G&K Services reports fiscal 2007 Q4 & full year results
14 Aug '07
2 min read
G&K Services Inc reported record revenue for the fiscal fourth quarter ended June 30, 2007 of $240.4 million, a 5.7 percent increase from previous year revenue of $227.4 million. Organic rental growth combined with revenue from acquisitions contributed to the increase in revenue over the prior-year.
Fourth quarter earnings per diluted share exceeded expectations and totaled $0.57, an 11.8 percent increase over last year's fourth quarter.
The increase in earnings compared to the prior-year was driven by solid revenue growth, efficiencies in production and delivery costs, reduced administrative expenses and a lower than anticipated effective tax rate, partially offset by increased selling expenses.
The prior-year period also included a gain from a legal resolution that represented approximately $0.08 per diluted share. Excluding this gain, fourth quarter earnings per diluted share increased by 32.6 percent.
"We're extremely pleased to report strong fourth quarter performance," said Richard Marcantonio, chairman and chief executive officer. "As expected, we delivered operating margin expansion in the fourth quarter. Clearly, the successful execution of our strategic investments continues to drive improvement in operating margin."
Fiscal 2007 revenue reached a record $929.5 million, an increase of $48.7 million over the prior year, marking the company's 38th consecutive year of revenue growth. Organic growth from rental operations and direct sales, combined with revenue from acquisitions and the impact of currency translation, contributed to year-over-year revenue growth.
marketing@alchempro.com
