The decrease in SG&A expenses resulted from reduced wages, benefits and incentive compensation of $1.1 million, a $0.3 million decline in travel and vehicle costs, and lower bad debt and sales tax accruals of $0.2 million, as well as the absence of prior year expenses of $0.6 million associated with the operations process improvement implementation and Board of Directors' Special Committee.
Income from operations before other operating income for the third quarter fiscal 2007 was $4.4 million, up 54% from $2.8 million in fiscal 2006. Since other operating income includes occasional gains from sales of certain assets and other non-recurring items, Angelica believes income from operations before other operating income is a measure of its base operations.
Other operating income for the third quarter of fiscal 2007 was $0.4 million, down $2.0 million from $2.4 million in third quarter of fiscal 2006. Other operating income in the third quarter of fiscal 2007 consisted primarily of a gain on divestiture of certain non-healthcare customer accounts.
In the third quarter of fiscal 2006, other operating income of $2.4 million reflected a gain from the sale of real estate and a settlement received from the lawsuit that was initiated in connection with the Vallejo eminent domain proceedings in fiscal 2005.
Therefore, income from operations for the third quarter of fiscal 2007 was $4.8 million compared to $5.3 million in fiscal 2006. Non-operating income of $0.5 million in the third quarter of fiscal 2007 included a $0.3 million gain from the death benefit of a Company-owned life insurance policy.
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