For the third quarter, on an ongoing basis (continuing operations excluding the impairment, restructuring and other non-recurring charges), net sales were $404.1 million as compared to $397.0 million in the third quarter last year.
Operating earnings (gross profit less selling, general & administrative expense before stock option expense, amortization and impairment, restructuring and other non-recurring charges) for the third quarter were $17.4 million compared to $22.4 million, last year.
Net earnings on an ongoing basis were $4.0 million, or $0.15 per diluted share, compared to $10.6 million, or $0.41 per diluted share in the third quarter last year. Net interest expense totaled $7.0 million and reflected lower interest income on cash balances having utilized $311.9 million for the Hanna Andersson, Royal Robbins, Vince and HOLLYWOULD acquisitions.
The third quarter tax rate from ongoing operations was 34.8% compared to 35.8% last year. The 2007 third quarter effective tax rate was lower than the Company's expected third quarter tax rate of 44% due to certain discrete state tax items that benefited diluted earnings per share by $0.02.
The effective tax rate for the third quarter of 2007 was also lower than the Company's expected annual effective tax rate of 39% due to discrete items, which benefit the full year tax rate being recorded in the third quarter under Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes - An Interpretation of FASB Statement No. 109 (FIN 48).
marketing@alchempro.com
