FOR IMMEDIATE RELEASE
ST. LOUIS, MISSOURI
April 8, 2008
Angelica Announces Fourth Quarter and Fiscal Year 2007 Results
St. Louis, Missouri (April 8, 2008) – Angelica Corporation (NYSE: AGL),
announced today financial results for its fourth quarter and fiscal
year 2007 ended January 26, 2008. In addition, the Company confirmed
that the closure and sale of its Edison, New Jersey facility was
completed in January, 2008. As noted below, Edison had a significant
negative impact on fiscal year 2007 results.
The Company also confirmed that its strategic alternatives review process, including a possible sale of the Company, continues.
Fourth Quarter Results, Three Months ended January 26, 2008
Revenues for the fourth quarter of fiscal 2007 were $105.8 million, up
0.1% from $105.7 million for the fourth quarter of fiscal 2006. Total
healthcare revenues increased 1.7% while non-healthcare revenues
declined due to prior divestiture of non-healthcare accounts. Fourth
quarter fiscal 2007 revenues from the closed Edison service center were
$1.5 million versus $3.8 million in fourth quarter fiscal year 2006.
Gross profit for the fourth quarter of fiscal 2007 was $13.9 million,
down 5.9% from $14.8 million in the fourth quarter of fiscal 2006.
Gross margin for the fourth quarter of fiscal 2007 was 13.1%, down from
14.0% in the fourth quarter of fiscal 2006. The decline in gross margin
was related to operational difficulties in the Edison, New Jersey
service center. Gross profit for the fourth quarter of fiscal 2007 for
the closed Edison service center was a loss of ($3.5 million) versus a
loss of ($1.3 million) in the fourth quarter of fiscal 2006. Excluding
the Edison service center in both years, gross margin in fourth quarter
of fiscal 2007 was 16.7% versus 15.8% in the fourth quarter of fiscal
2006.
SG&A expenses for the fourth quarter of fiscal 2007 were $11.2
million, up from $10.1 million in the fourth quarter of fiscal 2006. As
a percentage of revenue, SG&A was 10.5% in the fourth quarter of
fiscal 2007 versus 9.5% in the fourth quarter of fiscal 2006. SG&A
in the fourth quarter of fiscal 2007 included $0.4 million of expenses
related to the strategic alternatives review process.
Net income for the fourth quarter of fiscal 2007 was $1.9 million
versus net income of $3.3 million in the fourth quarter of fiscal 2006.
Net income per share was $0.20 in the fourth quarter of fiscal 2007
versus $0.35 in the fourth quarter of fiscal 2006. Net income in the
fourth quarter of fiscal 2007 included a gain on the sale of the Edison
property of $2.3 million in other operating income. Net income in the
fourth quarter of fiscal 2006 included a $1.7 million gain in
non-operating income related to the sale of an unused property.
Fiscal Year 2007 Results, Twelve Months ended January 26, 2008
For
the fiscal year ended January 26, 2008, revenues were $430.0 million,
up 1.0% from $425.7 million for fiscal 2006. Total healthcare revenues
increased 2.5% while non-healthcare revenues declined due to the prior
divestiture of non-healthcare accounts. Organic revenue growth,
excluding the impact of acquisitions and divestitures, was 1.2%,
achieved from pricing improvements offsetting a unit volume decline.
Edison revenues were $12.4 million in fiscal 2007 versus $14.1 million
in fiscal 2006.
Gross profit for fiscal 2007 was $58.4 million, down 5.7% from $61.9 million in fiscal 2006. Gross margin for fiscal 2007 was 13.6%, down from 14.5% in fiscal 2006. The decline in gross margin was related to operational difficulties in the Edison, New Jersey service center. Gross profit for fiscal 2007 for the closed Edison service center was a loss of ($8.1 million) versus a loss of ($3.3 million) in fiscal 2006. Excluding the Edison service center in both years, gross margin for fiscal 2007 and fiscal 2006 was 15.9%.
SG&A expenses for fiscal 2007 were $49.1 million, down 4.3% from $51.3 million in fiscal 2006. As a percentage of revenue, SG&A declined to 11.4% in fiscal 2007 from 12.1% in fiscal 2006. Fiscal 2007 SG&A expenses included $.4 million of expenses related to the strategic alternatives review process.
Net income for fiscal 2007 was $3.9 million versus $3.6 million for fiscal 2006. Net income per share was $0.42 in fiscal 2007 versus $0.39 for fiscal 2006. Fiscal year 2007 had $2.3 million more in tax credits than fiscal 2006 while fiscal 2006 had $1.1 million more in non-operating income than fiscal 2007.
Commenting on the results, Steve O’Hara, president and chief executive officer, stated, “We are pleased by the improvement in the fourth quarter excluding our Edison facility and are pleased to report the Edison operation is closed and fully accounted for in fiscal 2007 results. We believe the improvements in our fourth quarter gross margin excluding the Edison facility’s impact highlights the progress we are making to improve operational efficiencies. Moreover, if we exclude Edison results from both fiscal years 2007 and 2006, income from operations increased 20.0%.”
Angelica Corporation, traded on the New York Stock Exchange under the symbol AGL, is a leading provider of textile rental and linen management services to the U.S. healthcare market. More information about Angelica is available on its website, www.angelica.com.
Forward-Looking Statements
Any forward-looking statements made in this document reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These potential risks and uncertainties include, but are not limited to, competitive and general economic conditions, the ability to retain current customers and to add new customers in competitive market environments, competitive pricing in the marketplace, delays in the shipment of orders, availability of labor at appropriate rates, availability and cost of energy and water supplies, the cost of workers' compensation and healthcare benefits, the ability to attract and retain key personnel, the ability of the Company to recover its seller note and avoid future lease obligations as part of its sale of Life Uniform, the ability of the Company to execute its strategy of providing delightful service to every customer every day pursuant to its fiscal 2005 reorganization, unusual or unexpected cash needs for operations or capital transactions, the effectiveness of the Company’s initiatives to reduce key operating costs as a percent of revenues, the ability to obtain financing in required amounts and at appropriate rates and terms, the ability to identify, negotiate, fund, consummate and integrate acquisitions, unfavorable consequences of the Company’s current strategic alternatives review process, and other factors which may be identified in the Company's filings with the Securities and Exchange Commission.
Link to Quarter 4 Financials (PDF)
For additional information contact:
| JIM SHAFFER |
DEVLIN LANDER |
| CHIEF FINANCIAL OFFICER |
INTEGRATED CORPORATE RELATIONS, INC. |
| (314) 854-3800 |
(415) 292-6855 |
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