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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Mannie who wrote (32854)	6/21/2020 9:58:35 AM
From: robert b furman	1 Recommendation Recommended By E_K_S Read Replies (1) \| Respond to of 34328

Hi Mannie, The savings from the cut will be applied to early termination of an equipment loan that was due to be paid off by the end of 2022. They indicated THEIR ORDERS WERE GROWING and that the 1 cent cut would be reinstated when revenue reaches the previous levels. They also indicated a reduced expenditure level had been achieved. AMNF's orders from their commercial distributors had been impacted with the closing of restaurants. The commercial sales had fallen greater than the grocery store increase in sales. This will be a short term opportunity to "add to" below $2.50, for me at least. I like their conservative way of doing business. Douglas R. Nichols, Chairman of the board stated, “As previously disclosed, we expect to report a loss for our second quarter ending June 30, 2020; however, thanks to the strength of our balance sheet, Armanino Foods will continue our proud tradition of rewarding our shareholders with a quarterly dividend payment despite the adverse effect that the COVID 19 pandemic has had on our business in Q2. Because we are seeing sales continue to improve and have implemented many cost savings measures since the beginning of the pandemic, we are comfortable with paying a reduced dividend, and are confident of our financial position even if a second wave of the virus emerges. The $320,000 savings from the dividend reduction will be utilized to payoff an equipment loan with a balance that closely approximates the dividend savings. That loan was otherwise scheduled to mature at the end of 2022. This strategy, coupled with our cost reductions across all functions, enables us to reinvest in our core business and strategic growth initiatives. Due to unprecedented uncertainty regarding the COVID 19 pandemic, we remain guarded on the outlook of our financial performance for the remainder of this year. It is the board’s intention to reinstate the dividend to $0.0275 per share as soon as business conditions return to historic levels.” Bob