Armlogi Holding Corp. Announces Fiscal 2025 Second Quarter and Six-Month Results

   -- Expanded from 9 to 10 warehouses throughout the first half of fiscal year 
      2025 
 
   -- Total warehouse space increased from 2 million to over 3.5 million square 
      feet 
 
   -- Major presence in California, Georgia (Savannah), and Illinois (St. Louis 
      Metro Area) 

WALNUT, Calif., Feb. 14, 2025 (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 announced financial results for its fiscal 2025 second quarter and first half ended December 31, 2024. Today, the Company filed its Quarterly Report on Form 10-Q with the U.S. Securities and Exchange Commission.

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

   -- Total revenue increased by $9.1 million, or 21.8%, to $51.1 million 
      during the three months ended December 31, 2024, compared to $42.0 
      million for the same period in 2023. 
 
          -- Revenue from our transportation services increased by $6.2 million, 
             or 20.8%, to $36.1 million during the three months ended December 
             31, 2024, compared with $29.9 million during the three months 
             ended December 31, 2023, due to the addition of new warehouse 
             locations, which has enabled an increase in shipment volume 
             compared to the same period in 2023. This segment comprises 
             reselling third-party carrier services to our customers. 
 
          -- Revenue from our warehousing services increased by $3.1 million, 
             or 25.7%, to $15.0 million during the three months ended December 
             31, 2024, compared with $11.9 million during the three months 
             ended December 31, 2023, driven by the addition of new warehouses 
             acquired in the last fiscal quarter. This segment comprises 
             inventory management and storage offerings. 
 
          -- Revenue from other services decreased by $0.2 million, or 96%. 
             This segment is primarily comprised of customs brokerage services. 
 
   -- Costs of sales increased by $16.3 million, or 47.6%, to $50.7 million 
      during the three months ended December 31, 2024, compared with $34.3 
      million during the same period in 2023. The increase was driven by a rise 
      in freight expenses due to higher UPS shipping charges and increases in 
      lease expenses, employee salary and benefits, and temporary labor costs, 
      as we expanded our warehouse and operations team to support growth. 
   -- Our freight expenses, lease expenses (primarily warehouse operating lease 
      expenses), temporary labor expenses, warehouse expenses, and salary and 
      benefits increased by $8.3 million, $2.7 million, $2.9 million, $1.2 
      million, and $0.7 million, respectively, during the three months ended 
      December 31, 2024, compared to the same period in 2023. The increases in 
      lease expenses were due to the additional operating leases acquired in 
      the last and current fiscal quarter. The increases in freight expenses 
      were due to the increase in UPS expenses. The increases in temporary 
      labor expenses, warehouse expenses, and salary and benefits were due to 
      the expansion of the warehouse operations. 
   -- Our overall gross profit margin decreased from 18.3% for the three months 
      ended December 31, 2023, to 0.9% for the same period in 2024, primarily 
      due to the increase in the surcharge by UPS and the decreases in customer 
      order volume, as well as some of the recently leased warehouses that are 
      not fully utilized. 
   -- Our net loss for the three months ended December 31, 2024, was $1.7 
      million, compared with the net income of $3.7 million for the same period 
      in 2023, representing a decrease of $5.4 million. 

Financial Results for the Six Months Ending December 31, 2024:

   -- Total revenue increased by $10.4 million, or 12.5%, to $93.6 million 
      during the six months ended December 31, 2024, compared to $83.2 million 
      for the same period in 2023. 
 
          -- Revenue from our transportation services increased by $5.0 million, 
             or 8.3%, to $64.6 million during the six months ended December 31, 
             2024, compared to $59.6 million during the six months ended 
             December 31, 2023, due to the addition of new warehouse locations 
             which has enabled an increase in shipment volume compared to the 
             same period in 2023. 
 
          -- Revenue from our warehousing services increased by $5.7 million, 
             or 24.7%, to $29.0 million during the six months ended December 
             31, 2024, compared to $23.2 million during the six months ended 
             December 31, 2023, driven by the addition of new warehouses 
             acquired in the last fiscal quarter. 
 
          -- Revenue from other services decreased by $0.4 million, or 93.7%. 
             Other revenue mainly consisted of revenue from our customs 
             brokerage services. 
 
   -- Costs of sales increased by $26.4 million, or 37.5%, to $96.7 million 
      during the six months ended December 31, 2024, compared with $70.3 
      million in the same period in 2023. The increase was driven by a rise in 
      freight expenses due to higher UPS shipping charges and increases in 
      lease expenses, employee salary and benefits, and temporary labor costs 
      as we expanded our warehouse and operations team to support growth. 
   -- Our freight expenses, lease expenses (primarily warehouse operating lease 
      expenses), temporary labor expenses, warehouse expenses, and salary and 
      benefits increased by $11.5 million, $4.8 million, $5.7 million, $1.8 
      million and $1.6 million, respectively, during the three months ended 
      December 31, 2024, compared to the same period in 2023. The increases in 
      lease expenses were due to the additional operating leases acquired in 
      the last and current fiscal quarter. The increases in freight expenses 
      were due to the increase in UPS expenses. The increases in temporary 
      labor expenses, warehouse expenses, and salary and benefits were due to 
      the expansion of the warehouse operations. 
   -- Our overall gross profit margin decreased from 15.5% for the six months 
      ended December 31, 2023 to 3.3% for the same period in 2024, primarily 
      due to the increase in the surcharge by UPS and the decreases in customer 
      order volume, as well as some of the recently leased warehouses that are 
      not fully utilized. 
   -- Our net loss for the six months ended December 31, 2024, was $6.3 million, 
      compared with the net income of $6.5 million for the same period in 2023, 
      representing a decrease of $12.8 million. 

Liquidity

As of December 31, 2024, we had a balance of cash and restricted cash of $7.4 million, compared with a balance of $10.0 million as of June 30, 2024.

   -- Net cash used in operating activities was $9.2 million for the six months 
      ended December 31, 2024, compared to net cash provided by operating 
      activities of $3.5 million for the same period in 2023, representing a 
      $12.8 million decrease in the net cash inflow provided by operating 
      activities. 
   -- Net cash used in investing activities was $1.0 million for the six months 
      ended December 31, 2024, primarily attributable to $2.1 million cash used 
      for the purchase of property and equipment, $1.0 million cash used for 
      loans extended to others, and $2.0 million proceeds received from loan 
      repayments. 
   -- Net cash provided from financing activities was $7.7 million for the six 
      months ended December 31, 2024, which was primarily attributable to the 
      net effects of: (i) $0.4 million lent to related parties; (ii) $8.1 
      million of proceeds from advance payment from the Standby Equity Purchase 
      Agreement (described below). 

Operational Highlights

Warehouse Expansion & Facilities

   -- Expanded trucking department through increased staffing and equipment to 
      serve major clients, including Amazon 
   -- Leased a new 60,000 sq ft warehouse in City of Industry, CA, to support 
      trucking operations and partnership with Massimo Group. 
   -- Opened SAV1 warehouse at Port of Savannah, which quickly became the 
      Company's busiest facility with 70% occupancy 
   -- Leased 480,000 sq ft warehouse in Ontario, CA, with 46 dock doors and 
      advanced logistics technology 

Technology & Operations

   -- Incorporated a fleet of electric forklifts across California warehouses 
      as part of the Low Carbon Fuel Standard program 
   -- Implemented PortPro transportation management software for trucking 
      operations 
   -- Enhanced warehousing management system to optimize inventory management 
      and warehouse operations 
   -- Upgraded application programming interface to version 3.5 and integrated 
      with Temu platform, handling over 3,000 orders daily 

Financing Arrangements

   -- Entered into a $50 million Standby Equity Purchase Agreement $(SEPA)$ with 
      YA II PN, Ltd and up to $21 million in convertible promissory notes, 
      closing two $5 million tranches of pre-paid advances under the SEPA 

Management Commentary

(MORE TO FOLLOW) Dow Jones Newswires

February 14, 2025 06:15 ET (11:15 GMT)