Armlogi Reports 24% Revenue Growth for Fiscal Year 2024
GlobeNewswire Inc.
September 26, 2024 1:06PM GMT
Conference Call and Webcast on September 26th at 1:30 PM Pacific Time
WALNUT, Calif., Sept. 26, 2024 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today provided a business update, and reported financial results for the fiscal year ended June 30, 2024.
Fiscal Year 2024 Financial Results:
- Total revenue increased by $31.9 million, or 23.6%, to $167.0 million during the fiscal year ended June 30, 2024, compared to $135.0 million for the fiscal year ended June 30, 2023.
- Our transportation services segment reported revenue of $115.3 million, an increase of 18.8% from $97.0 million in fiscal year 2023. The increase was driven by the rapid expansion of our business in 2023, as we expanded our warehouse operational capacities in California and New Jersey. This segment comprises reselling third-party carrier services to our customers.
- Our warehousing services segment generated $51.5 million, a 38.1% increase from $37.3 million in fiscal year 2023. This growth was driven by the growth in our transportation services. This segment comprises inventory management and storage offerings.
- Revenue from other services decreased by $0.5 million, or 77.4%. This segment is primarily comprised of customs brokerage services.
- Costs of sales were $148.9 million in fiscal year 2024, an increase of 36.2%, or $39.6 million, compared with $109.3 million in fiscal year 2023. The increase in costs was primarily driven by growth in transportation and warehousing services, leading to higher expenses across warehouse operations, particularly rental, labor, and operational expenses.
- Gross profit margin decreased from 19.1% in fiscal year 2023 to 10.8% in 2024. Although the profit margins of our transportation services (e.g., FedEx, ocean freight, and truck deliveries) for the fiscal year ended June 30, 2024, remained stable or slightly higher compared to the previous fiscal year, the profit margins for our warehousing services experienced a significant decrease during the same period.
- Freight expenses rose by 17.8%, from $76.0 million in fiscal year 2023 to $89.5 million in fiscal year 2024. This increase correlates with the growth in transportation services, as higher activity levels and shipping volume boosted freight-related costs.
- Rental expenses were $30.4 million in fiscal year 2024, compared to $14.8 million in 2023, an increase of 105%. This increase is largely driven by the Company’s expansion into its Fontana, California warehouse, as well as increased warehouse operating lease costs.
- Salary and benefits saw a 68% increase in fiscal year 2024, from $4.5 million to $7.6 million. This increase was due to the expansion of operations, particularly in warehouse services, necessitating more employees and higher compensation.
- Temporary labor expenses increased by 51%, from $8.4 million in 2023 to $12.7 million in fiscal year 2024. The increase reflected the Company's need for additional temporary labor to handle increased demand, especially in warehouse operations.
- Warehouse expenses grew by 82%, from $3.1 million in 2023 to $5.7 million in fiscal year 2024. The increase is associated with the expansion of the Company's warehousing facilities, including the costs tied to operating its new Fontana warehouse.
- General and administrative expenses increased by $2.2 million, from $7.8 million for the fiscal year ended June 30, 2023 to $10.0 million for the fiscal year ended June 30, 2024, representing an increase of 28%. The increase was due to increased administrative activities primarily related to office supplies, and repairs and maintenance, to accommodate our business expansion.
- Net income for the fiscal year ended June 30, 2024 was $7.4 million, compared with the net income of $13.9 million for the fiscal year ended June 30, 2023, representing a decrease by $6.5 million.
Operational Highlights
- In May, we closed our initial public offering of 1,600,000 shares of common stock at a public offering price of $5.00 per share to the public for a total of $8,000,000 of gross proceeds to the Company before deducting underwriting discounts and offering expenses.
- In May, we signed a lease for a new 733,200-square-foot warehouse located near the Port of Savannah in Georgia. In August, the warehouse at the Port of Savannah, known as “SAV1,” became fully operational and has quickly become the busiest among the Company’s nine warehouses. Since June 2024, the facility has handled over 800 container shipments and maintains over 70% occupancy.
Management Commentary
Aidy Chou, Chairman and Chief Executive Officer of Armlogi, commented, “As we reflect on fiscal year 2024, we are proud to report strong revenue growth of nearly 24%, a testament to our team’s dedication and the success of our strategic initiatives. Our expansion in both transportation and warehousing services has enabled us to meet increasing customer demands while laying a solid foundation for future growth. As we continue to enhance our operational capacities, such as the opening of our SAV1 warehouse and the expansion of our trucking department, we remain focused on delivering exceptional service and value to our customers. We are also committed to sustainability, as demonstrated by our participation in the Low Carbon Fuel Standard program, which aligns with our long-term goal of reducing our environmental footprint. Looking ahead, we are confident in our ability to navigate the evolving logistics landscape and continue driving value for our shareholders and partners.”
Conference Call & Audio Webcast
Armlogi’s management team will hold an earnings conference call at 1:30 P.M. Pacific Time (4:30 P.M. Eastern Time) on Thursday, September 26th to discuss the Company’s financial results and provide an overview of the Company’s operations. Armlogi’s management team will lead the conference call and answer investor questions.
To access the call by phone, please dial 1-800-445-7795 (international callers, please dial 1-785-424-1699) approximately 10 minutes prior to the start of the call. Please use the conference ID: ARMLOGI. **NOTE: THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY
A live audio webcast of the conference call will be available online at https://viavid.webcasts.com/starthere.jsp?ei=1690358&tp_key=54cbaa4fb7.
About Armlogi Holding Corp.
Armlogi Holding Corp., based in Walnut, CA, is a fast-growing U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions relating to warehouse management and order fulfillment. The Company caters to cross-border e-commerce merchants looking to establish overseas warehouses in the U.S. market. With eleven warehouses covering over two million square feet, the Company offers comprehensive one-stop warehousing and logistics services. The Company’s warehouses are equipped with facilities and technology for handling and storing large and bulky items. For more information, please visit www.armlogi.com.
Forward-Looking Statements
This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “intends,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us.
Company Contact:
info@armlogi.com
Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com
*** tables follow ***
| ARMLOGI HOLDING CORP. CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2024 AND JUNE 30, 2023 (US$, except share data, or otherwise noted) | ||||||||
| June 30, 2024 | June 30, 2023 | |||||||
| US$ | US$ | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | 7,888,711 | 6,558,099 | ||||||
| Accounts receivable and other receivable, net | 25,465,044 | 17,396,421 | ||||||
| Other current assets | 1,624,611 | 1,642,346 | ||||||
| Deferred share issuance costs | - | 1,304,712 | ||||||
| Prepaid expenses | 1,129,435 | 796,904 | ||||||
| Loan receivables | 1,877,131 | 2,449,956 | ||||||
| Total current assets | 37,984,932 | 30,148,438 | ||||||
| Non-current assets | ||||||||
| Restricted cash – non-current | 2,061,673 | — | ||||||
| Long-term loan receivables | 2,908,636 | — | ||||||
| Due from related parties | — | 511,353 | ||||||
| Property and equipment, net | 11,010,407 | 7,629,117 | ||||||
| Intangible assets, net | 92,708 | 128,027 | ||||||
| Right-of-use assets – operating leases | 111,955,448 | 49,659,047 | ||||||
| Right-of-use assets – finance leases | 309,496 | 478,984 | ||||||
| Other non-current assets | 711,556 | — | ||||||
| Total assets | 167,034,856 | 88,554,966 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Liabilities: | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | 7,502,339 | 8,470,166 | ||||||
| Contract liabilities | 276,463 | 424,182 | ||||||
| Income taxes payable | 57,589 | 2,654,695 | ||||||
| Due to related parties | 350,209 | 351,909 | ||||||
| Accrued payroll liabilities | 405,250 | 263,356 | ||||||
| Operating lease liabilities – current | 24,216,446 | 12,111,309 | ||||||
| Finance lease liabilities – current | 155,625 | 198,448 | ||||||
| Total current liabilities | 32,963,921 | 24,474,065 | ||||||
| Non-current liabilities | ||||||||
| Operating lease liabilities – non-current | 93,126,092 | 37,741,370 | ||||||
| Finance lease liabilities – non-current | 169,683 | 290,795 | ||||||
| Deferred income tax liabilities | 1,536,455 | 735,122 | ||||||
| Total liabilities | 127,796,151 | 63,241,352 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity | ||||||||
| Common stock, US$0.00001 par value, 100,000,000 shares authorized, 41,634,000 and 40,000,000 issued and outstanding as of June 30, 2024 and June 30, 2023, respectively | 416 | 400 | ||||||
| Additional paid-in capital | 15,468,864 | 8,985,007 | ||||||
| Retained earnings | 23,769,425 | 16,328,207 | ||||||
| Total stockholders’ equity | 39,238,705 | 25,313,614 | ||||||
| Total liabilities and stockholders’ equity | 167,034,856 | 88,554,966 | ||||||
| ARMLOGI HOLDING CORP. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEAR ENDED JUNE 30, 2024 AND 2023 (US$, except share data, or otherwise noted) | ||||||||
| Year Ended June 30, 2024 | Year Ended June 30, 2023 | |||||||
| US$ | US$ | |||||||
| Revenue | 166,977,034 | 135,044,436 | ||||||
| Costs of sales | 148,894,227 | 109,310,993 | ||||||
| Gross profit | 18,082,807 | 25,733,443 | ||||||
| Operating costs and expenses: | ||||||||
| General and administrative | 9,967,792 | 7,799,116 | ||||||
| Total operating costs and expenses | 9,967,792 | 7,799,116 | ||||||
| Income from operations | 8,115,015 | 17,934,327 | ||||||
| Other (income) expenses: | ||||||||
| Other income, net | (2,320,257 | ) | (1,408,634 | ) | ||||
| Finance costs | 47,649 | 60,419 | ||||||
| Total other (income) expenses | (2,272,608 | ) | (1,348,215 | ) | ||||
| Income before provision for income taxes | 10,387,623 | 19,282,542 | ||||||
| Current income tax expense | 2,145,072 | 4,980,481 | ||||||
| Deferred income tax expense | 801,333 | 380,523 | ||||||
| Total income tax expenses | 2,946,405 | 5,361,004 | ||||||
| Net income | 7,441,218 | 13,921,538 | ||||||
| Total comprehensive income | 7,441,218 | 13,921,538 | ||||||
| Basic & diluted net earnings per share | 0.19 | 0.35 | ||||||
| Weighted average number of shares of common stock-basic | 40,205,836 | 40,000,000 | ||||||
| Weighted average number of shares of common stock-diluted | 40,216,109 | 40,000,000 | ||||||
| ARMLOGI HOLDING CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2024 AND 2023 (US$, except share data, or otherwise noted) | ||||||||
| For The Year Ended June 30, 2024 | For The Year Ended June 30, 2023 | |||||||
| US$ | US$ | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net income | 7,441,218 | 13,921,538 | ||||||
| Adjustments for items not affecting cash: | ||||||||
| Net loss from disposal of fixed assets | — | 18,828 | ||||||
| Depreciation of property and equipment and right-of-use financial assets | 1,996,720 | 1,284,939 | ||||||
| Amortization | 35,317 | 30,607 | ||||||
| Non-cash operating leases expense | 5,193,458 | 421,705 | ||||||
| Current estimated credit loss | 94,694 | 579,290 | ||||||
| Accretion of finance lease liabilities | 47,649 | 60,419 | ||||||
| Deferred income taxes | 801,333 | 380,522 | ||||||
| Interest income | (109,427 | ) | — | |||||
| Changes in operating assets and liabilities | ||||||||
| Accounts receivable and other receivables | (8,157,462 | ) | (8,454,740 | ) | ||||
| Other current assets | 11,881 | (1,376,556 | ) | |||||
| Prepaid expenses | (332,531 | ) | (397,395 | ) | ||||
| Other non-current assets | (711,556 | ) | — | |||||
| Accounts payable & accrued liabilities | (667,825 | ) | 2,492,526 | |||||
| Income tax payable | (2,597,106 | ) | 2,283,425 | |||||
| Contract liabilities | (147,719 | ) | 424,182 | |||||
| Accrued payroll liabilities | 141,894 | 134,117 | ||||||
| Net cash provided from operating activities | 3,040,538 | 11,803,407 | ||||||
| Cash Flows from Investing Activities: | ||||||||
| Purchase of property and equipment | (5,208,522 | ) | (1,812,177 | ) | ||||
| Purchase of intangible assets | — | (53,940 | ) | |||||
| Net loan disbursement amounts after repayments received. | (2,229,083 | ) | (2,449,956 | ) | ||||
| Net cash used in investing activities | (7,437,605 | ) | (4,316,073 | ) | ||||
| Cash Flows from Financing Activities: | ||||||||
| Net proceeds received from (repaid to) related parties | 1,000 | (2,503,233 | ) | |||||
| Proceeds (lend to) from related parties | 511,353 | (511,353 | ) | |||||
| Repayments of finance lease liabilities | (211,585 | ) | (208,497 | ) | ||||
| Deferred issuance costs for initial public offering | (951,617 | ) | (427,712 | ) | ||||
| Proceeds from IPO and share issuance, net | 7,471,180 | — | ||||||
| Capital contributions from stockholders | 969,021 | 472,800 | ||||||
| Net cash provided by (used in) financing activities | 7,789,352 | (3,177,995 | ) | |||||
| Net increase in cash and restricted cash | 3,392,285 | 4,309,339 | ||||||
| Cash, beginning of year | 6,558,099 | 2,248,760 | ||||||
| Cash and restricted cash, end of year | 9,950,384 | 6,558,099 | ||||||
| The following table provides a reconciliation of cash and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statements of Cash Flows: | ||||||||
| Cash | 7,888,711 | 6,558,099 | ||||||
| Restricted cash – non-current | 2,061,673 | - | ||||||
| Total cash and restricted cash shown in the Consolidated Balance Sheet | 9,950,384 | 6,558,099 | ||||||
| Supplemental Disclosure of Cash Flows Information: | ||||||||
| Income taxes paid | (4,742,178 | ) | (2,697,056 | ) | ||||
| Non-cash Transactions: | ||||||||
| IPO expenses paid by shareholders | 300,000 | 350,000 | ||||||
| Right-of-use assets acquired in exchange for operating lease liabilities | 81,927,507 | 15,303,391 | ||||||
| Right-of-use assets acquired in exchange for finance lease liabilities | — | 109,961 | ||||||
