(NYSE Amex: CCF)
today reported revenues of $32.6 million for the quarter ended May 31, 2011. This represents a decrease of 2% compared to $33.3 million in the third fiscal quarter of last year. Income from continuing operations, net of tax, decreased 23% to $2.97 million or $0.33 per share in the current quarter compared to $3.84 million or $0.43 per share in fiscal 2010. Net income was $4.40 million or $0.50 per share in the prior year period due to income from discontinued operations.
For the nine months ended May 31, 2011 revenues increased $6.9 million or 8% to $90.2 million compared to $83.3 million in the prior year period. Income from continuing operations, net of tax, increased $434 thousand or 6% to $7.31 million or $0.81 per share in the year to date period from $6.88 million or $0.78 per share in fiscal 2010. Net income was $8.15 million or $0.92 per share in the comparable period in fiscal 2010 due to income from discontinued operations.
Peter R. Chase, Chairman and Chief Executive Officer commented: “As mentioned in our previous reports, the effect of the sale of Chase EMS during fiscal 2010 complicates the year-to-year comparison.
“The major factors behind the decline in profits for the third quarter in comparison to the previous year are: a drop in custom product sales to the construction and building sectors, increased R&D and marketing expenditures and, most significantly, rising raw material costs. We anticipate this trend continuing in the fourth quarter.
“Demand for custom products is expected to remain at the same level through the end of this fiscal year. Both the third and fourth quarters of fiscal 2010 had extraordinary sales in this area which was the result of a temporary build up after the last economic slow down. By its nature, this is also our least predictable market area.