Adjusted EBITDA increased 47% to $5.3 million for the quarter. Net income reflected increased sales and improved operating margins and rose to $1.2 million compared with $0.3 million in fiscal 2011. The Company’s net income benefited from improved pretax income and a significant decrease in the effective tax rate from 64% in fiscal 2011 to 46% in fiscal 2012, primarily due to the recognition of foreign tax credits during fiscal 2012. However, due to the utilization of net operating loss carryforwards, the Company’s cash paid for taxes remains significantly less than its effective tax rate.Second Quarter Financial Highlights
- Sales grew in all of the Company’s primary delivery channels.
- Gross profit increased 8% to $25.0 million.
- Adjusted EBITDA increased 47% to $5.3 million, compared with $3.6 million in the prior year.
- Adjusted EBITDA/Sales percentage increased to 13.8% from 10.2% last year.
- Net income increased to $1.2 million compared with $0.3 million in the second quarter of fiscal 2011.
- EPS grew by 200%, to $.06 per diluted share, from $.02 per diluted share in the second quarter of fiscal 2011.
- Cash and cash equivalents totaled $8.2 million at February 25, 2012 with no borrowings on the revolving line of credit.