Armlogi Reports Revenue Growth for the Nine Months Ended March 31, 2024
Armlogi Holding Corp. (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider, reported a substantial revenue increase for the nine months ending March 31, 2024. Total revenue was $121.7 million, up 39.9% from $87.0 million the previous year. The Transportation Services segment saw a 36.6% revenue growth to $84.7 million, while the Warehousing Services segment's revenue surged 49.2% to $36.6 million. However, net income for the same period decreased to $7.2 million from $9.0 million.
Key operational highlights include the initial public offering in May, generating $8 million in gross proceeds, a new 733,200-square-foot warehouse lease near the Port of Savannah, and new partnerships with Temu marketplace and Massimo Group. Armlogi's CEO, Aidy Chou, emphasized the company's strong growth trajectory supported by advanced technology and strategic expansions. A conference call to discuss these results will take place on June 13, 2024.
- Total revenue for nine months ended March 31, 2024, increased by 39.9% to $121.7 million.
- Transportation Services segment revenue grew by 36.6% to $84.7 million.
- Warehousing Services segment revenue increased by 49.2% to $36.6 million.
- Closed an initial public offering in May, raising $8 million in gross proceeds.
- Leased a new 733,200-square-foot warehouse near the Port of Savannah.
- Became an authorized warehouse provider for Temu marketplace sellers.
- Announced a strategic partnership with Massimo Group for vehicle assembly and distribution services.
- Net income for the nine months ended March 31, 2024, decreased to $7.2 million from $9.0 million.
- Other Services segment revenue remained stagnant at $0.4 million.
- Revenue from Other Services segment for the three months ending March 31, 2024, decreased to $0.04 million from $0.08 million.
Insights
Armlogi's recent financial results demonstrate a
From a financial perspective, it's notable that while revenue rose significantly, net income actually decreased from $2.2 million to $0.7 million for the three-month period and from $9.0 million to $7.2 million for the nine-month period. This indicates potential margin compression or increased operational costs. Investors should consider these figures in the context of the company's growth strategy and planned expansions.
The initial public offering (IPO) in May, which generated $8 million in gross proceeds, is also significant. While this infusion of capital aids expansion plans, it also introduces new investors and potential dilution. The expanded warehouse in Georgia and the partnership with Temu are strategic steps to strengthen Armlogi's market position, but the company must ensure that these expansions translate to improved profitability.
In the short term, investors might be concerned about the declining profit margins despite revenue growth. In the long term, however, if the company's strategic expansions succeed, there could be substantial upside potential.
The logistics and warehousing industry is highly competitive and Armlogi's recent moves to expand its warehouse capacities and form strategic partnerships indicate an aggressive growth strategy. The company’s collaboration with Temu, a major e-commerce platform, is particularly noteworthy. This partnership can potentially boost Armlogi's visibility and client base, especially within the booming e-commerce sector.
The logistics sector is expected to grow significantly, driven by increased online shopping and global trade. Armlogi's strategic placement near the Port of Savannah, along with advanced warehousing capabilities, positions it well to capitalize on this trend. However, the success of these initiatives will depend on effective execution and integration of new clients and services.
For retail investors, the key takeaway is that while Armlogi is setting up a robust infrastructure for future growth, the immediate financial metrics suggest a transition period with increased expenses impacting net income. This makes the stock a higher-risk, higher-reward investment in the near term.
Armlogi's operational highlights reflect its emphasis on enhancing logistics capabilities. The new 733,200-square-foot warehouse near the Port of Savannah will significantly boost its capacity for efficient order fulfillment and inventory management. The proximity to a major port allows for faster and cost-effective shipping operations, which can be a key differentiator in the logistics industry.
Additionally, becoming an authorized warehouse provider for Temu sellers and the strategic partnership with Massimo Group underline Armlogi's commitment to expanding its service offerings and clientele. These partnerships highlight an adaptive strategy to market demands, such as the rise in e-commerce and automotive logistics needs.
For stakeholders, the potential benefits include improved service efficiency and customer satisfaction, which could lead to increased business and revenue. However, the integration of these new services and partnerships will require meticulous planning and execution to avoid operational disruptions.
Conference Call and Webcast on Thursday, June 13 at 1:30 PM Pacific Time
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 , up28% from$30.1 million in the same period in 2023.
- Our Transportation Services segment reported revenue of
$25.0 million , an increase of18.2% 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 , a50.5% 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 Transportation Services segment reported revenue of
- 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 , up39.9% from$87.0 million in the same period in 2023.
- Our Transportation Services segment reported revenue of
$84.7 million , an increase of36.6% 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 , a49.2% 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 Transportation Services segment reported revenue of
- 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
“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 | 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 | ||||||
FAQ
What was Armlogi's revenue for the nine months ended March 31, 2024?
How much did the Transportation Services segment revenue grow for BTOC?
What was the revenue increase for Armlogi's Warehousing Services segment?
What was Armlogi's net income for the nine months ended March 31, 2024?
What were the gross proceeds from Armlogi's initial public offering in May?
What strategic partnerships did Armlogi announce in June 2024?
What is the significance of Armlogi's new warehouse near the Port of Savannah?
When will Armlogi's earnings conference call take place?
