Financial Summary:
$ in millions, except per share amounts | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||||||
| $ | 21.7 | $ | 19.7 | 10.0 | % | $ | 61.7 | $ | 56.6 | 8.9 | % | |||||||||||||
Gross Profit | $ | 10.1 | $ | 9.7 | 3.3 | % | $ | 29.7 | $ | 26.5 | 12.1 | % | ||||||||||||
As a % of | 46.5 | % | 49.5 | % | -3.0pts | 48.1 | % | 46.7 | % | 1.4pts | ||||||||||||||
Operating Income | $ | 6.0 | $ | 6.2 | -1.8 | % | $ | 18.6 | $ | 17.5 | 6.1 | % | ||||||||||||
As a % of | 27.9 | % | 31.3 | % | -3.4pts | 30.1 | % | 30.9 | % | -0.8pts | ||||||||||||||
Net Income | $ | 4.6 | $ | 4.8 | -4.2 | % | $ | 14.2 | $ | 13.6 | 4.7 | % | ||||||||||||
Earnings per Share (Diluted) | $ | 0.1484 | $ | 0.1533 | -3.2 | % | $ | 0.4555 | $ | 0.4323 | 5.4 | % | ||||||||||||
Non-GAAP Gross Profit | $ | 10.7 | $ | 9.7 | 10.0 | % | $ | 30.8 | $ | 26.5 | 16.3 | % | ||||||||||||
As a % of | 49.5 | % | 49.5 | % | 0.0pts | 49.9 | % | 46.7 | % | 3.1pts | ||||||||||||||
Non-GAAP Operating Income | $ | 7.3 | $ | 6.2 | 16.5 | % | $ | 20.9 | $ | 17.6 | 18.8 | % | ||||||||||||
As a % of | 33.6 | % | 31.7 | % | 1.9pts | 33.9 | % | 31.1 | % | 2.8pts | ||||||||||||||
Non-GAAP Net Income | $ | 5.5 | $ | 4.8 | 13.0 | % | $ | 15.9 | $ | 13.7 | 16.7 | % | ||||||||||||
Non-GAAP Earnings per Share (Diluted) | $ | 0.1775 | $ | 0.1555 | 14.2 | % | $ | 0.5113 | $ | 0.4354 | 17.4 | % | ||||||||||||
Third Quarter 2026 and Recent Business Highlights:
- Delivered 10% net sales growth, driven by continued momentum across core
U.S. Foodservice , National Accounts, and International markets. - Generated
$6.0 million in reported operating income, representing 27.9% of net sales, and$7.3 million of non-GAAP operating income, representing 33.6% of net sales, an increase of approximately 190 basis points vs. Q3 2025; non-GAAP operating income grew by 16.5% year-over-year. - Achieved 20% growth in secondary sauces, reinforcing the Company's progress in expanding specialty sauces beyond pesto.
Increased International business to 10% of total company sales, reflecting continued market penetration and growing demand across international markets.- Advanced National Accounts partnerships, including the national launch of a co-developed Gochujang Carbonara sauce with Noodles & Company. In addition, the Company expanded its partnership with Wonder, a growing multi-concept restaurant platform focused on convenience and delivery, with the nationwide introduction of
Royal Miso and Pomegranate Vinaigrette dressings, building on its existingBasil Pesto and Romesco sauces. - The Mountain House manufacturing expansion remains on schedule and within budget, targeting production in Q2 2027.Maintained a strong financial position, with
$29.5 million in cash and cash-equivalents and no debt.
Management Commentary:
"We are seeing tangible progress against our growth agenda. Our core
"We are also advancing the infrastructure required to support our next phase of growth. Our Mountain House manufacturing facility remains on schedule and within budget, with production targeted for the second quarter of 2027. This investment is designed to increase capacity, enhance operating efficiencies and position
"We are making these investments while navigating an increasingly challenging cost environment. Inflation, tariffs, and rising commodity costs continue to create pressure, and we anticipate these headwinds will intensify into the fourth quarter. We are also managing planned manufacturing transition expenses and working capital requirements, including inventory investments extending into the second quarter of 2027. Our strong adjusted profitability and
"As I look ahead, my confidence in
Third Quarter 2026 Financial Results
Net sales for the quarter increased 10% year-over year to
Reported gross profit totaled
Reported operating expenses were
Reported operating income totaled
Reported net income was
See the Use of Non-GAAP Measures discussion below for more information on the non-GAAP metrics mentioned in this section.
Capital Allocation and Balance Sheet
The Company ended the quarter with
Q3 Earnings Call and Webcast
Management will host an investor conference call at
Date:
Time:
International: 1-201-389-0879
Webcast: AMNF Q3 FY2026 Earnings Conference Call
Please join at least five minutes before the start of the call to ensure timely participation.
A telephonic replay of the conference call will also be available through
About Armanino Foods of Distinction, Inc.
Armanino Foods of Distinction, Inc. (OTCQX: AMNF) is a leading producer and marketer of premium frozen Italian and specialty foods serving retail, foodservice and industrial customers across North America and select international markets. Best known for its top selling Basil Pesto, the Company's product line spans a wide variety of sauces and stuffed pasta dishes, chiefly produced in a British Retail Consortium Global Standards Grade AA facility with rigorous quality systems and scalable packaging formats to meet customer needs. To learn more, please visit the Company's website at armaninofoods.com.
Cautionary Statements Regarding Forward-Looking Information
Statements in this news release regarding our expectations and beliefs about our future financial performance and trends in our markets are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."
The forward-looking statements in this news release regarding our future financial performance are based on current information and because our business is subject to several risks and uncertainties, actual operating results in the future may differ significantly from the future financial performance expected at the current time. Those risks and uncertainties may include, among others: economic factors affecting consumer confidence and discretionary spending and reducing the consumption of food prepared away from home; cost inflation/deflation and commodity volatility; competition; reliance on third party suppliers and interruption of product supply or increases in product costs; changes in the Company's relationships with customers and group purchasing organizations; the Company's ability to increase or maintain the highest margin portions of the Company's business; achievement of expected benefits from cost savings initiatives; increases in fuel costs; changes in consumer eating habits; cost and pricing structures and other governmental regulation. The forward-looking statements contained in this press release speak only as of the date of this press release and are based on information and estimates available to the Company at this time. We undertake no obligation to update or revise any forward-looking statements, except as may be required by law.
Investor Relations Contact
Lucas A. Zimmerman
Managing Director
MZ Group - MZ North America
(262) 357-2918
AMNF@mzgroup.us
www.mzgroup.us
Unaudited Condensed Consolidated Statements of Operations
| Quarter Ended | Nine Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| $ | 21.7 | $ | 19.7 | $ | 61.7 | $ | 56.6 | |||||||||
Cost of goods sold | 11.6 | 9.9 | 32.0 | 30.2 | ||||||||||||
Gross profit | 10.1 | 9.7 | 29.7 | 26.5 | ||||||||||||
Operating expenses: | ||||||||||||||||
General, administrative and selling expense | 2.2 | 2.2 | 5.8 | 4.4 | ||||||||||||
Salaries & wages | 1.5 | 1.0 | 4.3 | 3.6 | ||||||||||||
Commissions | 0.3 | 0.4 | 1.0 | 1.0 | ||||||||||||
Total operating expenses | 4.0 | 3.6 | 11.1 | 9.0 | ||||||||||||
Income from operations | 6.0 | 6.2 | 18.6 | 17.5 | ||||||||||||
Other Income / (Expense) | 0.3 | 0.3 | 0.8 | 0.8 | ||||||||||||
Income before income taxes | 6.3 | 6.4 | 19.4 | 18.3 | ||||||||||||
Income taxes | 1.7 | 1.6 | 5.2 | 4.7 | ||||||||||||
Net income | $ | 4.6 | $ | 4.8 | $ | 14.2 | $ | 13.6 | ||||||||
| Earnings per common and equivalent shares: | ||||||||||||||||
Basic earnings per share | $ | 0.1489 | $ | 0.1534 | $ | 0.4602 | $ | 0.4324 | ||||||||
Weighted average common shares outstanding | 30.7 | 31.1 | 30.9 | 31.4 | ||||||||||||
Diluted earnings per share | $ | 0.1484 | $ | 0.1533 | $ | 0.4555 | $ | 0.4323 | ||||||||
Weighted average common shares outstanding assuming dilution | 30.8 | 31.1 | 31.2 | 31.4 | ||||||||||||
Unaudited Condensed Consolidated Balance Sheets
$ in millions | As of | |||||||
| 2026 | 2025 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 29.5 | $ | 29.5 | ||||
Accounts receivable, net | 13.4 | 11.8 | ||||||
Inventories, net | 4.7 | 4.7 | ||||||
Prepaid Expenses | 1.1 | 0.7 | ||||||
Total Current Assets | 48.7 | 46.7 | ||||||
Property and Equipment, Net | 10.3 | 8.6 | ||||||
Deposits | 0.3 | 0.1 | ||||||
Operating lease right of use asset | 10.7 | 0.7 | ||||||
| 0.4 | 0.4 | |||||||
Trademarks | 0.1 | 0.1 | ||||||
Total Non-Current Assets | 21.7 | 9.9 | ||||||
TOTAL ASSETS | $ | 70.4 | $ | 56.6 | ||||
LIABILITIES AND STOCKHOLDER'S EQUITY | ||||||||
Accounts Payable | $ | 4.3 | $ | 4.7 | ||||
Contract Liabilities | 0.6 | 2.3 | ||||||
Accrued Payroll and Payroll Taxes | 1.5 | 1.4 | ||||||
Phantom Stock Liability | 0.9 | 2.2 | ||||||
Operating Lease Liability ST | 0.5 | 0.7 | ||||||
Dividends Payable | 1.6 | 1.6 | ||||||
Income Taxes Payable | 0.5 | -- | ||||||
Total Current Liabilities | 10.0 | 12.8 | ||||||
Operating Lease Liability LT | 10.4 | 0.1 | ||||||
Deferred Tax Liability LT | 0.6 | 0.6 | ||||||
Total Non-Current Liabilities | 11.0 | 0.6 | ||||||
Total Liabilities | 20.9 | 13.4 | ||||||
Common Stock | 2.8 | 2.8 | ||||||
Treasury Stock | -12.0 | -7.5 | ||||||
| 1.5 | 0.3 | |||||||
Retained Earnings | 57.2 | 47.6 | ||||||
Total Stockholder's Equity | 49.5 | 43.1 | ||||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ | 70.4 | $ | 56.6 | ||||
Use of Non-GAAP Measures
In preparing the Company's non-GAAP gross profit, non-GAAP operating income, non-GAAP earnings before interest, taxes, depreciation and amortization (EBITDA) and non-GAAP net income, the Company excluded items that either have a non-recurring impact on our financial performance or which, in the judgment of our management, are not reflective of our underlying business performance. The items excluded from our non-GAAP gross profit, non-GAAP operating income, non-GAAP earnings before interest, taxes, depreciation and amortization (EBITDA) non-GAAP net income and non-GAAP EPS include:
- Costs resulting from the upcoming relocation of production operations from the Company's current production facility in
Hayward, California to its new production facility in Mountain House,California , including accelerated depreciation of leasehold improvements to theHayward facility, rent expense on the Mountain House facility prior to occupancy, and employee retention bonuses. - Non-cash expenses related to our equity compensation
The Company's non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with GAAP. For a definition and reconciliation of income from operations to non-GAAP income from operations and net income to non-GAAP net income, their corresponding GAAP measure, please see the reconciliation table shown below.
Reconciliation of GAAP to Non-GAAP Metrics
$ in millions, except per share amounts | Quarter Ended | Nine Months Ended | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
GAAP gross profit | $ | 10.1 | $ | 9.7 | $ | 29.7 | $ | 26.5 | ||||||||
Facility relocation costs | 0.7 | -- | 1.1 | -- | ||||||||||||
Non-GAAP gross profit | 10.7 | 9.7 | 30.8 | 26.5 | ||||||||||||
% of net sales | 49.5 | % | 49.5 | % | 49.9 | % | 46.7 | % | ||||||||
% Y/Y growth | 10.0 | % | -- | 16.3 | % | -- | ||||||||||
GAAP income from operations | $ | 6.0 | $ | 6.2 | $ | 18.6 | $ | 17.5 | ||||||||
Facility relocation costs | 1.0 | -- | 1.6 | -- | ||||||||||||
Stock-based compensation expense | 0.3 | 0.1 | 0.8 | 0.1 | ||||||||||||
Non-GAAP income from operations | 7.3 | 6.2 | 20.9 | 17.6 | ||||||||||||
% of net sales | 33.6 | % | 31.7 | % | 33.9 | % | 31.1 | % | ||||||||
% Y/Y growth | 16.5 | % | -- | 18.8 | % | -- | ||||||||||
GAAP earnings before interest, taxes, depreciation and amortization (EBITDA) | $ | 7.1 | $ | 6.7 | $ | 20.8 | $ | 18.4 | ||||||||
Facility relocation costs | 1.0 | -- | 1.6 | -- | ||||||||||||
Stock-based compensation expense | 0.3 | 0.1 | 0.8 | 0.1 | ||||||||||||
Non-GAAP earnings before interest, taxes, depreciation and amortization (EBITDA) | 8.3 | 6.8 | 23.2 | 18.5 | ||||||||||||
GAAP net income | $ | 4.6 | $ | 4.8 | $ | 14.2 | $ | 13.6 | ||||||||
Facility relocation costs | 0.7 | -- | 1.1 | -- | ||||||||||||
Stock-based compensation expense | 0.2 | 0.1 | 0.6 | 0.1 | ||||||||||||
Non-GAAP net income | 5.5 | 4.8 | 15.9 | 13.7 | ||||||||||||
% of net sales | 25.2 | % | 24.6 | % | 25.8 | % | 24.1 | % | ||||||||
% Y/Y growth | 13.0 | % | -- | 16.7 | % | -- | ||||||||||
Tax rate (1) | 27.4 | % | 25.6 | % | 26.7 | % | 25.8 | % | ||||||||
Non-GAAP diluted earnings per share | $ | 0.1775 | $ | 0.1555 | $ | 0.5113 | $ | 0.4354 | ||||||||
SOURCE:
View the original press release on ACCESS Newswire