EX-99.1 2 ea021555701ex99-1_armlogi.htm PRESS RELEASE DATED SEPTEMBER 26, 2024

Exhibit 99.1

 

 

Armlogi Reports 24% Revenue Growth for Fiscal Year 2024

 

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.

 

oOur 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.

 

oOur 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.

 

oRevenue 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.

 

oFreight 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.

 

 

 

 

oRental 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.

 

oSalary 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.

 

oTemporary 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.

 

oWarehouse 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.

 

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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 ***

 

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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  

 

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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  

 

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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 

 

 

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