• Armlogi Reports Revenue Growth for the Nine Months Ended March 31, 2024

    Source: Nasdaq GlobeNewswire / 13 Jun 2024 08:00:57   America/New_York

    WALNUT, Calif., June 13, 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 three-month and nine-month periods ended March 31, 2024.

    Financial Results for the Three Months Ending March 31, 2024:

    • 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 in California and New 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 net income was $0.7 million and $2.2 million for the three months ended March 31, 2024 and 2023, respectively.

    Financial Results for the Nine Months Ending March 31, 2024:

    • 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 in California and New 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 net income was $7.2 million and $9.0 million for the nine months ended March 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 in Georgia. 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

    Aidy Chou, Chairman and Chief Executive Officer of Armlogi, commented, “At Armlogi, we offer a one-stop shop for warehousing and logistics services supported by advanced technology and specialized equipment which help us ensure that every package delivered exceeds the expectations of our customers and partners worldwide.”

    “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 $2 trillion global cross-border e-commerce industry.”

    “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 1:30 PM Pacific Time (4:30 PM Eastern Time) on Thursday, June 13, 2024, to discuss the Company’s financial results and provide an overview of the Company’s operations. Aidy Chou, Chairman and Chief Executive Officer, and Ian Zhou, Chief Financial Officer, will lead the conference call with other company executives available to answer questions.

    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 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.

    Contact Information:

    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.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    AS OF MARCH 31, 2024 (UNAUDITED) AND JUNE 30, 2023
    (US$, except share data, or otherwise noted)
     
      March 31,
    2024
      June 30,
    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, US$0.00001 par value, 100,000,000 shares authorized, 40,000,000 issued and outstanding as of March 31, 2024 and June 30, 2023, respectively  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 


    ARMLOGI HOLDING CORP.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
    FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2024 AND 2023 (UNAUDITED)
    (US$, except share data, or otherwise noted)
     
      Three Months
    Ended
    March 31,
    2024
      Three Months
    Ended
    March 31,
    2023
      Nine Months
    Ended
    March 31,
    2024
      Nine Months
    Ended
    March 31,
    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 


    ARMLOGI HOLDING CORP.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    FOR THE NINE MONTHS ENDED MARCH 31, 2024 AND 2023 (UNAUDITED)
    (US$, except share data, or otherwise noted)
     
      For The
    Nine Months
    Ended
    March 31,
    2024
      For The
    Nine Months
    Ended
    March 31,
    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 

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