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Global News: McRae Industries, Inc. Reports Earnings For The First Quarter Of Fiscal 2018

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McRae Industries, Inc. (Pink Sheets:   MCRAA and MCRAB) said merged internet revenues for the primary quarter of fiscal 2018 of $22,399,000 as a distinction to $29,872,000 for the primary quarter of fiscal 2017.  Web earnings for the primary quarter of fiscal 2018 amounted to $1,292,000, or $zero.54 per diluted Class A standard share as the distinction to $1,527,000, or $zero.63 per diluted Class A standard share, for the primary quarter of fiscal 2017.

FIRST QUARTER FISCAL 2018 CONTRAST TO FIRST QUARTER FISCAL 2017

Merged internet revenues totaled $22.four million for the primary quarter of fiscal 2018 as a distinction to $29.9 million for the primary quarter of fiscal 2017. Gross sales associated with our western/lifestyle boot merchandise for the primary quarter of fiscal 2018 totaled $13.three million as the distinction to $14.5 million for the primary quarter of fiscal 2017.  This eight% lower was primarily attributable to the lower in gross sales for males’ western boots and premium child’s boots.  Revenues from our work boot merchandise decreased about 41%, from $15.four million for the primary quarter of fiscal 2017 to $9.1 million for the primary quarter of fiscal 2018.  That is primarily a result of decreased navy boot gross sales. 

We now have been awarded a brand new contract with the USA Authorities for warm climate Military fight boots.  This contract is for a base 12 months and 4 possibility years.  Nevertheless, due to the federal government’s over the inventoried place on this product, the primary supply order was lower than anticipated and the supply timeframe was prolonged.  The contract for the temperate climate Military fight boots is not going to be awarded until January or February of 2018 and these contracts may also be for a base 12 months and 4 possibility years.  We’re within the technique of concluding our obligations on the present temperate climate Military fight boot contract.  These developments are anticipated to negatively affect our navy boot gross sales for fiscal 2018.

Merged gross revenue for the primary quarter of fiscal 2018 amounted to about $6.2 million as the distinction to $7.four million for the primary quarter of fiscal 2017. Gross revenue as a proportion of internet revenues was up from 24.7% for the primary quarter of fiscal 2017 to 27.eight% for the primary quarter of fiscal 2018. That is attributable to the gross sales combine being extra closely weighted in the direction of increased margin western and work boots.

Merged promoting, common and administrative (“SG&A”) bills totaled about $four.2 million for the primary quarter of fiscal 2018 as the distinction to $5.zero million for the primary quarter of fiscal 2017. This lower in SG&A bills resulted primarily from decreased expenditures for medical health insurance, pc providers, and salaries.

Because of the above, the merged working revenue for the primary quarter of fiscal 2018 amounted to $2.zero million as a distinction to $2.four million for the primary quarter of fiscal 2017.

Monetary Situation and Liquidity

Our monetary situation remained sturdy at October 28, 2017, as money and money equivalents totaled $29.2 million as a distinction to $28.1 million at July 29, 2017. Our working capital raised from $54.three million at July 29, 2017, to $55.1 million on October 28, 2017.

We presently have two strains of credit score totaling $6.75 million, all of which have been absolutely obtainable at October 28, 2017. One credit score line totaling $1.75 million (which is restricted to a hundred percent of the excellent receivables due from the Authorities) expires in January 2018. Our $5.zero million line of credit score, which additionally expires in January 2018, is secured by the stock and accounts receivable of our Dan Publish Boot Firm accomplice.

Web money supplied by working actions for the primary quarter of fiscal 2018 amounted to $2.zero. Web earnings, as adjusted for depreciation, contributed about $1.6 million of money. Accounts receivable used about $1.6 million of money as first-quarter gross sales outpaced buyer funds. Each of our boot companies supplied about $1.zero million of money as efforts to scale back stock ranges paid off.  The timing of funds for worker associated bills and revenue taxes supplied about $1.zero million of money.

Web money utilized by investing actions totaled about $500,000, primarily for manufacturing equipment and tools.

Web money utilized in financing actions totaled $311,000, which was used for dividend funds.

We consider that our present money and money equivalents, money generated from operations, and obtainable credit score strains will likely be enough to satisfy our capital necessities for the rest of fiscal 2018.

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