Home / Knowledge / News / Apparel/Garments / Q1FY15 earnings from operations up 23% at G&K Services
Q1FY15 earnings from operations up 23% at G&K Services
04
Nov '14
Earnings from continuing operations grew 23 percent year-on-year in the first fiscal quarter ending September 27, 2014, at US based & NASDAQ-listed - G&K Services, a provider of uniform and facility services programs.

In its first fiscal quarter of 2014, earnings from continuing operations grew 23 percent to $0.81 per diluted share, compared to adjusted earnings from continuing operations of $0.66 per diluted share in the prior year first fiscal quarter.

First quarter of 2014 revenue, however grew slower at 4.5 percent to reach $230.2 million, up from $220.2 million in last year’s first fiscal quarter.

The organic growth rate, which adjusts for the impact of currency exchange rate differences, acquisitions and divestitures stood at 5.4 percent from a year ago period.

“This strong organic growth was partially offset by the negative impact of a lower exchange rate for the Canadian dollar,” G&K Services said.

Operating margin from continuing operations expanded to 11.7 percent in the reporting quarter, a 130 basis point increase compared to an adjusted operating margin from continuing operations of 10.4 percent in last year’s first quarter.

G&K Services said, “The higher operating margin was primarily driven by operating leverage from revenue growth and productivity improvements in rental operations. These improvements more than offset higher rental merchandise expense, and increased employee healthcare costs.”

Interest expense in the quarter under review rose to $1.8 million, compared to $1.6 million in the prior-year quarter, primarily due to higher total debt resulting from funding the special dividend which was paid in June 2014.

The effective tax rate decreased to 34.7 percent in the first quarter of 2014, against 38.1 percent in the first quarter last year, primarily due to the release of reserves related to the expiration of certain tax statutes.

The lower tax rate positively impacted first quarter earnings by approximately $0.04 per share. Diluted share count was 20.0 million, compared to 19.8 million in last year’s first quarter.

The company ended the first quarter with total debt, net of cash, of $231.1 million and a ratio of debt to total capital of 41.6 percent. Total stockholders’ equity at the end of the quarter was $378.3 million.

“On a three month annualized basis, return on invested capital (ROIC) increased 180 basis points to 10.8 percent, compared to 9.0 percent in the first quarter last year,” G&K Services informs.

G&K expects fiscal 2015 revenue to be in a range of $930 million to $950 million. Based on first quarter results, the company now expects full-year earnings per diluted share between $3.15 and $3.30, up from the previously announced range of $3.10 to $3.25. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Indonesia, Australia to sign CEPA in March

Textiles | On 16th Feb 2019

Indonesia, Australia to sign CEPA in March

Indonesia will sign a comprehensive economic partnership agreement...

Accord notes lack of progress in transition in Bangladesh

Apparel/Garments | On 16th Feb 2019

Accord notes lack of progress in transition in Bangladesh

The Accord recently expressed deep concern over the lack of progress...

Uzbek Prez signs decree for further textile sector reforms

Textiles | On 16th Feb 2019

Uzbek Prez signs decree for further textile sector reforms

Uzbek President Shavkat Mirziyoyev signed a decree recently for...

Interviews View All

Manuj Terapanthi, Texaura

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Shiladitya K Joshi, Truetzschler India Private Limited

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Divyesh Mashruwala, Akshar Industries

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Liz Manning,

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Sugandha Bhardwaj,

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Ravi Raj Desai,

Ravi Raj Desai

Himalaya Cotton Yarn Ltd manufactures high quality denier. The spinning...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Giorgio Mantovani, Corman S.p.A

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Alfonso Marra, Klopman

Alfonso Marra
Klopman

It was in 1968 that Klopman introduced the concept of poly/cotton workwear ...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search