Armlogi Reports Financial Results for the First Quarter Ended September 30, 2024
WALNUT, Calif., Nov. 15, 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 reported financial results for the first quarter ended September 30, 2024.
Financial Highlights:
-- Total revenue increased by $1.2 million, or 3.0%, to $42.5 million during
the three months ended September 30, 2024, compared to $41.2 million for
the same period in 2023.
-- Our transportation services segment reported revenue of $28.5
million, a decrease of 4.2% from $29.7 million for the same period
in 2023. The decrease was driven by decreases in customer order
volume.
-- Our warehousing services segment generated $14.0 million, a 23.8%
increase from $11.3 million for the same period in 2023. This
growth was driven by the additional warehouses acquired in the
last fiscal quarter. This segment comprises inventory management
and storage offerings.
-- Revenue from other services decreased by $0.2 million, or 92%.
This segment is primarily comprised of customs brokerage services.
-- Costs of sales were $46.1 million during the three months ended September
30, 2024, an increase of $10.1 million or 28.0%, compared with $36.0
million for the same period in 2023. Our costs of sales mainly
represented the costs incurred for the use of third-party direct freight
service carriers, such as FedEx and UPS, warehouse rental expenses, costs
of labor, and trucking expenses. . The increase was driven by two main
factors. First, there was a rise in freight expenses due to higher UPS
shipping charges. Second, lease expenses, employee salary and benefits,
and temporary labor costs increased as we expanded our warehouse and
operations team to support growth.
-- Gross profit (loss) margin decreased from 12.7% for the for the three
months ended September 30, 2023 to (8.5)% for the same period in 2024,
primarily due to the increase of surcharge by UPSand the decreases in
customer order volume.
-- General and administrative expenses increased by $1.8 million to $3.7
million, a 92% increase from the $1.9 million reported for the same
period in 2023. This rise in expenses was attributed to several key
factors. Office expenses increased by $0.6 million or 106%, primarily due
to a $0.5 million increase in insurance costs, which was associated with
the rapid expansion of our warehouse operations and growth in our
transportation services. Additionally, repairs and maintenance expenses
increased by $0.2 million or 109%, linked directly to the expansion of
our transportation services. Moreover, professional fees increased by
$0.3 million or 485%, largely driven by an increase in audit fees.
-- Net income (loss) for the three months ended September 30, 2024 was
$(4.6) million, compared with the net income of $2.8 million for the same
period in 2023, representing a decrease of $7.4 million.
Operational Highlights
-- In June, we became an authorized warehouse provider for sellers on the
Temu marketplace. Armlogi will offer Temu sellers streamlined access to
its warehousing facilities and tailored logistics services to provide
fast order fulfillment and improved inventory management through this
collaboration. This collaboration with a major e-commerce platform is
expected to expand our capabilities to serve more e-commerce sellers.
-- In June, we announced a strategic partnership with Massimo Group (Nasdaq:
MAMO) to provide streamlined warehousing and logistics services for the
assembly and distribution of vehicles, aiming to meet the rising market
demand across key U.S. regions. This collaboration has resulted in the
integration of Massimo's quality control standards into Armlogi's
distribution processes, improving service reliability. Armlogi now
manages its deliveries independently across regions. Then in July,
Armlogi announced the leasing of a new 60,000 sq. ft. warehouse in City
of Industry, CA, to support its expanding trucking operations and its
partnership with Massimo Group. The facility will provide additional
storage and streamline distribution processes.
-- In July, Armlogi announced the expansion of its trucking department,
doubling its capacity and extending services to key clients, including
Amazon. The Company has enhanced its logistics services and increased its
customer base, particularly in the e-sports logistics industry.
Investments in staffing, training, and equipment aim to meet rising
demand and improve service quality.
-- In August, Armlogi announced its participation in the Low Carbon Fuel
Standard (LCFS) program, incorporating electric forklifts across its
California warehouse operations to reduce greenhouse gas emissions. This
initiative aligns with the company's sustainability goals and qualifies
Armlogi for monthly energy rebates.
-- In August, Armlogi's warehouse at the Port of Savannah became fully
operational and has quickly become the busiest among the Company's
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, "Our first quarter posed several challenges, primarily driven by increased costs and fluctuating customer demand. Despite these hurdles, we continue to invest in strategic growth initiatives and infrastructure enhancements that position us well for the long term. Our recent partnerships and expansion efforts are already showing promising results in streamlining operations and broadening our service capabilities. We are committed to navigating the current challenges, focusing on operational excellence and strategic growth."
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 ten warehouses covering over three 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
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ARMLOGI HOLDING CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2024 AND JUNE 30, 2024
(US$, except share data, or otherwise noted)
September 30, June 30,
2024 2024
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US$ US$
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Unaudited Audited
Assets
Current assets
Cash 2,924,176 7,888,711
Accounts receivable and other
receivable, net 25,177,485 25,465,044
Other current assets 1,875,381 1,624,611
Prepaid expenses 812,691 1,129,435
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