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.
    • 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