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G&K Services posts record operating income in fiscal 2014
Aug '14
NASDAQ-listed and a branded uniform and facility services programs provider G&K Services, Inc said its full year adjusted operating income touched a record high in its fiscal year ending June 28, 2014.

Full year adjusted operating income from continuing operations rose 17 percent to a record $99.8 million.

For the same period, adjusted operating margin from continuing operations improved to 11.1 percent, up 120 basis points from 9.9 percent in fiscal 2013.

For fiscal 2014, revenue from continuing operations grew 4.0 percent from a year earlier to $900.9 million.

Fiscal 2014 adjusted earnings from continuing operations grew 10 percent also to a record $2.90 per diluted share, compared to $2.63 per share in the prior year.

It said, full year adjusted results excluded net charges of $0.12 per share.

Including these charges, G&K Services reported operating income from continuing operations of $96.1 million, operating margin of 10.7 percent, and earnings from continuing operations of $2.78 per diluted share all from a year earlier period.

It ended fiscal 2014 with total debt, net of cash, of $229.9 million, up from $136.4 million in the prior year, primarily due to additional borrowings to fund the $6.00 per share special dividend that was paid during the quarter. The ratio of debt to total capital was 41.7 percent.

Cash provided by operating activities for the fiscal year was $74.6 million, compared to the record $112.1 million in fiscal 2013.

G&K said the lower operating cash flow was primarily due to investments in inventory to support revenue growth, increased accounts receivable, and timing of federal tax payments.

Capital expenditures during fiscal 2014 were $32.8 million, compared to $35.5 million in fiscal 2013.

During the fiscal year, G&K returned $152.6 million of cash to shareholders through dividend payments and stock repurchases, including the $6.00 per share special dividend.

For the new fiscal year, G&K expects to drive continued performance gains and forecasts revenue in the range of $930 million to $950 million and earnings per diluted share between $3.10 and $3.25.

“We completed another terrific year for G&K,” said CEO, Douglas Milroy. "I am confident we will continue our track record of strong performance in fiscal 2015 and beyond”.

Fibre2fashion News Desk - India

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