Adjusted EBITDA increased 10% to $5.8 million for the quarter. Net income reflected the increase in sales, improved operating margins, and a decreased effective income tax rate and rose to $1.6 million compared with $0.7 million in fiscal 2011. The Company’s net income benefited from improved pretax income and a significant decrease in the effective tax rate from 67% in fiscal 2011 to 42% in fiscal 2012, primarily due to the recognition of foreign tax credits during fiscal 2012. Due to the utilization of net operating loss carryforwards, the Company’s cash paid for taxes continues to remain significantly less than its income tax expense.Third Quarter Financial Highlights
- Sales grew in all of the Company’s major sales channels.
- Gross profit increased to $26.1 million on increased sales and a slight increase in gross margin.
- Adjusted EBITDA increased 10% to $5.8 million, compared with $5.2 million in fiscal 2011.
- Adjusted EBITDA/Sales percentage increased to 13.9% from 12.8% last year.
- Net income more than doubled to $1.6 million compared with $0.7 million in the prior year.
- EPS grew by 125%, to $.09 per diluted share, from $.04 per diluted share in the third quarter of fiscal 2011.
- Cash and cash equivalents totaled $6.5 million at May 26, 2012 with no borrowings on the line of credit facility.