MOUNT GILEAD, N.C., June 12, 2024 /PRNewswire/ -- McRae Industries, Inc. (Pink Sheets: MCRAA and MCRAB) reported consolidated net revenues for the third quarter of fiscal 2024 of $29,436,000 as compared to $31,508,000 for the third quarter of fiscal 2023. Net earnings for the third quarter of fiscal 2024 amounted to $2,051,000, or $0.91 per diluted Class A common share as compared to $2,084,000, or $0.92 per diluted Class A common share, for the third quarter of fiscal 2023. Consolidated net revenues for the first nine months of fiscal 2024 totaled $88,077,000 as compared to $96,060,000 for the first nine months of fiscal 2023. Net earnings for the first nine months of fiscal 2024 amounted to $6,909,000, or $3.06 per diluted Class A common share, as compared to net earnings of $6,670,000, or $2.94 per diluted Class A common share, for the first nine months of fiscal 2023. THIRD QUARTER FISCAL 2024 COMPARED TO THIRD QUARTER FISCAL 2023 Consolidated net revenues totaled $29.4 million for the third quarter of fiscal 2024 as compared to $31.5 million for the third quarter of fiscal 2023. Sales related to our western/lifestyle boot products for the third quarter of fiscal 2024 totaled $18.9 million as compared to $23.2 million for the third quarter of fiscal 2023.  This decrease in net revenues was spread across several western product lines and offset by an increase in our Dingo fashion brand.  Revenues from our work boot products increased from $8.7 million for the third quarter of fiscal 2023 to $10.9 million for the third quarter of fiscal 2024. This was primarily a result of increased military boot sales. Consolidated gross profit for the third quarter of fiscal 2024 amounted to approximately $8.0 million as compared to $8.7 million for the third quarter of fiscal 2023. Gross profit, as a percentage of net revenues, remained relatively consistent at 27.7% for the third quarter of fiscal 2023 and 27.2% for the third quarter of fiscal 2024. Consolidated selling, general and administrative expenses totaled approximately $5.7 million for the third quarter of fiscal 2024 as compared to $5.9 million for the third quarter of fiscal 2023. This decrease resulted primarily from decreased commissions and employee related expenses. As a result of the above, the consolidated operating profit for the third quarter of fiscal 2024 amounted to $2.3 million as compared to $2.8 million for the third quarter of fiscal 2023. FIRST NINE MONTHS FISCAL 2024 COMPARED TO FIRST NINE MONTHS FISCAL 2023 Consolidated net revenues for the first nine months of fiscal 2024 totaled $88.1 million as compared to $96.1 million for the first nine months of fiscal 2023. Our western and lifestyle product sales totaled $59.1 million for the first nine months of fiscal 2024 as compared to $72.7 million for the first nine months of fiscal 2023. Net revenues from our work boot business increased from $23.8 million for the first nine months of fiscal 2023 to $28.1 million for the first nine months of fiscal 2024. This was primarily a result of increased military boot sales offset by decreased Dan Post work boot sales. Consolidated gross profit totaled $24.9 million, or 28.3%, for the first nine months of fiscal 2024 as compared to $27.0 million, or 28.1%, for the first nine months of fiscal 2023.  Consolidated selling, general and administrative expenses totaled approximately $17.3 million for the first nine months of fiscal 2024 as compared to $18.1 million for the first nine months of fiscal 2023. This decrease resulted primarily from decreased commissions and employee related expenses. As a result of the above, the consolidated operating profit amounted to $7.6 million for the first nine months of fiscal 2024 as compared to $8.9 million for the first nine months of fiscal 2023. On May 17, 2024, the company, through our affiliate American Mortgage and Investment Company and wholly owned subsidiary Hoke Development Company, closed on the sale of approximately 262 acres in Berkeley Country Club located in Berkeley County, South Carolina to Berkeley Conservation Group LLC for a sales price of $2,650,000. Financial Condition and Liquidity Our financial condition remained strong at April 27, 2024 as cash and cash equivalents totaled $19.6 million as compared to $18.3 million at July 29, 2023. Our working capital increased from $75.8 million at July 29, 2023 to $80.1 million at April 27, 2024. We currently have two lines of credit totaling $6.75 million, all of which was fully available at April 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 nine months of fiscal 2024, operating activities provided approximately $8.4 million of cash. Net earnings, as adjusted for depreciation and other non-cash items, contributed approximately $5.0 million of cash. Increased employee benefits and other payables used approximately $1.4 million of cash. Decreased accounts receivable and inventory provided approximately $4.0 million of cash. Net cash used by investing activities totaled approximately $4.8 million, primarily due to the purchase of securities, offset by the sale of land and securities. Net cash used in financing activities totaled $2.3 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: 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) April 27,2024 July 29,2023 ASSETS Current assets: Cash and cash equivalents $19,632 $18,329 Equity investments 6,803 6,459 Debt securities 21,150 15,047 Accounts receivable, net 17,332 19,880 Inventories, net 20,492 21,914 Income tax receivable 19 370 Prepaid expenses and other current assets 381 317 Total current assets 85,809 82,316 Property and equipment, net 5,182 4,917 Other assets: Deposits 14 14 Right to Use Asset 2,031 2,362 Real estate held for investment 3,019 3,036 Trademarks 2,824 2,824 Total other assets 7,888 8,236 Total assets $98,879 $95,469   McRae Industries, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) April 27,2024 July 29,2023 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $2,575 $2,122 Accrued employee benefits 756 1,783 Accrued payroll and payroll taxes 923 1,293 Lease liability 429 429 Other 979 878 Total current liabilities 5,662 6,505 Lease liability 1,602 1,933 Deferred tax liabilities 114 114 Total liabilities