McRae Industries, Inc. Reports Earnings for Second Quarter of Fiscal 2005
2005年3月16日 - 6:45AM
PRニュース・ワイアー (英語)
McRae Industries, Inc. Reports Earnings for Second Quarter of
Fiscal 2005 MOUNT GILEAD, N.C., March 15 /PRNewswire-FirstCall/ --
McRae Industries, Inc. (Amex: MRIA; MRIB) reported consolidated net
revenues from continuing operations for the second quarter of
fiscal 2005 of $15,525,000 as compared to $14,896,000 for the
second quarter of fiscal 2004. Net earnings for the second quarter
of fiscal 2005 amounted to $482,000, or $.17 per share, as compared
to a net loss of $14,000, or less than $.01 per share, for the same
period of fiscal 2004. The 4% increase in consolidated net revenues
resulted from higher demand for western and work boot and bar code
business products, which was partially offset by lower military
boot requirements by the U.S. Government. The growth in
consolidated net earnings for the second quarter of fiscal 2005 as
compared to the second quarter of fiscal 2004 was the result of
improved performance by the bar code and western and work boot
businesses and a $2,000 loss from discontinued operations in the
second quarter of fiscal 2005 compared to a $141,000 loss from
discontinued operations in the second quarter of fiscal 2004.
Consolidated net revenues from continuing operations for the first
six months of fiscal 2005 amounted to $35,958,000 as compared to
$30,919,000 for the first six months of fiscal 2004. This increase
in net revenues was primarily attributable to higher military boot
requirements by the Government and improved markets for the bar
code and western and work boot products. Net earnings for the first
six months of fiscal 2005 amounted to $3,195,000, or $1.15 per
share as compared to $548,000, or $.20 per share, for the first six
months for fiscal 2004. This increase in net earnings was primarily
attributable to the improved performance of our western and work
boot business and the sale of our office products business, which
contributed $1.9 million for the first six months of fiscal 2005 as
compared to a $402,000 loss for the first six months of fiscal
2004. On September 30, 2004, the U.S. Government (the Government)
exercised the first year option under our Contract with the
Government awarded to us on September 30, 2003 (the Contract).
Since the completion of the "surge" requirement in the first
quarter of fiscal 2005, the Government has reduced its production
requirement and the minimum boot requirement under the Contract has
been reduced from 276,460 pair to 138,230 pair. In addition, we
were not successful in securing a recent Government contract to
supplement our current Contract. As a result, on March 3, 2005 we
decided to consolidate all military boot production at our North
Carolina plant by closing our Tennessee manufacturing facility
effective March 18, 2005. The closing of this plant will impact 120
employees and we estimate will cause us to incur approximately
$130,000 to $140,000 in severance costs. We are currently
evaluating asset impairment issues (the Tennessee manufacturing
facility currently has a book value of approximately $330,000) and
other matters related to the plant closing. In addition to
historical information, this press release includes certain
forward-looking statements as such term is defined in Section 27A
of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Important factors that could cause actual
results or events to differ materially from those projected,
estimated, assumed or anticipated in any such forward-looking
statements include: the effect of competitive products and pricing,
risks unique to selling goods to the Government (including
variation in the Government's requirements for our products and the
Government's ability to terminate its contracts with vendors), loss
of key customers, acquisitions, supply interruptions, additional
financing requirements, our expectations about future Government
orders for military boots, loss of key management personnel, our
ability to successfully develop new products and services, and the
effect of general economic conditions in our markets. Three Months
Ended Six Months Ended January 29, January 31, January 29, January
31, 2005 2004 2005 2004 Net revenues from continuing operations
$15,525 $14,896 $35,958 $30,919 Earnings from continuing operations
before income taxes 698 206 1,942 1,489 Income taxes provision
(benefit) 214 82 651 544 Minority shareholder's interest - (3) -
(5) Net earnings from continuing operations 484 127 1,291 950 Net
earnings (loss) from discontinued operations (2) (141) 1,904 (402)
Net earnings (loss) $482 $(14) $3,195 $548 Net earnings (loss) per
common share: Continuing operations $.17 $.05 $.46 $.34
Discontinued operations - (.05) .69 (.14) Net earnings per common
share $.17 $.00 $1.15 $.20 Weighted average number of common shares
outstanding 2,768,499 2,768,499 2,768,499 2,768,499 DATASOURCE:
McRae Industries, Inc. CONTACT: Gary McRae, President of McRae
Industries, Inc., +1-910-439-6147 Web site:
http://www.mcraeindustries.com/
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