Clothing marketer, Gildan Activewear said it posted record earnings per share performance for the fourth fiscal quarter ended October 5, 2014 for any fiscal quarter in its history.
Net earnings in the fourth quarter of fiscal 2014 were US$ 122.7 million or $1.00 per share on a diluted basis as against $96.8 million or $0.79 per share for the fourth quarter of fiscal 2013.
While adjusted net earnings were $122.8 million or $1.00 per share for the reporting quarter compared with adjusted net earnings of $102.0 million or $0.83 per share in the year ago quarter.
Fourth fiscal quarter of 2014 adjusted EPS is before reflecting restructuring and acquisition-related costs and a charge for unwinding interest rate swaps in the fourth quarter of the previous year.
Driven by higher sales in both operating segments, including the impact of the acquisition of Doris, combined with lower income tax and financial expenses, Gildan said, it posted record earnings.
Net sales in the quarter under review amounted to $666.0 million, up 6.4 per cent from $626.2 million in the fourth quarter of fiscal 2013.
The growth in sales came from increased sales of branded underwear and activewear in Branded Apparel, higher Printwear sales and the impact of the acquisition of Doris.
Consolidated gross margins in the fourth quarter of fiscal 2014 were 28.8 per cent, up from 28.3 per cent in the fourth quarter last year.
“The improvement in consolidated gross margins was primarily due to more favourable product-mix in both operating segments, higher net selling prices in Printwear impact of Doris acquisition,” Gildan said.
SG&A expenses in the fourth quarter of 2014 were $72.2 million, compared with $69.7 million in the same quarter of previous year, rising mainly due to the acquisition of Doris.
SG&A expenses excluding the impact of the Doris acquisition were slightly down compared to last year mainly due to lower variable compensation expenses, partially offset by higher advertising expenses.
Excluding the impact of Doris, SG&A expenses as a percentage of sales in the fourth quarter of fiscal 2014 were down to 10.5 per cent compared to 11.1 per cent a year ago.
During the reporting quarter, Gildan generated $112.5 million of free cash flow, after financing capital expenditures of $73.3 million.
For fiscal 2014, the apparel marketer utilized $23.7 million of cash after financing working capital increases and capital expenditures of $292.7 million.
As a result of lower than forecast shipments in Branded Apparel in the fourth quarter, inventory levels at the end of the fourth quarter were approximately $50 million higher than planned.
Gildan ended the fiscal year with cash and cash equivalents of $65.2 million and outstanding bank indebtedness of $157.0 million.
In addition, the Company announced a 20 per cent increase in the amount of its quarterly dividend and the initiation of a normal course issuer bid to repurchase shares. (AR)
