McRAE INDUSTRIES, INC. REPORTS EARNINGS FOR THE SECOND QUARTER AND FIRST SIX MONTHS OF FISCAL 2024
Consolidated net revenues for the first six months of fiscal 2024 totaled
SECOND QUARTER FISCAL 2024 COMPARED TO SECOND QUARTER FISCAL 2023
Consolidated net revenues totaled
Consolidated gross profit for the second quarter of fiscal 2024 amounted to approximately
Consolidated selling, general and administrative expenses totaled approximately
As a result of the above, the consolidated operating profit for the second quarter of fiscal 2024 amounted to
FIRST SIX MONTHS FISCAL 2024 COMPARED TO FIRST SIX MONTHS FISCAL 2023
Consolidated net revenues for the first six months of fiscal 2024 totaled
Consolidated gross profit totaled
Consolidated selling, general and administrative expenses totaled approximately
As a result of the above, the consolidated operating profit amounted to
On
Financial Condition and Liquidity
Our financial condition remained strong as cash and cash equivalents remained consistent at
We currently have two lines of credit totaling
For the first six months of fiscal 2024, operating activities provided approximately
Net cash used by investing activities totaled approximately
Net cash used in financing activities totaled
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.
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CONSOLIDATED BALANCE SHEETS |
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(In thousands, except share data) |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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Equity investments |
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6,713 |
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6,459 |
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Debt securities |
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23,531 |
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15,047 |
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Accounts receivable, net |
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16,170 |
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19,880 |
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Inventories, net |
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19,797 |
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21,914 |
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Income tax receivable |
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138 |
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370 |
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Prepaid expenses and other current assets |
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598 |
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317 |
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Total current assets |
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85,221 |
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82,316 |
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Property and equipment, net |
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4,734 |
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4,917 |
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Other assets: |
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Deposits |
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13 |
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14 |
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Right to Use Asset |
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2,136 |
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2,362 |
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Real estate held for investment |
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2,848 |
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3,036 |
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Trademarks |
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2,824 |
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2,824 |
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Total other assets |
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7,821 |
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8,236 |
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Total assets |
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CONSOLIDATED BALANCE SHEETS |
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(In thousands, except share data) |
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(Unaudited) |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
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Accrued employee benefits |
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566 |
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1,783 |
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Accrued payroll and payroll taxes |
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948 |
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1,293 |
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Lease liability |
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429 |
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429 |
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Other |
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945 |
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878 |
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Total current liabilities |
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6,189 |
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6,505 |
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Lease liability |
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1,707 |
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1,933 |
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Deferred tax liabilities |
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114 |
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114 |
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Total liabilities |
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8,010 |
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8,552 |
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Shareholders' equity: |
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Common Stock: |
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Class A, |
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1,896 |
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1,896 |
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Class B, |
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364 |
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364 |
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Retained earnings |
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87,506 |
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84,657 |
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Total shareholders' equity |
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89,766 |
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86,917 |
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Total liabilities and shareholders' equity |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(In thousands, except share data) |
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(Unaudited) |
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Three Months Ended |
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Six Months Ended |
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2024 |
2023 |
2024 |
2023 |
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Net revenues |
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Cost of revenues |
18,816 |
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22,788 |
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41,733 |
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46,277 |
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Gross profit |
6,999 |
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7,981 |
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16,908 |
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18,275 |
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Selling, general and administrative expenses |
5,580 |
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6,134 |
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11,583 |
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12,180 |
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Operating profit |
1,419 |
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1,847 |
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5,325 |
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6,095 |
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Other income |
852 |
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456 |
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916 |
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267 |
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Earnings before income taxes |
2,271 |
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2,303 |
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6,241 |
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6,362 |
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Provision for income taxes |
635 |
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574 |
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1,383 |
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1,776 |
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Net earnings |
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Earnings per common share: |
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Diluted earnings per share: |
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Class A |
0.72 |
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0.76 |
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2.15 |
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2.03 |
Class B |
NA |
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NA |
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NA |
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NA |
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Weighted average number of common shares outstanding: |
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Class A |
1,896,334 |
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1,895,062 |
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1,896,277 |
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1,895,049 |
Class B |
363,826 |
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365,098 |
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363,883 |
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365,111 |
Total |
2,260,160 |
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2,260,160 |
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2,260,160 |
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2,260,160 |
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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY |
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(In thousands, except share data) |
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(Unaudited) |
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Common Stock, |
Accumulated Other |
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Class A |
Class B |
Comprehensive |
Retained |
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Shares |
Amount |
Shares |
Amount |
Income (Loss) |
Earnings |
Balance, |
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1,895,035 |
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365,125 |
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Cash Dividend ( |
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(265) |
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Cash Dividend ( |
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(51) |
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Net earnings |
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2,857 |
Balance, |
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1,895,035 |
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365,125 |
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Conversion of Class B |
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100 |
- |
(100) |
- |
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- |
to Class A Stock |
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Cash Dividend ( |
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(1,212) |
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Cash Dividend ( |
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(233) |
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Net earnings |
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1,729 |
Balance, |
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1,895,135 |
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365,025 |
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Common Stock, |
Accumulated Other |
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Class A |
Class B |
Comprehensive |
Retained |
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Shares |
Amount |
Shares |
Amount |
Income (Loss) |
Earnings |
Balance, |
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1,895,949 |
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364,211 |
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Conversion of Class B |
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385 |
- |
(385) |
- |
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to Class A Stock |
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Cash Dividend ( |
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(265) |
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Cash Dividend ( |
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(51) |
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Net earnings |
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3,222 |
Balance, |
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1,896,334 |
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363,826 |
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Cash Dividend ( |
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(1,421) |
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Cash Dividend ( |
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(272) |
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Net earnings |
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1,636 |
Balance, |
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1,896,334 |
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363,826 |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(In thousands) |
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(Unaudited) |
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Six Months Ended |
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2024 |
2023 |
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Cash Flows from Operating Activities: |
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Net earnings |
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Adjustments to reconcile net earnings to net cash |
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3,584 |
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(1,960) |
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Net cash provided by operating activities |
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8,442 |
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2,626 |
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Cash Flows from Investing Activities: |
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Proceeds from sale of land |
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1,985 |
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- |
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Capital expenditures |
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(143) |
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(594) |
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Purchase of securities |
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(19,011) |
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(246) |
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Proceeds from sale of securities |
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10,681 |
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10 |
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Net cash used in investing activities |
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(6,488) |
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(830) |
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Cash Flows from Financing Activities: |
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Dividends paid |
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(2,009) |
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(1,761) |
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Net cash used in financing activities |
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(2,009) |
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(1,761) |
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Net (Decrease) Increase in Cash and Cash equivalents |
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(55) |
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35 |
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Cash and Cash Equivalents at Beginning of Year |
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18,329 |
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15,315 |
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Cash and Cash Equivalents at End of Period |
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View original content:https://www.prnewswire.com/news-releases/mcrae-industries-inc-reports-earnings-for-the-second-quarter-and-first-six-months-of-fiscal-2024-302096429.html
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