Global Apparel Market – An Overview | Watch NOW! | Ad
Home / Knowledge / News / Apparel/Garments / G&K surpasses $1 billion in fiscal year revenue
G&K surpasses $1 billion in fiscal year revenue
12
Aug '08
G&K Services Inc reported record revenue for the fiscal year ended June 28, 2008 of $1,002.4 million, a 7.8 percent increase from previous year revenue of $929.5 million.

The increase in revenue was driven by rental organic growth, strong revenue contribution from acquisitions and the benefit of foreign currency translation.

For the fiscal year, earnings were a record $2.27 per diluted share, a 12.4 percent increase from $2.02 per diluted share in the prior fiscal year.

The increase in earnings per diluted share was driven by a 14.1 percent improvement in operating income as a result of leverage from revenue growth, improved productivity and lower merchandise costs.

The growth in operating income was achieved despite continued economic softness, higher energy costs, lower contribution from direct sales and expenses related to systems implementation activities.

Fiscal 2008 earnings per diluted share were also impacted by a higher effective tax rate of 38.5 percent as compared to the prior year tax rate of 34.0 percent. The lower effective tax rate resulted in a $0.14 per diluted share benefit in the prior year.

“Surpassing one billion in annual revenue marks another milestone we've achieved since introducing our new strategic vision four years ago,” said Richard Marcantonio, chairman and chief executive officer.

“I would like to thank each member of the G&K team for their continued hard work and dedication in driving this record level of revenue, our thirty-ninth consecutive year of revenue growth.

In addition to reporting solid top-line revenue growth, we delivered improved operating margins, record earnings and record cash flow for the fiscal year.

Overall, we're pleased to report another strong fiscal year, despite challenging economic conditions. We'll continue to execute against our long-term strategic plan to drive further positive momentum and achieve our vision of being the market leader in enhancing image and safety in the workplace through innovation.”

For the fourth quarter ended June 28, 2008, total revenue was $252.2 million, a 4.9 percent increase over prior-year revenue of $240.4 million. The increase in fourth quarter revenue was driven by rental organic growth, revenue contribution from acquisitions and the benefit of foreign currency translation.

The company reported fourth quarter earnings of $0.55 per diluted share, which exceeded expectations. Fourth quarter earnings per diluted share were driven by leverage from overall revenue growth, savings from productivity initiatives and the accretive benefit of continued share repurchase activity.

These benefits were offset by higher energy costs, increased product input prices, increased interest expense associated with the higher debt levels required to fund acquisitions and share repurchases and a higher effective tax rate.

Prior-year fourth quarter earnings of $0.57 per diluted share reflected a lower effective tax rate of 34.6 percent. The lower effective tax rate resulted in a $0.05 per diluted share benefit in the prior-year period.

Fourth quarter revenue from G&K's rental business increased to $234.5 million, up 7.0 percent over the prior-year period. The company's organic rental growth rate was approximately 2.0 percent in the quarter.

Organic rental growth continues to reflect solid new account sales, route sales performance and price increases, offset by an increase in economic-driven customer attrition and a reduction in employment levels within certain industries.

Direct sale revenue was $17.7 million, compared to $21.3 million in the prior-year period. Direct sales volume compared to the year-ago period continues to be impacted by weakness in certain customer end-markets and soft overall economic conditions.


Must ReadView All

AmCham Cambodia cautions US against possible sanctions

Apparel/Garments | On 22nd Sep 2018

AmCham Cambodia cautions US against possible sanctions

In a letter to US lawmakers, the American Chamber of Commerce...

Courtesy: ycloset

Apparel/Garments | On 22nd Sep 2018

Alibaba invests in clothes sharing platform Ycloset

Chinese garment sharing platform YCloset has completed an undisclosed ...

KG cracker; courtesy: Ineos

Textiles | On 22nd Sep 2018

Ineos to invest £60 mn in the UK to expand production

Ineos has announced plans to invest £60 million to expand its...

Interviews View All

Angelina Francesca Cheang, MY ANJE

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Varinder Singh Jawanda, Trendy Bharat

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Subhashini Srinivasan, The S Studio

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Ramez Basmaji,

Ramez Basmaji

Fabusse is a Lebanon-based fashion agency that offers a variety of...

Siddhachakra Weaving (Badiya Fashion),

Siddhachakra Weaving (Badiya Fashion)

Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...

Ray Baughman, University of Texas -Dallas

Ray Baughman
University of Texas -Dallas

<div>A team of scientists and researchers have discovered twistrons,...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Prof Seokheun (Sean) Choi, Binghamton University, State University of New York (SUNY)

Prof Seokheun (Sean) Choi
Binghamton University, State University of New York (SUNY)

A team of researchers from the State University of New York (SUNY),...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave 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


September 2018

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

news category


Related Categories:

Advanced Search