Gross margin from rental operations for the quarter was 36.1 percent compared to 37.6 percent in the prior-year quarter. Gross margin for the quarter declined due to higher energy and acquisition integration costs. The fourth quarter of the previous year also benefited from the fixed cost leverage from an extra week of revenue. Gross margin from direct sales was 25.9 percent compared to 20.8 percent in the prior-year period. This increase resulted primarily from the increased level of sales attributed to the Lion Uniform Group and strong organic growth.
Selling, general and administrative expenses were 21.0 percent of consolidated revenue, down from 22.4 percent in the same period last year. The decrease was attributed to a pre-tax charge in the prior-year period of approximately $1.25 million for a legal settlement and leverage from additional revenue, partially offset by investments in sales and marketing initiatives.
Strong Balance Sheet and Cash Flow The company's balance sheet remains strong. Total debt to total capitalization was 33.3 percent compared to 32.9 percent last year. Total stockholders' equity was $475.4 million.
The company also reported strong cash flow for the year. Cash flow from operations totaled $63.0 million driven by stronger earnings offset by working capital investments to support revenue growth and the transition of manufacturing to the company's Dominican Republic facility. Free cash flow, defined as cash provided by operating activities less capital expenditures, was $43.6 million. Capital expenditures for the year were $19.4 million.
marketing@alchempro.com
