Good afternoon, everyone, and thank you for standing by. Welcome to the Armanino Foods of Distinction Third Quarter 2026 Earnings Conference Call. During today's presentation, all participants will be in a listen-only mode. Following the prepared remarks, the call will be open for questions. This conference call is being held today, Tuesday, November 10th, 2026, and the earnings press release accompanying this conference call was issued after the market closed today. Joining us on the call are Armanino Foods President and Chief Executive Officer Deanna Jurgens and Chief Financial Officer Andrew Leonard. Before we begin, I would like to remind everyone that some of the statements management makes on this call are forward-looking statements that reflect management's current expectations about the future operating and financial results. Although management believes these expectations and assumptions are reasonable, they remain subject to significant risks and uncertainties and actual results could differ materially from what is stated or implied today. For more information, please refer to the forward-looking statements section in today's press release and the additional disclosures in the company's quarterly and annual reports. The forward-looking statements made on this call speak only as of today and the company undertakes no obligation to update them except as required by law. With that, it is my pleasure to turn the call over to Armanino Foods President and Chief Executive Officer, Deanna Jurgens. Deanna, the floor is yours.

Thank you, Luke, and welcome, everyone. It is good to be back with you for our third quarter earnings call. To our longtime shareholders, thank you for your continued confidence in Armanino. And to those who are new to our story, welcome. Armanino's third quarter performance shows that our growth strategy is translating into measurable commercial and financial results as we build on our leadership in food service pesto to capture a broader specialty sauce opportunity. Net sales increased 10% year over year to 21.7 million, with three quarters of our growth coming from pounds sold. Importantly, Our growth is being driven by higher customer demand, not simply pricing. We also delivered strong adjusted profitability. While reported operating income declined 2% to $6 million, reflecting the costs associated with our manufacturing transition, non-GAAP operating income increased 16.5%, with non-GAAP operating margin expanding 190 basis points year-over-year to 33.6%. But what is particularly significant is where our growth is coming from and what it tells us about the future of Armanino. Our core U.S. food service business continues to deliver a strong and profitable foundation. In national accounts, we are converting significant white space opportunities into commercial wins with leading restaurant operators. International is becoming a more meaningful contributor to our business, while our expanding specialty sauce portfolio is broadening the markets and menus we serve. At the same time, our new Mountain House manufacturing facility remains on schedule and within budget, positioning us to support a significantly larger business. Taken together, these results reinforce our confidence in the strategy. strengthened the business that made Armanino successful, unlock new sources of growth, and build the operating platform to help scale our business. Let me now walk through the progress we are making against these priorities. Our US food service business remains the foundation of Armanino's success. We have built a leading position in food service pesto through product quality, reliable service, and Longstanding Customer Relationships. We continue to see opportunities to extend that leadership through broader distribution, new menu innovations and increased penetration with existing customers. We are also gaining traction in prepared foods, supplying sauces used in private label products sold through major retailers, including Walmart and Kroger. Early performance has been encouraging, creating opportunities for additional products and partnerships at retail. We believe our established food service business has considerable room to grow and will remain a key contributor to Armanino's performance. National accounts represents a significant white space opportunity for Armanino, opening doors to customers and categories where we have historically had limited presence. We are now translating that opportunity into national commercial wins. On October 14th, Noodles & Company launched its Gochujang Carbonara Ramen Nationwide, featuring a sauce developed in collaboration with Armanino. This launch demonstrates our ability to take a differentiated culinary concept through development and commercialization at national scale. After validating that capability, Noodles and Company named Armanino its 2026 Food Vendor of the Year, recognizing our innovation, collaboration, and execution. We are also growing our partnership with Wonder, an expanding multi-concept restaurant platform focused on convenience and delivery. Our royal miso and pomegranate vinaigrette dressings are now offered nationwide with Wonders Royal Greens Salad Bowls, complementing the basil pesto and romesco sauces we already supply. These achievements reflect an important shift in our commercial reach. We are moving beyond individual product placements to become a broader culinary partner. creating opportunities to participate in more menu applications and grow alongside leading national operators. International reached an important milestone this quarter, representing 10% of total company sales for the first time. Growth continues to be supported by demand across our Asian markets and the early development of new customer relationships. Our approach is focused, establish a presence with proven products, build strong local partnerships, and expand selectively as demand develops. With our international business contributing to an increasing share of sales, we see a compelling opportunity to diversify our revenue base and extend Armanino's reach into additional markets. Our expanding specialty sauce portfolio is an important driver of growth across all three commercial channels. During the third quarter, secondary sauce sales grew 20% and represented over 15% of total revenue. Products such as chimichurri, Southwest Chipotle, roasted garlic, and harissa are gaining traction. demonstrating the versatility of our culinary capabilities and the increasing relevance of our portfolio across different cuisines and menus. This is more than a product line expansion. It is allowing Armanino to compete for business that historically sat outside our core pesto category. We intend to continue prioritizing innovation with clear commercial demand, strong economics, and opportunities to leverage our existing capabilities. As our commercial business expands, we are investing in the manufacturing infrastructure needed to support it. Mountain House is one of the most significant strategic investments in Armanino's history and I am pleased to report that the project remains on schedule and within budget with production startup targeted for the second quarter of 2027. The new facility will integrate manufacturing, ingredients, packaging, and finished goods storage into a more efficient and agile operation. With future incremental investments aligned to demand, Mountain House has the potential to support up to three times our current production capacity. Importantly, this is not simply a capacity expansion. It is an investment in our ability to support larger customers, manufacture a broader product portfolio, and improve operating efficiency as we scale. We have also begun our planned inventory build and our coordinating production readiness, customer qualification, and supply planning ahead of the transition from Hayward to Mountain House. We recognize the complexity of this transition and remain focused on maintaining product quality, ensuring uninterrupted customer service, and executing a successful production startup. Armanino enters this next phase of growth from a position of financial strength, with $29.5 million in cash at quarter end and no debt. We expect to fund the Mountain House investment through existing cash resources while preserving flexibility to pursue additional opportunities and return capital to shareholders. Our approach remains disciplined. Deploy capital where we see strong returns, preserve financial strength, and invest in opportunities that enhance Armanino's long-term competitive position. The third quarter demonstrates that Armanino's growth strategy is delivering results. Net sales increased double digits, driven primarily from volume, while non-GAAP operating margins expanded and non-GAAP operating income grew 16.5%. At the same time, we secured significant national account wins, accelerated growth in specialty sauces, and reached a new milestone in international. all while advancing the manufacturing investment that will help support the next stage of our growth. What gives me confidence is not simply the strength of our quarterly performance, but what it demonstrates about our future. Our strategy is working and we are building on the leadership and profitability of our core business to capture a much broader growth opportunity. Our focus now is to build on that momentum. execute the Mountain House transition successfully and convert our expanding commercial pipeline into sustained earnings growth. With that, I'll turn the call over to Andrew for a review of our third quarter financial results. Andrew?

Thank you, Deanna, and good afternoon, everyone. As Deanna has discussed, our third quarter financial results reflect strong execution in our core U.S. food service business, and increasing contribution from our key growth opportunities. Net sales for the quarter increased 10% year over year to 21.7 million, driven by particularly strong performance from our international channel and our secondary sources across all of our channels. As I discussed last quarter, we are now incurring various costs related to the build out and transition to our new facility in Mountain House, California. The build-out commenced during Q3, and we plan to relocate our production operations during Q2 of 2027. During Q3 and throughout the duration of the transition, those costs will affect both gross profit and operating income. To help investors understand the underlying performance of the business during this time, we will continue providing non-GAAP adjusted operating income and net income metrics, which adjust both for facility relocation costs and Noncash Equity Compensation Expense, and this quarter we will also begin providing non-GAAP adjusted gross profit in addition to our reported metrics. For Q3 2026, we reported gross margin of 46.5% compared to 49.5% in Q3 2025, excluding facility relocation costs Non-GAAP gross margin was 49.5% in Q3, 2026. Gross margin benefited in the quarter from high utilization of our production facility and lower storage costs due to actions taken earlier in the year to shift inventory to lower cost locations. These benefits were partially offset by freight costs due to higher fuel prices. Reported operating expenses increased 12% year over year to $4 million, including approximately $330,000 of facility relocation costs. Excluding facility relocation costs and non-cash equity compensation expense, operating expenses on a non-GAAP basis were down 2% year over year, primarily due to lower phantom stock compensation expense, which is partially offset by higher headcount costs. Reported operating income declined 2% in Q3, 2026 to 6.0 million, representing operating margin of 27.9% compared to 6.2 million and 31.3% in Q3, 2025. Non-GAAP operating income increased 16.5% in Q3, 2026 to 7.3 million, representing non-GAAP operating margin of 33.6% compared to 6.2 million and 31.7% in Q3 2025. Reported net income decreased 4% year over year to 4.6 million or 15 cents per diluted share compared to 4.8 million or 15 cents per diluted share in Q3 2025. Non-GAAP net income increased 13% to 5.5 million or 18 cents per diluted share compared to 4.8 million or 16 cents per diluted share in Q3 2025. For more detail on the impact of facility relocation costs and non-cash equity compensation expense on gross profit, operating income, and net income in the quarter, please see the non-GAAP disclosure in the press release we issued earlier today with our quarterly results and in our quarterly report, which will be posted later this week. Turning to cash flow, we generated $3.4 million in free cash flow in the quarter. Capital expenditures were $1.6 million in the quarter, reflecting the initial stages of the $20 million capital investment in the Mountain House facility. After paying $1.5 million in dividends to shareholders, we ended the quarter with $29.5 million in cash and no debt, maintaining the flexibility to fund the Mountain House build out from our existing cash resources. Looking forward, we will be building inventory over the next several quarters to ensure uninterrupted supply of product to our customers during the cutover of production from our current facility to our new facility in Q2 2027, which will result in additional relocation-related costs beyond what we are incurring currently. During the final facility switchover in Q2 2027, We expect additional impacts on gross profit and operating income from temporary downtime in our production facilities and the impact of incurring the full cost of two sites concurrently. We are planning for the transition to be complete by the end of Q2 27 and for these non-recurring costs to be largely behind us at that point. And to expand on the point that Deanna made earlier, we are being very intentional in how we handle the organizational aspects of this transition. We have a core team that is actively managing the relocation project and all the potential impacts that such a significant undertaking can have on our business. But we are keeping the majority of the organization laser focused on executing on our core business and our growth opportunities. We will keep you apprised as the transition progresses.

With that, I will turn it back to Deanna.

Thank you, Andrew. As we look ahead, I believe Armanino is entering an exciting new chapter. We have a profitable core business, a strong balance sheet, and a leadership position in food service pesto. We are now leveraging those strengths to win new customers, enter new markets, and expand our role in the specialty sauce category. Our ambition is clear, to build a larger, more diversified company while preserving the profitability and financial discipline that distinguish our business. We have the strategy, the commercial momentum, and the financial strength to pursue that ambition. Now our focus is on executing, converting opportunities into revenue, executing on Mountain House and creating lasting shareholder value. To our employees, thank you for making this progress possible. And to our customers and shareholders, thank you for your continued partnership and confidence. Operator, we are ready to take questions.

Thank you. We will now begin the question and answer session. If you have a question, please press the star followed by the one on your touchtone phone. If you would like to withdraw your question, please press the star followed by the two. If you are using speaker equipment, please lift the handset before making your selection. We will pause for a moment to assemble the queue. Our first question comes from George Kelly with the Roth Capital Partners. Please go ahead.

Hey, everyone. Thanks for taking the questions and congrats on another strong quarter. So first question from me. There's a line in your press release about inflation and expecting more of an impact in Q4. It really hasn't had much of an impact, at least through your financials thus far. So, I'm curious if you could just give more context around your expectations with respect to gross margin and OPEX, just any kind of added data on what you're expecting in Q4.

Hey, George. It's Andrew. Thanks for the question.

So, I would not call it any particular impact that's expected in Q4. I mean, this is something that we are watching. Obviously, we're seeing it in the market. We are seeing it in our transportation costs due to fuel prices. We have done what we can to mitigate it through entering into longer-term contracts with some of our major suppliers around commodities, but those are largely one-year contracts that do reset. So, you know, we do have some exposure when those contracts reset. So, you know, I would not necessarily expect or, you know, it's hard to predict certain particular impact, but it is, you know, given the environment, something that we're seeing and watching carefully and, you know, we are seeing it to some extent.

Okay. Okay. And do you expect to take pricing to mitigate some of the impact?

Yeah. We did actually implement a price increase at the beginning of Q4. This is essentially our annual price increase. We took it a little bit earlier this year than we did last year just because it's operationally easier to do it on that timeframe. But that was designed to offset some of those costs as we expect them to be continuing to hit us over the next year.

Okay. and then second topic I wanted to cover is around your secondary sauces. Really nice progress and I guess I'm just trying to understand what the sort of medium term opportunity is there and where I'm a little unclear is your core accounts that have utilized your pesto sauce for years. How are you educating them about your secondary sauces. And I know your broker network is a big part of your distribution. So just trying to understand like the attach rate of your existing customer base in the secondary sauces, what does that look like? And how are you out in the field trying to continue growing that part of your business?

Hi, George. Thanks for the question. We are very focused on secondary sauces, as you can tell from the momentum from last quarter to this quarter. So our focus is, one, with all existing customers, largely who are basil pesto, reintroducing Armanino and our full capability of sauces that we currently make, as well as the potential of customization that we can do. Just from talking with existing customers, we are getting quite a bit of pickup on secondary sauces that we already produce, largely with our core U.S. food service business. And then also with secondary sauces, as I mentioned, is national accounts. And this is really where we're working on customization and Deborah Jean Armanino-Leblanc, Deborah Jean Armanino-Leblanc, and our customers are really responding to how that is now spreading across the rest of our portfolio. So we continue to focus on secondary sauces, leaning into that space and our intent is to continue to broaden distribution with existing and new customers.

Okay. Okay. That's helpful. And then last quick one for me. The grocery business that you talked about, I think you called it, It's the sort of food service at grocery through that channel. You announced Walmart and Kroger last quarter. Just curious if you could update us on the performance through those retailers and are you expecting to win additional new grocery banners anytime soon or just what the progress looks like there? Thank you.

Yeah. Sure. So within this space, we're really going after the prepared food slash deli sections. It is a growing and emerging perimeter category within retail. And so we want to be there and we want to play in that space. So as I mentioned last quarter, we had initial products through private label that had launched and Kroger was a pizza item and Walmart was a sandwich item. And like I said, we are very pleased with the initial performance in both of these customers. and we are already in talks and development on additional sauces that could be utilized in more SKUs. So, I have nothing to report yet. There is nothing that has been accepted, but I will tell you that we are working with our suppliers on the potential of additional SKUs and I hope to be able to report on that soon.

Excellent.

Thank you. Thanks, George.

Our next question comes from Ryan Myers with Lake Street Capital Markets. Please go ahead with your question.

Hey guys, thank you for taking my questions. Congrats on the great quarter and continued progress. So first question for me, just thinking about Mountain House and that project and transition there, I'm wondering if you can maybe just kind of give us an update on what you feel like the revenue capacity is for that new facility and what you feel like you guys can do out of that over the near term and the long term.

I mean what we've said I think we said last quarter you know and what we have evaluated essentially and based on analysis is that the you know the ultimate capacity of that facility is about 3x what we will be doing when we move in you know that would require some additional equipment we are going to be sort of, you know, smart about how we build out the facility and particularly, you know, building all that capacity. We'll build it as the demand materializes and as we see it in front of us. But, you know, space-wise, capacity-wise, it's about 3x what it will be as of day one.

Okay, got it. And then just thinking about the product offering that's now at Noodles & Company, can you maybe just kind of walk us through that? You know, is that a permanent menu item? Is it a limited time only? And then, you know, do you think is this potentially the first of several, you know, product opportunities within this customer? Just sort of an update on the QSR business.

Yeah, so this is a really exciting product. I encourage everyone to go out to Noodles and try it, the Go-Gujang Carbonara Ramen. The ramen is a brand new platform that Noodles has brought in. They actually have three different offerings. of which one is ours. So this was originally brought on as an LTO. And what I can say is the test market was so successful that Noodles is going to be keeping it longer than a traditional LTO, which is generally eight to 12 weeks. So they haven't put an end date on it at this point, but they do intend to keep it longer then what I would say is normal. So noodles will continue to monitor the performance. It is not a determined permanent item at this point, but it is a, I'll call it an extended LTO. I don't know exactly the full timeframe, but we are encouraged that out of the gate, they made the decision to extend it beyond a normal timeframe. So I think that is a really good signal. of it, and I will tell you that we are in development already for additional SKUs. You know, it doesn't mean that they're going to be accepted, but we are working on development for additional SKUs in the pipeline.

Got it. That's great to hear.

Thanks for taking my questions.

Thanks, Ryan. And this does conclude our question and answer session. I will now turn the call back to President and Chief Executive Officer Deanna Jurgens for her closing remarks. Deanna?

Thank you to everyone for joining us today. We are encouraged by the progress we are making and we are very confident in our strategy. Our focus remains on executing our priorities, building our commercial momentum, and delivering sustainable earnings and long-term shareholder value. We appreciate your continued support and look forward to speaking with you again next quarter. Thank you.