McRAE INDUSTRIES, INC. REPORTS EARNINGS FOR THE SECOND QUARTER AND FIRST SIX MONTHS OF FISCAL 2024

FIRST SIX MONTHS FISCAL 2024 COMPARED TO FIRST SIX MONTHS FISCAL 2023

Consolidated net revenues for the first six months of fiscal 2024 totaled $58.6 million as compared to $64.6 million for the first six months of fiscal 2023.  Our western and lifestyle product sales totaled $40.2 million for the first six months of fiscal 2024 as compared to $49.5 million for the first six months of fiscal 2023.  While demand for the Laredo, Dan Post, and Eldorado brands has softened, we also missed some sales during the first six months of our fiscal year due to inventory shortages on select styles.  Net revenues from our work boot business increased from $15.1 million for the first six months of fiscal 2023 to $17.2 million for the first six months of fiscal 2024.  This was primarily a result of increased military boot sales.

Consolidated gross profit totaled $16.9 million, or 28.8%, for the first six months of fiscal 2024 as compared to $18.3 million, or 28.3%, for the first six months of fiscal 2023.  This is primarily due to the improved margins on military boot sales as discussed above.

Consolidated selling, general and administrative expenses totaled approximately $11.6 million for the first six months of fiscal 2024 as compared to $12.2 million for the first six months of fiscal 2023.  This decrease is mainly attributable to lower commissions because of the decrease in sales.

As a result of the above, the consolidated operating profit amounted to $5.3 million for the first six months of fiscal 2024 as compared to $6.1 million for the first six months of fiscal 2023.

On December 23, 2023, the company, through our affiliate American Mortgage and Investment Company and wholly owned subsidiary Hoke Development Company, signed a purchase sale agreement to sell approximately 262 acres in Berkeley Country Club located in Berkeley County, South Carolina to Berkeley Conservation Group LLC.  The terms of the agreement provide for a sales price of $2,650,000 and a maximum due diligence period of 180 days prior to closing.

Financial Condition and Liquidity

Our financial condition remained strong as cash and cash equivalents remained consistent at $18.3 million for January 27, 2024 and July 29, 2023.  Our working capital increased from $75.8 million at July 29, 2023 to $79.0 million at January 27, 2024.

We currently have two lines of credit totaling $6.75 million, all of which was fully available at January 27, 2024.  One credit line totaling $1.75 million (which is restricted to one hundred percent of the outstanding receivables due from the Government) expires in January 2025.  Our $5.0 million line of credit, which also expires in January 2025, is secured by the inventory and accounts receivable of our Dan Post Boot Company subsidiary.

For the first six months of fiscal 2024, operating activities provided approximately $8.4 million of cash.  Net earnings contributed approximately $4.8 million of cash.  Adjustments to reconcile net earnings to net cash provided in operating activities totaled approximately $3.6 million.  These adjustments were driven significantly by decreased inventory and accounts receivable.

Net cash used by investing activities totaled approximately $6.5 million, primarily due to the purchase and sale of securities.

Net cash used in financing activities totaled $2.0 million, which was used primarily for dividend payments.

We believe that our current cash and cash equivalents, cash generated from operations, and available credit lines will be sufficient to meet our capital requirements for the remainder of fiscal 2024.

Forward-Looking Statements

This press release includes certain forward-looking statements.  Important factors that could cause actual results or events to differ materially from those projected, estimated, assumed or anticipated in any such forward-looking statements include: uncertainties associated with COVID-19 or coronavirus, including its possible effects on our operations, supply chain, and the demand for our products and services, our ability to complete the sale of our properties under contract for sale, the effect of competitive products and pricing, risks unique to selling goods to the Government (including variation in the Government's requirements for our products and the Government's ability to terminate its contracts with vendors), changes in fashion cycles and trends in the western boot business, loss of key customers, acquisitions, supply interruptions, additional financing requirements, our expectations about future Government orders for military boots, loss of key management personnel, our ability to successfully develop new products and services, and the effect of general economic conditions in our markets.

McRae Industries, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
		January 27, 2024		July 29, 2023
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$3,301		$2,122
Accrued employee benefits		566		1,783
Accrued payroll and payroll taxes		948		1,293
Lease liability		429		429 Werbung Mehr Nachrichten zur Mcrae Industries Cl A Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 24.04.24 - PR Newswire Capital Gearing Trust Plc - Transaction in Own Shares 24.04.24 - PR Newswire Fidelity European Trust Plc - Monthly Factsheet 24.04.24 - PR Newswire Boeing Company - First Quarter Financial Results Solarboom 2024:    5 Gründe die für diese Aktie sprechen… weiterlesen» Anzeige wo-site-teaser-box-16746_site-teaser-box_2024-04-24_08%253A00%253A00_2024-04-25_09%253A00%253A59