Leading provider of textile rental and linen management services Angelica Corporation has announced financial results for the three months ended April 29th 2006.
Gross margin grew sequentially from 10.6 percent in the fourth quarter of fiscal 2005 to 13.8 percent in the first quarter fiscal of 2006. It continues to project a gross margin of over 15 percent for the second half of fiscal 2006 and earnings for total fiscal 2006 to be greater than total fiscal 2005.
Revenues for the first quarter of fiscal 2006 were $107.0 million, up 6.5 percent from the first quarter of fiscal 2005. Organic growth excluding acquisitions and divestitures, which happened in fiscal 2005, was 3.1 percent. Of this organic growth rate, pricing represented 2.8 percentage points and volume represented 0.3 percentage points.
Gross profit for the first quarter of fiscal 2006 was $14.7 million, down 5.1 percent from $15.5 million in the first quarter of fiscal 2005. Gross margin for the first quarter of fiscal 2006 was 13.8 percent, down 170 basis points from gross margin in the first quarter of fiscal 2005 of 15.5 percent. The decline in gross margin was anticipated due to higher energy prices stimulated by Hurricane Katrina's impact on energy pricing beginning in mid-2005.
Net loss from continuing operations for the first quarter of fiscal 2006 was $1.5 million versus net income from continuing operations of $1.1 million in the first quarter of fiscal 2005.
Commenting on the results, Steve O'Hara, Chairman and CEO, stated, "While never happy to report a quarterly loss, we are pleased that gross margin grew sequentially as expected. In fact, the increase to 13.8 percent from fourth quarter fiscal 2005 gross margin of 10.6 percent was greater than internal plans, reinforcing our belief that second half fiscal 2006 gross margin will exceed 15 percent and total fiscal 2006 earnings will exceed total fiscal 2005."
marketing@alchempro.com
