For the six months ended July 1, 2005, net sales decreased 9.9 percent to $82.0 million, compared to $90.9 million in the comparable period of 2004. The Company's gross margin in the first six months of fiscal 2005 increased 41.2 percent compared to 40.8 percent in the six months ended July 2, 2004.
Selling, general and administrative expenses as a percentage of net sales increased 31.8 percent for the six months ended July 1, 2005 compared to 27.4 percent in the six months ended July 2, 2004.
In absolute dollars, selling, general and administrative expenses increased 4.4 percent, due primarily to $922,000 in transaction costs related to the evaluation of their strategic alternatives and the sale of the company and $150,000 in costs related to the settlement of a patent infringement lawsuit.
The Company does not receive any tax benefit from the transaction costs as they are not deductible for tax purposes.
Net income for the six months ended July 1, 2005 decreased 32.9 percent to $4.9 million, compared to $7.3 million in the comparable period of 2004, primarily because of lower revenues and the transaction costs referred to above.
Diluted earnings per share decreased to $0.64 per Class A share and $0.70 per Class B share for the six months ended July 1, 2005, compared to diluted earnings per share of $0.98 per Class A share and $1.08 per Class B share for the six months ended July 2, 2004.
Our backlog of open orders at July 1, 2005 scheduled for delivery within the next five months (July 1, 2005 - November 25, 2005) decreased 8.9 percent to $40.9 million, compared to $44.9 million at July 2, 2004. At July 1, 2005, the open order backlog for delivery in the next 12 months decreased 9.7 percent to $44.2 million, from $49.0 million at July 2, 2004.
Peabody, Massachusetts located Saucony Inc is a leading global supplier of performance athletic footwear, apparel and accessories with its widely recognized brands Saucony, Saucony Originals, Hind and Spot-bilt. All Saucony Inc sports brands develop and manufacture technically advanced products that improve the performance of active sports participants.
marketing@alchempro.com
