Rising North American yarn demand augments Spinrite Q2 sales
29 Jul '05
4 min read
Craft yarn manufacturer Spinrite reported second quarter results for fiscal 2005.
Highlights:
- Revenue increased 26.6 percent
- Sales of value-added fancy yarns up 33.7 percent and classic yarns up 32.8 percent
- Gross profit increase of 17.3 percent
- Adjusted EBITDA up 8.9 percent to $11.2 million
- Generated distributable cash available to public unitholders of $8.2 million
-Declared three cash distributions to public unitholders totalling $5.1 million Spinrite Income Fund announced its financial results for the 13 weeks ended July 2, 2005, and for the combined 26 weeks from January 1 to July 2, 2005.
"Demand for craft yarns continues to grow steadily throughout North America. As a result, they are pleased to report a strong second quarter for 2005," said Dario Margve, President and Chief Executive Officer. "Furthermore, retailers are anticipating successful Fall and Holiday seasons for craft yarns and have already started increasing inventory positions compared to the prior year," he said.
The second quarter results reported are compared to Spinrite Limited Partnership's results of operations for the 13 weeks ended June 26, 2004. The year-to-date combined results include active operations of the Fund from February 8 to April 2, 2005 and Spinrite Limited Partnership's operations from January 1 to February 7, 2005.
Spinrite's revenue in the second quarter increased by 26.6 percent to $37.7 million, up from $29.8 million for the same period in the prior year. Sales of value-added fancy yarns were up 33.7 percent against strong prior year sales. Classic yarns continued to show strong growth, up 32.8 percent over last year. Revenues of $78.2 million for the 26 weeks ended July 2, 2005 increased by $21.8 million, or 38.7 percent, from $56.4 million for the comparable period ended June 26, 2004. Gross profit in the second quarter increased by 17.3 percent to $14.7 million from $12.5 million for same the period in 2004.
marketing@alchempro.com
