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Armanino Foods of Distinction, Inc. Announces Record Third Quarter Sales As Well As Strong Operating and Net Income

Posted on: Thursday, 30 October 2008, 12:00 CDT

Armanino Foods of Distinction, Inc. (Pink Sheets:AMNF) announced today record third quarter net sales, as well as operating and net income and a loss from discontinued operations for the third quarter and nine-month period ended September 30, 2008.

Net Sales for the third quarter ended September 30, 2008 were a record $5,203,503 as compared to $4,823,548 for the same period in 2007, an increase of 8%. The Company's shift of its sales and marketing focus toward food service chains, begun eighteen months ago, has increased sales at a healthy rate despite economic conditions. Net sales for the nine months ended September 30, 2008 were $14,711,920 as compared $13,649,375, an increase of 8% with all product lines showing increases.

Income from continuing operations before taxes for the third quarter of 2008 was $511,987, compared to $516,269 for the third quarter of 2007, essentially unchanged. Income from continuing operations in the third quarter was temporarily impacted in the third quarter by high raw material costs which have since been reduced by changing suppliers and contractors. Income from continuing operations before taxes for the nine months ended September 30, 2008 was $1,199,900 as compared to $1,050,445 for the comparable period in 2007, an increase of 14%.

The Company announced the write off of equipment associated with its meatball line initially installed in 2001 at its former co-packer's plant located in Lathrop, CA, as well as related costs and expenses including arbitration, associated with the termination of its contract with the co-packer. The divestiture is being accounted for as a discontinued operation pursuant to generally accepted accounting principles. The charge is shown as an extraordinary loss from discontinued operations totaling $482,160 offset by a tax benefit of $188,042 for a net loss of $294,118. The Company has entered into a new co-pack agreement with a Texas contractor to produce its meatball products at more favorable quality and pricing.

Basic earnings per share on net income from continuing operations for the three and nine month 2008 periods amounted to $.009 and $.022 respectively compared to $.009 and $.019 for the comparable 2007 periods. Basic net income per share for the three and nine month 2008 periods amounted to $.001 and $.013, respectively, compared to $.009 and $.019 for the comparable 2007 periods.

William J. Armanino, President and CEO of Armanino Foods said, "Our decision eighteen months ago to focus more efforts on selling to medium-sized food service chains has resulted in higher sales as some consumers have rotated into eating at chain establishments as opposed to the higher end "white table cloth" restaurants. We now cover both market segments."

Armanino continued, "The increase in our sales staff and our increased expenditures in marketing and promotional dollars has also contributed to the three and nine months' sales and profit increase."

Armanino concluded, "As previously stated, we continue to be positive about sales and profitability for the balance of 2008."

Armanino Foods of Distinction, Inc. is an international food company that manufactures and markets frozen Italian specialty food items such as pesto sauces, filled pastas and lasagna 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, Ancho Chile, Mediterranean and Alfredo sauce. Armanino's Organic line includes the classic Basil Pesto as well as Dried Tomato & Garlic Pesto. Frozen pastas, sauces, spreads, meatballs and Focaccia are also offered by Armanino Foods.

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.

Armanino Foods of Distinction, Inc. Results For The Quarter Ended 9/30/08 (unaudited) ---------------------------------------------------------------------- 2008 2007 ---------------------------------------------- =========== =========== ---------------------------------------------- ----------- ----------- Net Sales $5,203,503 $4,823,548 ---------------------------------------------- ----------- ----------- Income From Cont. Operations Before Taxes $511,987 516,269 ---------------------------------------------- ----------- ----------- Net Income Before Extraordinary Loss $319,812 322,424 ---------------------------------------------- ----------- ----------- Extraordinary Loss From Discontinued Operations (Net of Taxes) $(294,118) -- ---------------------------------------------- ----------- ----------- Net Income $25,694 322,424 ---------------------------------------------- ----------- ----------- Basic Income/(Loss) Per Common Share: ---------------------------------------------- ----------- ----------- Net Income Before Extraordinary Loss $0.009 $0.009 ---------------------------------------------- ----------- ----------- Extraordinary Loss From Discontinued Operations (Net of Taxes) $(0.008) -- ---------------------------------------------- ----------- ----------- Net Income $0.001 $0.009 ---------------------------------------------- ----------- ----------- Diluted Income / (Loss) Per Common Share: ---------------------------------------------- ----------- ----------- Net Income Before Loss from Discontinued Operations $0.009 $0.009 ---------------------------------------------- ----------- ----------- Extraordinary Loss From Discontinued Operations (Net of Taxes) $(0.008) -- ---------------------------------------------- ----------- ----------- Net Income $0.001 $0.009 ---------------------------------------------- ----------- ----------- Common Shares Outstanding: ---------------------------------------------- ----------- ----------- Weighted Average(a) 34,664,380 34,636,380 ---------------------------------------------- ----------- ----------- Diluted Weighted Average(a) 35,124,083 35,183,336 ---------------------------------------------- ----------- ----------- (a) Note: Shares shown at post 2:1 split of March 2008 ---------------------------------------------------------------------- Results For The Nine Months Ended 9/30/08 (unaudited) ---------------------------------------------------------------------- 2008 2007 ---------------------------------------------- =========== =========== ---------------------------------------------- ----------- ----------- Net Sales $14,711,920 $13,649,375 ---------------------------------------------- ----------- ----------- Income From Cont. Operations Before Taxes $1,199,900 $1,050,445 ---------------------------------------------- ----------- ----------- Net Income Before Extraordinary Loss $754,439 $663,272 ---------------------------------------------- ----------- ----------- Extraordinary Loss From Discontinued Operation (Net of Taxes) $(294,118) -- ---------------------------------------------- ----------- ----------- Net Income $460,321 $663,272 ---------------------------------------------- ----------- ----------- Basic Income/(Loss) Per Common Share: ---------------------------------------------- ----------- ----------- Net Income Before Extraordinary Loss $0.022 $0.019 ---------------------------------------------- ----------- ----------- Extraordinary Loss From Discontinued Operations (Net of Taxes) $(0.008) -- ---------------------------------------------- ----------- ----------- Net Income $0.013 $0.019 ---------------------------------------------- ----------- ----------- Diluted Income / (Loss) Per Common Share: ---------------------------------------------- ----------- ----------- Net Income Before Extraordinary Loss $0.021 $0.019 ---------------------------------------------- ----------- ----------- Extraordinary Loss From Discontinued Operations (Net of Taxes) $(0.008) -- ---------------------------------------------- ----------- ----------- Net Income $0.013 $0.019 ---------------------------------------------- ----------- ----------- Common Shares Outstanding: ---------------------------------------------- ----------- ----------- Weighted Average(a) 34,664,380 34,636,380 ---------------------------------------------- ----------- ----------- Diluted Weighted Average(a) 35,180,714 35,201,036 ---------------------------------------------- ----------- ----------- (a) Note: Shares shown at post 2:1 split of March 2008 ----------------------------------------------------------------------

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.

Source: Business Wire

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