CLARCOR Inc. (CLC) has reported a 9.82 percent rise in profit for the quarter ended Feb. 28, 2015. The company has earned $26.71 million, or $0.53 a share in the quarter, compared with $24.32 million, or $0.48 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $26.70 million, or $0.53 a share compared with $26.50 million or $0.52 a share, a year ago. Revenue during the quarter grew 12.29 percent to $351.12 million from $312.68 million in the previous year period. Gross margin for the quarter expanded 129 basis points over the previous year period to 32.18 percent. Total expenses were 88.84 percent of quarterly revenues, down from 90 percent for the same period last year. This has led to an improvement of 116 basis points in operating margin to 11.16 percent.
Operating income for the quarter was $39.19 million, compared with $31.27 million in the previous year period.
However, the adjusted operating income for the quarter stood at $39.20 million compared to $38 million in the prior year period. At the same time, adjusted operating margin contracted 99 basis points in the quarter to 11.16 percent from 12.15 percent in the last year period.
Chris Conway, CLARCOR’s chairman, president and chief executive officer, commented, "Our first quarter financial and operating results were generally consistent with our expectations heading into the quarter as reflected in the 2015 guidance we provided in our previous earnings release. First quarter sales growth, excluding the impact of acquisitions and changes in foreign currency exchange rates, was 6% continuing the organic growth trend we experienced in 2014.
For financial year 2015, CLARCOR Inc. expects revenue to be in the range of $1,620 million to $1,650 million and diluted earnings per share to be in the range of $3.15 to $3.35.
Operating cash flow remains almost stable
CLARCOR Inc. has generated cash of $18.61 million from operating activities during the quarter, up 0.86 percent or $0.16 million, when compared with the last year period. The company has spent $41.83 million cash to meet investing activities during the quarter as against cash outgo of $277.20 million in the last year period. It has incurred capital expenditure of $20.95 million on net basis during the quarter, up 46.94 percent or $6.69 million from year ago period.
Cash flow from financing activities was $13.84 million for the quarter as against cash outgo of $77.01 million in the last year period. It has made net debt repayment of $28 million. It has spent net of $4.49 million on repurchase of common stocks.
Cash and cash equivalents stood at $84.35 million as on Feb. 28, 2015, up 10.37 percent or $7.92 million from $76.43 million on Mar. 01, 2014.
Working capital increases
CLARCOR Inc. has recorded an increase in the working capital over the last year. It stood at $503.48 million as at Feb. 28, 2015, up 12.89 percent or $57.48 million from $446 million on Mar. 01, 2014. Current ratio was at 3.40 as on Feb. 28, 2015, up from 3.19 on Mar. 01, 2014.
Days sales outstanding went up to 76 days for the quarter compared with 71 days for the same period last year.
Days inventory outstanding has increased to 109 days for the quarter compared with 103 days for the previous year period.
Debt increases substantially
CLARCOR Inc. has witnessed an increase in total debt over the last one year. It stood at $439.50 million as on Feb. 28, 2015, up 354.90 percent or $342.89 million from $96.62 million on Mar. 01, 2014. Total debt was 23.14 percent of total assets as on Feb. 28, 2015, compared with 6.66 percent on Mar. 01, 2014. Debt to equity ratio was at 0.40 as on Feb. 28, 2015, up from 0.09 as on Mar. 01, 2014. Interest coverage ratio decreased to 36.59 for the quarter from 78.16 for the same period last year.
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