Financial Strength The company's balance sheet remains strong. As of March 27, 2010, the company had total borrowings of $174.7 million and a debt to capitalization ratio of 27.2 percent. Total shareholders' equity at the end of the third quarter was $468.1 million.
The company continued to generate strong cash flow from operations and has reduced its debt, net of cash, by $77.9 million in the last 12 months. Cash provided by operating activities for the nine months ended March 27, 2010 was $54.2 million, driven by continued strong working capital management. During the fiscal year, the company has generated $21.7 million from the divestiture of business assets. For the nine month period, free cash flow, defined as cash flow from operations less capital expenditures, was $42.0 million.
Outlook The company expects fourth quarter revenue to be generally consistent with the third quarter, after adjusting for divestitures and the 53rd week of fiscal 2010. Fourth quarter operating income margin is expected to improve slightly from the third quarter adjusted operating income margin.