not carry over into 2005.”  He said the international sales now represent about 10% of the company’s market --- the company has built a significant international market for its products ---and it has plans to continue to expand internationally in 2006 by entering other overseas markets.

“Even before these gratifying sales and earnings gains,” Mr. Armanino said, “we enjoyed excellent financial health.  We have no long-term debt and a comfortable cash reserve, even when paying our shareholders last year dividends amounting to 8 cents a share.”

During 2005, Armanino shares were split 5-to-1.  All per share numbers including dividends have been adjusted to reflect this and provide an accurate basis for comparison.

Armanino is an international food company that manufactures and markets frozen basil pesto sauce and numerous other sauces such as Cilantro, Dried Tomato Garlic, Roasted Red Bell Pepper, Southwest Chipotle, Artichoke, Mushroom, Alfredo, organic sauces, filled pasta products, meatballs, cooked poultry products, garlic spreads and Focaccia to the food service, industrial, institutional industry.  For 2006, it has an aggressive strategy to include retail sales.

Fourth Quarter Chart

This press release contains forward-looking statements within the meaning of U.S. securities laws. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected. The Company assumes no obligation to update the information included in this press release.