Core Viewpoint - Armlogi Holding Corp. reported significant revenue growth in Q2 and the first half of fiscal 2025, but faced challenges with increased costs and net losses due to operational expansion and higher shipping charges. Financial Results for the Three Months Ending December 31, 2024 - Total revenue increased by $9.1 million, or 21.8%, to $51.1 million compared to $42.0 million in Q2 2023 [5] - Revenue from transportation services rose by $6.2 million, or 20.8%, to $36.1 million, driven by new warehouse locations [5] - Warehousing services revenue increased by $3.1 million, or 25.7%, to $15.0 million, attributed to new warehouse acquisitions [5] - Costs of sales increased by $16.3 million, or 47.6%, to $50.7 million, primarily due to higher freight and lease expenses [5] - Gross profit margin decreased from 18.3% to 0.9% due to increased UPS surcharges and underutilization of new facilities [5] - Net loss was $1.7 million compared to net income of $3.7 million in Q2 2023, a decrease of $5.4 million [5] Financial Results for the Six Months Ending December 31, 2024 - Total revenue increased by $10.4 million, or 12.5%, to $93.6 million compared to $83.2 million in the same period in 2023 [9] - Transportation services revenue rose by $5.0 million, or 8.3%, to $64.6 million, supported by new warehouse locations [9] - Warehousing services revenue increased by $5.7 million, or 24.7%, to $29.0 million, driven by new acquisitions [9] - Costs of sales increased by $26.4 million, or 37.5%, to $96.7 million, influenced by rising freight and lease expenses [9] - Gross profit margin decreased from 15.5% to 3.3% due to increased surcharges and lower customer order volumes [9] - Net loss for the six months was $6.3 million compared to net income of $6.5 million in the same period in 2023, a decrease of $12.8 million [9] Operational Highlights - Expanded from 9 to 10 warehouses, increasing total warehouse space from 2 million to over 3.5 million square feet [4] - Major presence established in California, Georgia, and Illinois [4] - Incorporated electric forklifts in California warehouses as part of sustainability initiatives [8] - Enhanced warehouse management systems and upgraded technology to optimize operations [16] Liquidity and Financing - Cash and restricted cash balance as of December 31, 2024, was $7.4 million, down from $10.0 million as of June 30, 2024 [6] - Entered into a $50 million Standby Equity Purchase Agreement and $21 million in convertible promissory notes [10] Management Commentary - The CEO highlighted the commitment to long-term growth despite challenges from increased UPS surcharges and underutilization of new facilities [11] - Focus on optimizing operations and improving facility utilization rates is emphasized for future performance [11]
Armlogi Holding Corp. Announces Fiscal 2025 Second Quarter and Six-Month Results