Q2FY17 EPS halves at uniform services provider G&K Services

04 Feb '17

1 min read

For the three months ended December 31, 2016, earnings per diluted share halved at US based uniform services provider G&K Services, to $0.46 as against $0.92 in the second quarter of the earlier fiscal. Excluding $0.44 per share of merger-related costs in the second quarter of fiscal 2017, adjusted non GAAP earnings were $0.90 per diluted share.

Revenue in the reporting quarter rose by a marginal 0.4 per cent to $244.1 million, compared to $243.1 million in last fiscal’s second quarter.

Second quarter of fiscal 2017 operating margin, including the impact of merger-related costs, was 8.5 per cent, while excluding merger-related costs; adjusted operating margin was 12.6 per cent vis-à-vis 13.0 per cent in the prior fiscal’s comparable quarter.

According to the company, the decline in adjusted operating margin was primarily driven by higher administrative costs and increased bad debt expense, partially offset by lower health insurance and workers compensation costs, and decreased rental merchandise expense. (AR)

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