McRae Industries, Inc. Reports Earnings for Second Quarter of Fiscal 2004
March 16 2004 - 5:00PM
PR Newswire (US)
McRae Industries, Inc. Reports Earnings for Second Quarter of
Fiscal 2004 MOUNT GILEAD, N.C., March 16 /PRNewswire-FirstCall/ --
McRae Industries, Inc. (Amex: MRIA; MRIB) reported consolidated net
revenues for the second quarter of fiscal 2004 of $19,427,000 as
compared to $17,611,000 for the second quarter of fiscal 2003. Net
loss for the second quarter of fiscal 2004 amounted to $14,000, or
less than $.01 per share, as compared to net earnings of $372,000,
or $.14 per share, for the same period of fiscal 2003. The 10%
increase in consolidated net revenues for the second quarter of
fiscal 2004 as compared to the second quarter of fiscal 2003 was
primarily the result of increased military boot requirements for
the U.S. Government (the "Government") and slight market
improvement for bar code products. The increase in military boot
and bar code sales was partially offset by reduced demand for
western and work boots. The decline in consolidated net earnings
for the second quarter of fiscal 2004 was the result of higher
military boot manufacturing costs, lower selling prices for
military boots, and increased research and development costs. In
addition, the second quarter of fiscal 2003 net earnings included a
$314,000 gain from the sale of ourmotel property. Consolidated net
revenues for the first six months of fiscal 2004 amounted to
$40,823,000 as compared to $37,408,000 for the first six months of
fiscal 2003. This increase in net revenues was primarily
attributable to higher military boot requirements by the Government
that was partially offset by lower sales of western and work boots
and lower selling prices for military boots. Consolidated net
earnings fell from $911,000 for the first six months of fiscal 2003
to $548,000 for the first six months of fiscal 2004. This decrease
in net earnings was primarily attributable to lower profit margins
resulting from higher military boot manufacturing costs and lower
military boot selling prices, increased research and development
costs, and higher administrative costs for health insurance,
professional fees and bad debt write-offs. As noted above, the gain
on the sale of the motel property recorded in the second quarter of
fiscal 2003 also accounted for $314,000 of the decline in net
earnings. McRae Industries, Inc. Condensed and Consolidated
Statements of Income Second Quarter of Fiscal 2004 For the Six
Months Ended January 31, 2004and February 1, 2003 and (In
thousands, except share and per share data) Three Months Ended Six
Months Ended January 31, February 1, January 31, February 1, 2004
2003 2004 2003 Net revenues $19,427 $17,611 $40,823 $37,408
Earnings before income taxes $(22) $601 $840 $1,481 Income taxes
provision (benefit) $(5) $232 $297 $574 Minority shareholder's
interest $(3) $(3) $(5) $(4) Net earnings $(14) $372 $548 $911 Net
earnings per common share $.00 $.14 $.20 $.33 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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