Financial Results for the Three Months Ending
- Total revenue for the three months ended
March 31, 2024 , was$38.4 million , up 28% from$30.1 million in the same period in 2023.- Our
Transportation Services segment reported revenue of$25.0 million , an increase of 18.2% from$21.2 million in the same period in 2023. The increase was driven by the rapid expansion of our business in 2023, as we expanded our warehouse operational capacities inCalifornia andNew Jersey . This segment comprises reselling third-party carrier services to our customers. - Our Warehousing Services segment generated
$13.4 million , a 50.5% increase from$8.9 million over the same period in 2023. This growth was driven by the growth in our transportation services. This segment comprises inventory management and storage offerings. - Our Other Services segment generated revenue of
$0.04 million compared to$0.08 million in the same period in 2023. This segment is primarily comprised of customs brokerage services.
- Our
- Our net income was
$0.7 million and$2.2 million for the three months endedMarch 31, 2024 and 2023, respectively.
Financial Results for the Nine Months Ending
- Total revenue for the nine months ended
March 31, 2024 , were$121.7 million , up 39.9% from$87.0 million in the same period in 2023.- Our
Transportation Services segment reported revenue of$84.7 million , an increase of 36.6% from$62.0 million in the same period in 2023. The increase was driven by the rapid expansion of our business in 2023, as we expanded our warehouse operational capacities inCalifornia andNew Jersey . - Our Warehousing Services segment generated
$36.6 million , a 49.2% increase from$24.5 million over the same period in 2023. This increase was driven by the significant growth in our transportation services. - Our Other Services segment generated revenue of
$0.4 million , which was in line with those in the same period in 2023.
- Our
- Our net income was
$7.2 million and$9.0 million for the nine months endedMarch 31, 2024 and 2023, respectively.
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. Net proceeds from the offering will allow us to expand our warehouse network and develop warehousing and logistics services, international ocean freight services, and port trucking services.
- In May, we signed a lease for a new 733,200-square-foot warehouse located near the
Port of Savannah inGeorgia . We expect that this new warehouse will significantly enhance our capacity to serve our clients more efficiently and quickly.
- 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 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.
Management Commentary
“We are pleased with our revenue growth trajectory compared to a year ago, highlighted by our expanded warehouse operational capacities and the growth in our transportation services. Our quality warehousing and logistics services, coupled with our reasonable service and delivery fees and advanced warehouse and order management technology, pave the way for our continued business growth in the
“I extend my heartfelt gratitude to our team, partners, and shareholders for their steadfast support as we continue to grow and strengthen our position in the logistics industry.”
Conference Call & Audio Webcast
Armlogi’s management team will hold an earnings conference call at
To access the call by phone, please dial 1-800-579-2543 (international callers, please dial 1-785-424-1789) approximately 10 minutes before the start of the call. Refer to conference ID: ARMLOGI. **NOTE: THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY
A live audio conference call webcast will be available online at https://viavid.webcasts.com/starthere.jsp?ei=1675610&tp_key=7cdba4f6ed.
About
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.
Contact Information:
Company Contact:
info@armlogi.com
Investor Relations Contact:
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com
*** tables follow ***
CONDENSED CONSOLIDATED BALANCE SHEETS AS OF (US$, except share data, or otherwise noted) | ||||||||
2024 | 2023 | |||||||
US$ | US$ | |||||||
Unaudited | Audited | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash | 3,985,003 | 6,558,099 | ||||||
Restricted cash | 2,061,673 | — | ||||||
Accounts receivable and other receivable, net | 25,104,670 | 17,396,421 | ||||||
Other current assets | 2,019,166 | 1,642,346 | ||||||
Deferred share issuance costs | 1,942,943 | 1,304,712 | ||||||
Prepaid expenses | 1,222,050 | 796,904 | ||||||
Loan receivable | 4,135,179 | 2,449,956 | ||||||
Total current assets | 40,470,684 | 30,148,438 | ||||||
Non-current assets | ||||||||
Due from related parties | — | 511,353 | ||||||
Property and equipment, net | 10,254,072 | 7,629,117 | ||||||
Intangible assets, net | 101,538 | 128,027 | ||||||
Right-of-use assets – operating leases | 119,515,548 | 49,659,047 | ||||||
Right-of-use assets – finance leases | 348,229 | 478,984 | ||||||
Total assets | 170,690,071 | 88,554,966 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | 6,822,919 | 8,470,166 | ||||||
Income taxes payable | 4,562,098 | 2,654,695 | ||||||
Due to related parties | 350,209 | 351,909 | ||||||
Accrued payroll liabilities | 463,162 | 263,356 | ||||||
Operating lease liabilities – current | 23,890,833 | 12,111,309 | ||||||
Finance lease liabilities – current | 170,531 | 198,448 | ||||||
Customer deposits | 236,257 | 424,182 | ||||||
Total current liabilities | 36,496,009 | 24,474,065 | ||||||
Non-current liabilities | ||||||||
Operating lease liabilities – non-current | 99,268,652 | 37,741,370 | ||||||
Finance lease liabilities – non-current | 193,238 | 290,795 | ||||||
Deferred income tax liabilities | 1,470,581 | 735,122 | ||||||
Total liabilities | 137,428,480 | 63,241,352 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity | ||||||||
Common stock, | 400 | 400 | ||||||
Additional paid-in capital | 9,751,163 | 8,985,007 | ||||||
Retained earnings | 23,510,028 | 16,328,207 | ||||||
Total stockholders’ equity | 33,261,591 | 25,313,614 | ||||||
Total liabilities and stockholders’ equity | 170,690,071 | 88,554,966 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE AND NINE MONTHS ENDED (US$, except share data, or otherwise noted) | ||||||||||||||||
Three Months Ended 2024 | Three Months Ended 2023 | Nine Months Ended 2024 | Nine Months Ended 2023 | |||||||||||||
US$ | US$ | US$ | US$ | |||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
Revenue | 38,439,935 | 30,133,445 | 121,689,863 | 86,961,574 | ||||||||||||
Costs of sales | 35,115,736 | 23,855,350 | 105,461,383 | 67,959,387 | ||||||||||||
Gross profit | 3,324,199 | 6,278,095 | 16,228,480 | 19,002,187 | ||||||||||||
Operating costs and expenses: | ||||||||||||||||
General and administrative | 3,269,493 | 3,051,137 | 8,097,196 | 6,974,146 | ||||||||||||
Total operating costs and expenses | 3,269,493 | 3,051,137 | 8,097,196 | 6,974,146 | ||||||||||||
Income from operations | 54,706 | 3,226,958 | 8,131,284 | 12,028,041 | ||||||||||||
Other (income) expenses: | ||||||||||||||||
Other income | (914,419 | ) | (293,016 | ) | (1,902,813 | ) | (954,447 | ) | ||||||||
Finance costs | 11,041 | 15,650 | 37,779 | 45,885 | ||||||||||||
Total other (income) expenses | (903,378 | ) | (277,366 | ) | (1,865,034 | ) | (908,562 | ) | ||||||||
Income before provision for income taxes | 958,084 | 3,504,324 | 9,996,318 | 12,936,603 | ||||||||||||
Current income tax expense | 200,612 | 1,335,189 | 2,079,038 | 3,495,908 | ||||||||||||
Deferred income tax expense | 75,252 | (9,972 | ) | 735,459 | 480,002 | |||||||||||
Total income tax expenses | 275,864 | 1,325,217 | 2,814,497 | 3,975,910 | ||||||||||||
Net income | 682,220 | 2,179,107 | 7,181,821 | 8,960,693 | ||||||||||||
Total comprehensive income | 682,220 | 2,179,107 | 7,181,821 | 8,960,693 | ||||||||||||
Basic & diluted net earnings per share | 0.02 | 0.05 | 0.18 | 0.22 | ||||||||||||
Weighted average number of shares of common stock-basic and diluted | 40,000,000 | 40,000,000 | 40,000,000 | 40,000,000 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED (US$, except share data, or otherwise noted) | ||||||||
For The Nine Months Ended 2024 | For The Nine Months Ended 2023 | |||||||
US$ | US$ | |||||||
Unaudited | Unaudited | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | 7,181,821 | 8,960,693 | ||||||
Adjustments for items not affecting cash: | ||||||||
Net loss from disposal of fixed assets | 6,895 | — | ||||||
Depreciation of property and equipment and right-of-use financial assets | 1,444,441 | 918,112 | ||||||
Amortization | 26,488 | 22,088 | ||||||
Non-cash operating leases expense | 3,450,304 | 266,280 | ||||||
Current estimated credit loss | (22,827 | ) | — | |||||
Accretion of finance lease liabilities | 37,779 | 45,885 | ||||||
Deferred income taxes | 735,459 | 480,002 | ||||||
Interest income | (87,923 | ) | (5,609 | ) | ||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable and other receivables | (7,685,423 | ) | (2,553,582 | ) | ||||
Other current assets | (376,820 | ) | (1,092,348 | ) | ||||
Prepaid expenses | (425,146 | ) | (318,266 | ) | ||||
Accounts payable & accrued liabilities | (2,212,137 | ) | 571,336 | |||||
Customer deposits | (187,925 | ) | — | |||||
Income tax payable | 1,907,403 | 2,852,182 | ||||||
Accrued payroll liabilities | 199,806 | 326,673 | ||||||
Net cash provided from operating activities | 3,992,195 | 10,473,446 | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchase of property and equipment | (3,080,643 | ) | (1,789,248 | ) | ||||
Purchase of intangible assets | — | (51,464 | ) | |||||
Loan receivable | (1,600,000 | ) | (2,425,000 | ) | ||||
Net cash used in investing activities | (4,680,643 | ) | (4,265,712 | ) | ||||
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 | (512,314 | ) | |||||
Repayments of finance lease liabilities | (163,253 | ) | (153,561 | ) | ||||
Deferred issuance costs for initial public offering | (638,231 | ) | (205,000 | ) | ||||
Capital contributions from stockholders | 466,156 | 350,000 | ||||||
Net cash provided by (used in) financing activities | 177,025 | (3,024,108 | ) | |||||
Net increase in cash, cash equivalents and restricted cash | (511,423 | ) | 3,183,626 | |||||
Cash and cash equivalents, beginning of year | 6,558,099 | 2,248,760 | ||||||
Cash and restricted cash, end of nine months period | 6,046,676 | 5,432,386 | ||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||||||||
Income taxes paid | (171,635 | ) | (643,726 | ) | ||||
NON-CASH TRANSACTIONS: | ||||||||
Right-of-use assets acquired in exchange for operating lease liabilities | 81,927,507 | 6,900,346 | ||||||
IPO expenses paid by stockholders | 300,000 | 350,000 |
Source:
2024 GlobeNewswire, Inc., source