Please fill in your details to download the Table of Contents of this report for free. We also do customization of these reports so you can write to us at firstname.lastname@example.org in case you need any other additional information.
The company reported fourth quarter net earnings of $0.59 per diluted share, a 20 percent increase from adjusted earnings of $0.49 per diluted share in the prior-year period. Adjusted earnings in the prior year excluded a charge of $0.08 per share related to plant consolidation and restructuring activities.
“The fourth quarter was a strong finish to a strong year for G&K,” said Douglas A. Milroy, Chief Executive Officer. “Over the past three years we have made lasting improvements in our business, which are clearly reflected in our financial results.
“Fourth quarter revenue, operating margin, earnings per share, and return on invested capital all reached new high points since the initiation of our game plan. Moving into fiscal 2013, we will build on these successes to drive continued performance gains.”
Income Statement Review
Fourth quarter revenue from rental operations grew solidly to $204.1 million, up from $194.0 million in the prior-year quarter. The rental organic growth rate was 5.8 percent. The organic growth rate is calculated using revenue adjusted for foreign currency exchange rate differences, acquisitions and divestitures.
Rental organic growth was primarily driven by continued strong new account sales, increased revenue from existing rental customers, and improved pricing. Fourth quarter direct sales grew by 1.0 percent to $20.2 million, up from $20.0 million in the prior-year.
Fourth quarter operating margin expanded to 8.7 percent, a 100 basis point improvement from an adjusted operating margin of 7.7 percent in the prior-year. The prior-year adjusted operating margin excluded the impact of the previously mentioned charge related to plant consolidation and restructuring activities.
The operating margin increase was driven by revenue growth leveraging fixed costs, lower selling and administrative expenses, and lower rental production and delivery costs as a percentage of revenue. These improvements were partially offset by an expected increase in rental merchandise expense and lower direct sale gross margins.
Net earnings also benefited from lower interest expense. Interest expense in the current quarter was $1.3 million, down from $2.2 million in the prior-year period, primarily due to a lower effective interest rate, partially offset by increased debt levels.
Balance Sheet and Cash Flow
The company ended the fiscal year with total debt, net of cash, of $198.6 million and a debt to total capital ratio of 35.1 percent. Total debt, net of cash, increased by $85.7 million compared to the prior year, due to increased borrowings used to fund the $6.00 per share special dividend payment made during the quarter. Total stockholders’ equity at the end of the fourth quarter was $403.1 million.
| On 11th Jul 2020
The European Commission recently published a set of resources to help ...
| On 11th Jul 2020
Inditex, a Spanish fashion retailer, has announced that to accelerate ...
ING Bank, the fourth-largest bank by assets in Romania, launched its...
We will promote latest technologies at ITMA Barcelona
It will take some time for the people to change their buying choices
Max Fashion India
‘Traditional high-street retailers are now willing to offer franchisees to ...
Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...
Breya is a brand of Indo-Western clothes for women owned by ABP Apparels...
Japan-based FitJoy, a shoe brand for women, has been in the footwear...
Twinery Innovations by MAS
Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...
Mr Hartmann Huth
Trevira GmbH is an innovative European manufacturer of high-value branded...
Sensoria is a leading developer of smart garments and IoMe (Internet of...
She grew up in the walled city of Old Delhi, completed her studies, and...
"You have to truly understand what your client wants, know her needs, what ...
The Woolmark Company has partnered with handmade fashion label Péro and...
Letter to Editor
Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.
Subscribe today and get the latest information on Textiles, Fashion, Apparel.