Adjusted EBITDA increased to $11.7 million, or 26%, compared with $9.3 million in fiscal 2011. Net income for the two quarters ended February 25, 2012 totaled $2.8 million ($.16 per diluted share) compared with $1.1 million ($.06 per diluted share) on the strength of improved pretax income and a lower effective income tax rate.
Cash flows from operating activities for the two quarters ended February 25, 2012 increased to $9.2 million compared with $8.3 million in the first two quarters of fiscal 2011.
At February 25, 2012, the Company had $8.2 million in cash and cash equivalents, compared with $3.0 million at August 31, 2011. Net working capital increased to $22.2 million at February 25, 2012 compared with $16.7 million on August 31, 2011 and the Company had a zero balance on its revolving line of credit facility at February 25, 2012.
Common Share Repurchase PlanOn March 26, 2012, the Company’s Board of Directors approved a plan to purchase up to $10.0 million of the Company’s outstanding common stock. The Company intends to use available cash exceeding $10.0 million to make the purchases. All previously existing common stock repurchase plans were canceled and the new common share repurchase plan does not have an expiration date. Revolving Line of Credit Renewal On March 15, 2012, the Company renewed its revolving line of credit agreement with its existing lender. The revolving line of credit facility now expires on March 31, 2013 and provides $10.0 million of cash that may be used for general corporate purposes. Fiscal 2012 Outlook Based on its strong first-half fiscal 2012 performance, the Company now expects Adjusted EBITDA for fiscal 2012 to be toward the higher end of its previously provided guidance range of $24 million to $26 million.