|Financial Highlights (Amounts in Thousands, Except Per Share Data)||Three Months Ended|
|September 30, 2011||September 30, 2010||Percent Change|
|Gross Profit %||17.4||%||16.0||%|
|Selling and Administrative Expense||$||45,968||$||47,340||(3%||)|
|Selling and Administrative Expense %||17.1||%||16.1||%|
|Operating Income (Loss)||$||889||$||(310||)||387||%|
|Operating Income (Loss) %||0.3||%||(0.1%||)|
|Net Income (Loss)||$||(146||)||$||456||(132%||)|
|Earnings (Loss) Per Class B Diluted Share||$||0.00||$||0.01||(100%||)|
- Consolidated net sales in the first quarter of fiscal year 2012 decreased 8% from the prior year first quarter as an increase in net sales in the Furniture segment was more than offset by a decline in net sales in the Electronic Manufacturing Services (EMS) segment. Sequentially, consolidated net sales in the first quarter of fiscal year 2012 decreased 4% from the most recent fourth quarter as an increase in net sales in the Furniture segment was more than offset by a decline in net sales in the EMS segment.
- First quarter gross profit as a percent of net sales improved 1.4 percentage points from the prior year first quarter due to a shift in sales mix towards the Furniture segment which carries a higher gross profit percentage than the EMS segment.
- Consolidated first quarter selling and administrative expenses declined 3% compared to the prior year due to the favorable impact of the normal revaluation to fair value of the Company's Supplemental Employee Retirement Plan (SERP) liability. The SERP liability revaluation was a reduction of $2.0 million in the first quarter of the current fiscal year compared to an increase in the liability of $1.2 million in the prior year, and has an exactly offsetting impact in Other Income/Expense where the SERP investment revaluation is recorded. Excluding the SERP revaluation impact, consolidated first quarter selling and administrative expenses increased 4% on increased spending on sales and marketing initiatives to drive growth, increased labor costs, and higher commissions associated with the increased sales levels in the Furniture segment.
- Other Income/Expense for the first quarter of fiscal year 2012 was expense of $1.2 million compared to income of $0.8 million in the prior year first quarter, with the variance primarily related to the loss on the revaluation of the SERP investment discussed above.
- Operating cash flow for the first quarter of fiscal year 2012 was a cash outflow of $6.6 million compared to an operating cash outflow of $10.4 million in the first quarter of the prior year.
- The Company's cash and cash equivalents declined to $35.0 million at September 30, 2011 compared to $51.4 million at June 30, 2011 primarily due to the operating cash outflow mentioned above and the reinvestment of $8.2 million into capital investments during the quarter mostly for manufacturing equipment in the EMS segment. The Company had no short-term borrowings outstanding at September 30, 2011 or June 30, 2011. Long-term debt including current maturities is $0.3 million.