Selling, distribution and administrative (“SD&A”) expenses for the fourth quarter of fiscal 2011 increased to $144.6 million compared with $133.1 million in the prior-year period due primarily to commission and freight costs associated with the higher sales volume, additional SD&A expenses attributable to acquired businesses, as well as an increased level of spending on future growth initiatives such as new products, expanded market presence, and technology and innovation. However, fiscal 2011 fourth quarter SD&A expenses as a percentage of net sales decreased 90 basis points year-over-year to 29.1 percent.
Fiscal 2011 Results
Fiscal 2011 net sales were $1,795.7 million compared with $1,626.9 million for the prior-year period, an increase of over 10 percent. Operating profit for fiscal 2011 was $188.7 million, or 10.5 percent of net sales, compared with the prior-year period operating profit of $157.7 million, or 9.7 percent of net sales. Income from continuing operations for fiscal 2011 was $105.5 million compared with $79.0 million for fiscal 2010. Diluted EPS from continuing operations for fiscal 2011 and 2010 were $2.42 and $1.79, respectively. Excluding prior year’s special charges, adjusted operating profit for fiscal 2010 was $166.1 million, or 10.2 percent of net sales. Excluding prior year’s impact of special charges and loss associated with the early retirement of debt, fiscal 2010 adjusted income from continuing operations was $91.3 million and adjusted diluted EPS from continuing operations were $2.08.
OutlookMr. Nagel commented, “We remain very positive about the future prospects for our company and our ability to outperform the markets we serve, particularly as we become more diversified and less reliant on new building construction for growth. We have experienced growth for six consecutive quarters in spite of weak new construction, supporting our diversification strategy. We continue to position the Company to deliver short-term performance while investing in and deploying resources to further our longer-term profitable growth opportunities.