EXHIBIT 99
ARMANINO FOODS OF DISTINCTION, INC.
For Immediate Release For More Information Contact:
October 21, 2003 William Armanino, President & CEO
Edmond J. Pera, CFO
(510) 441-9300
ARMANINO FOODS OF DISTINCTION, INC.
ANNOUNCES THIRD QUARTER FINANCIAL RESULTS
Hayward, CA (October 21, 2003) Armanino Foods of Distinction, Inc.
(NASDAQ Small Cap Symbol: ARMF) announced today net sales, operating and net
income for the third quarter and nine-month period ended September 30, 2003.
Net sales have been restated for 2003 and 2002 to reflect an accounting
change which reports net sales as being reduced by promotion expenses. The
Company previously reported promotional costs as expense items. Net income
remains the same.
Net sales for the third quarter ended September 30, 2003 amounted to
$3,317,230 as compared to $3,407,071 for the same period in 2002 a decrease of
3%. Net sales for the nine months ended September 30, 2003 were $9,882,356 as
compared to $10,158,947, a decrease of 3%. During the latter half of the
quarter ended September 30, 2003 the Company saw signs that sales were gaining
momentum.
Income from continuing operations before taxes for the third quarter of
2003 was $281,084 compared to $12,653 for the third quarter of 2002. The third
quarter profit is primarily attributable to higher food service and retail
gross margins, coupled with administrative expense reductions implemented by
management. Income from continuing operations before income taxes for the nine
months ended was $172,677 compared to $311,768 a year ago.
Net income from continuing operations for the third quarter of 2003
amounted to $184,110 or $0.06 per share compared to the September 2002 quarter
which amounted to $7,212 or $0.00 per share. Net income from continuing
operations for the nine months of 2003 amounted to $113,103 or $0.03 per share
compared to September 2002 of $189,708 or $0.06 per share.
Net income for the third quarter of 2003 was $184,110 or $0.06 per share
compared to a net loss of $(861,517) or $(0.27) per share for the third
quarter of 2002. In the third quarter of 2002 the Company wrote off plant
equipment which resulted in an after tax loss of $(868,729) or $(0.27) per
share. Net income for the nine months ended September 30, 2003 was $113,103 or
$0.03 per share compared to a net loss of $(679,021) or $(0.21) per share for
the nine months ended September 30, 2002.
William J. Armanino, President and CEO of Armanino Foods said, "The
promotional dollars we spent over the last year are now paying off. Our retail
business, after promotion expenses and the exclusion of a major retailer's
private label program, is up a healthy 109% over a year ago. This trend is
indicative that the retail consumer is repurchasing our products in
non-promotion periods."
-Continued-
Armanino continued, "We have made major strides in introducing our Garlic
Zing product line throughout the Western United States. In addition, we have
created retail packs of chicken nuggets and strips for which we are currently
taking orders in California. We anticipate significant volume for these two
items. In food service, we are definitely seeing signs that the white
tablecloth business is on the rebound, which bodes well for us in future
periods. We also have a major sales effort underway to introduce our new
spreads to major sandwich shop chains throughout the country."
Armanino concluded, "We had one of our strongest quarters in recent
history and we look forward to this trend continuing provided the general
economy continues to strengthen. Our balance sheet remains strong and we are
optimistic about the future."
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.
-Continued-
___________________________________________________________________________
Armanino Foods of Distinction, Inc.
RESULTS FOR THE QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2003
(Unaudited)
Quarter Ended 9/30/03
---------------------
2003 2002
---- ----
Net Sales 3,317,230 3,407,071
Net Income From Cont. Oper. Before Taxes 281,084 12,653
Net Income Before Discontinued Operations 184,110 7,212
Loss From Discontinued Operations
(Net of Taxes) (868,729)
Net Income/(Loss) 184,110 (861,517)
Basic Income/(Loss) Per Common Share
Net Income From Continuing Operations 0.06 0.00
Loss From Discontinued Operations - (0.27)
Net Income/(Loss) 0.06 (0.27)
Weighted Average Common Shares Outstanding 3,275,108 3,250,108
Diluted Income/(Loss) Per Common Share
Net Income From Continuing Operations 0.06 0.00
Loss From Discontinued Operations - (0.26)
Net Income/(Loss) 0.06 (0.26)
Weighted Average Common Shares Outstanding 3,330,701 3,319,707
___________________________________________________________________________
(Unaudited)
Nine Months Ended 9/30/03
-------------------------
2003 2002
---- ----
Net Sales 9,882,356 10,158,947
Net Income From Cont. Oper. Before Taxes 172,677 311,768
Net Income Before Discontinued Operations 113,103 189,708
Loss From Discontinued Operations
(Net of Taxes) (868,729)
Net Income/(Loss) 113,103 (679,021)
Basic Income/(Loss) Per Common Share
Net Income From Continuing Operations 0.03 0.06
Loss From Discontinued Operations - (0.27)
Net Income/(Loss) 0.03 (0.21)
Weighted Average Common Shares Outstanding 3,258,533 3,228,168
Diluted Income/(Loss) Per Common Share
Net Income From Continuing Operations 0.03 0.05
Loss From Discontinued Operations - (0.25)
Net Income/(Loss) 0.03 (0.20)
Weighted Average Common Shares Outstanding 3,289,089 3,474,719
___________________________________________________________________________
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.
END