EXHIBIT 99
For Immediate Release For More Information Contact:
February 11, 2004 William J. Armanino, President & CEO
Edmond J. Pera, COO
(510) 441-9300
ARMANINO FOODS OF DISTINCTION, INC.
ANNOUNCES FOURTH QUARTER AND YEAR END FINANCIAL RESULTS
Hayward, CA (February 11, 2004) 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, 2003.
Net sales for the fourth quarter ended December 31, 2003 were $ 3,611,449
compared to $3,771,968 for the fourth quarter of 2002, a decrease of 4%. Net
sales for the year ended December 31, 2003 were $13,493,805 compared to 2002
sales of $13,930,916 a decrease of 3%.
Net sales for 2002 have been restated to reflect a change in presentation
of promotional costs. Net sales are now reported net of promotional costs. The
Company previously classified promotional costs as operating expenses. This
change in presentation of net sales has no impact on past or present reporting
of net income.
Income from continuing operations for the fourth quarter ended December
31, 2003 was $176,717 compared to $158,517 for the same quarter a year ago.
This 11% increase is primarily attributable to lower amortized slotting costs
and a reduction in promotional expenses and administrative overhead. Income
from continuing operations for the year ended December 31, 2003 was $349,394
compared to $470,285 for the year ending in 2002. The decrease in operating
profits reflects a slow first half of the year that was partially offset by a
167% increase in operating income in the second half of the year.
William J. Armanino, President and CEO of Armanino Foods said, "There was
a definite positive swing in momentum in the second half of the year as we saw
gross margin enhancement. This increase in gross margin along with tighter
control on expenses significantly leveraged operating income higher in the
second half of 2003. We are looking to build on these improvements in 2004."
Income before discontinued operations for the fourth quarter ended
December 31, 2003 was $155,743 compared to $215,755 for the same quarter of
2002. Income before discontinued operations for the fourth quarter of 2002 was
favorably impacted by a tax credit of approximately $100,000 for product sales
to foreign countries in years 2001 and 2002. The tax credit for 2003 has been
amortized over all four quarters. Income before discontinued operations for
the year ended December 31, 2003 was $228,853 compared to $405,463 for the
year ended December 31, 2002.
Armanino continued, "The tax credit is generated by our export sales to
Japan. We expect to increase sales to Japan in 2004."
Net income for the fourth quarter ended December 31, 2003 was $155,743
compared to $287,792 for the fourth quarter of 2002. The income for the fourth
quarter of 2002 included a favorable adjustment of $72,037 in relation to the
discontinued entree line, which had been written off in the third quarter of
2002. Net income for the year ended December 31, 2003 amounted to $268,846
compared to a net loss of $391,229 in 2002, which reflected the write-off of
the entree line.
Armanino continued, "All areas of our business are budgeted to increase
in 2004 with significant contributions expected from our retail products,
including our Garlic Zing product line which was initially introduced in
mid-2003 and will soon be introduced to major retailers in Northern
California."
Armanino concluded, "The Company is positioned to have a strong 2004 with
all of our new programs in place. We also believe our strong balance sheet
with no long term debt and with more than adequate working capital will fund
operations, maintain our dividend and allow us to make necessary capital
expenditures, when and if needed."
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.
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ARMANINO FOODS OF DISTINCTION, INC.
RESULTS FOR THE QUARTER AND TWELVE MONTHS ENDED DECEMBER 31, 2003
(Unaudited)
Quarter Ended
12/31/03
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12/31/03 12/31/02
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Net Sales 3,611,449 3,771,968
Income From Cont. Oper. Before Taxes 176,717 158,517
Income Before Discontinued Operation 155,743 215,755
Income From Discontinued Operation (Net
of Taxes) 72,037
Net Income 155,743 287,792
Basic Income Per Common Share
Net Income From Continuing Operations 0.05 0.07
Net Income 0.05 0.09
Weighted Average Common Shares Outstanding 3,314,619 3,250,108
Diluted Income Per Common Share
Income From Continuing Operations 0.04 0.07
Net Income 0.04 0.09
Weighted Average Common Shares Outstanding 3,514,286 3,281,817
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(Unaudited)
Twelve Months
Ended
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12/31/03 12/31/02
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Net Sales 13,493,805 13,930,916
Income From Cont. Oper. Before Taxes 349,394 470,285
Income Before Discontinued Operations 268,846 405,463
Loss From Discontinued Operations (Net of
Taxes) (796,692)
Net Income / (Loss) 268,846 (391,229)
Basic Income / (Loss) Per Common Share
Net Income From Continuing Operations 0.08 0.13
Net Income (Loss) 0.08 (0.12)
Weighted Average Common Shares Outstanding 3,272,670 3,233,698
Diluted Income (Loss) Per Common Share
Income From Continuing Operations 0.08 0.12
Net Income (Loss) 0.08 (0.11)
Weighted Average Common Shares Outstanding 3,421,491 3,404,528
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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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