MOUNT GILEAD, N.C., McRae Industries, Inc. (Pink Sheets: MCRAA and MCRAB) reported consolidated net revenues for the second quarter of fiscal 2022 of $31,426,000 as compared to $20,239,000 for the second quarter of fiscal 2021.
Net earnings for the second quarter of fiscal 2022 amounted to $2,536,000, or $1.12 per diluted Class A common share as compared to $728,000, or $0.32 per diluted Class A common share, for the second quarter of fiscal 2021.
Consolidated net revenues for the first six months of fiscal 2022 totaled $59,014,000 as compared to $39,178,000 for the first six months of fiscal 2021. Net earnings for the first six months of fiscal 2022 amounted to $4,758,000, or $2.11 per diluted Class A common share, as compared to net earnings of $1,222,000, or $0.53 per diluted Class A common share, for the first six months of fiscal 2021.
SECOND QUARTER FISCAL 2022 COMPARED TO SECOND QUARTER FISCAL 2021
Consolidated net revenues totaled $31.4 million for the second quarter of fiscal 2022 as compared to $20.2 million for the second quarter of fiscal 2021. Sales related to our western/lifestyle boot products for the second quarter of fiscal 2022 totaled $23.5 million as compared to $13.7 million for the second quarter of fiscal 2021. This increase in net revenues was seen across the board for all product lines, as the demand for western boots continues to grow because of fashion and lifestyle influences in the market place. Revenues from our work boot products increased from $6.5 million for the second quarter of fiscal 2021 to $7.0 million for the second quarter of fiscal 2022. This was primarily a result of increased military and Dan Post work boot sales.
Consolidated gross profit for the second quarter of fiscal 2022 amounted to approximately $9.2 million as compared to $5.6 million for the second quarter of fiscal 2021. Gross profit, as a percentage of net revenues, was up from 27.5% for the second quarter of fiscal 2021 to 29.1% for the second quarter of fiscal 2022. This is primarily due to our lower margin military boot sales making up a smaller percentage of total sales, in addition to better margins on closeout sales.
Consolidated selling, general and administrative expenses totaled approximately $5.7 million for the second quarter of fiscal 2022 as compared to $4.8 million for the second quarter of fiscal 2021. This increase resulted primarily from increased commissions.
As a result of the above, the consolidated operating profit for the second quarter of fiscal 2022 amounted to $3.43 million as compared to $0.81 million for the second quarter of fiscal 2021.
FIRST SIX MONTHS FISCAL 2022 COMPARED TO FIRST SIX MONTHS FISCAL 2021
Consolidated net revenues for the first six months of fiscal 2022 totaled $59.0 million as compared to $39.2 million for the first six months of fiscal 2021. Our western and lifestyle product sales totaled $43.4 million for the first six months of fiscal 2022 as compared to $25.8 million for the first six months of fiscal 2021. Consistent with the quarter, this increase in net revenues was seen across the board for all product lines. Net revenues from our work boot business increased from $13.4 million for the first six months of fiscal 2021 to $14.2 million for the first six months of fiscal 2022. This increase resulted primarily from an increase in our Dan Post work boot sales.
Consolidated gross profit totaled $17.1 million, or 29.0%, for the first six months of fiscal 2022 as compared to $10.6 million, or 27.1%, for the first six months of fiscal 2021. Consistent with the quarter, this is primarily due to our lower margin military boot sales making up a smaller percentage of total sales, in addition to better margins on closeout sales.
Consolidated selling, general and administrative expenses totaled approximately $10.9 million for the first six months of fiscal 2022 as compared to $9.1 million for the first six months of fiscal 2021. This increase resulted primarily from increased commissions.
As a result of the above, the consolidated operating profit amounted to $6.3 million for the first six months of fiscal 2022 as compared to $1.5 million for the first six months of fiscal 2021.
Financial Condition and Liquidity
Our financial condition remained strong at January 29, 2022 as cash and cash equivalents totaled $15.1 million as compared to $23.5 million at July 31, 2021. Our working capital increased from $58.0 million at July 31, 2021 to $62.7 million at January 29, 2022.
We currently have two lines of credit totaling $6.75 million, all of which was fully available at January 29, 2022. 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 2023. Our $5.0 million line of credit, which also expires in January 2023, is secured by the inventory and accounts receivable of our Dan Post Boot Company subsidiary.
For the first six months of fiscal 2022, operating activities used approximately $10.0 million of cash. Net earnings, as adjusted for depreciation, contributed approximately $5.3 million of cash. Increased inventory, accounts receivable, and other assets used approximately $16.0 million of cash. Decreased accounts payable and other accrued liabilities provided approximately $0.9 million of cash.
Net cash provided by investing activities totaled approximately $2.2 million. The sale of securities offset by the purchase of securities provided approximately $1.9 million and the sale of land provided approximately $0.6 million.
Net cash used in financing activities totaled $0.6 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 2022.
This article was shared with Prittle Prattle News as a Press Release by PRNewswire.
