Despite a decline in second-quarter sales, CPAC Inc.â€™s stock rose Wednesday. Shares were trading at $5.10 midday, up 1.6 percent from Tuesdayâ€™s close of $5.02.
CPAC enjoys stock increase despite lower Q2 sales
Despite a decline in second-quarter sales, CPAC Inc.â€™s stock rose more than 1 percent on Wednesday.
At 2 p.m., the companyâ€™s shares (NasdaqNM:CPAK) were trading at $5.10, up 1.6 percent from Tuesdayâ€™s close of $5.02.
CPAC reported a 5.3 percent decline in net sales for the second quarter, from $23.5 million a year ago to $22.3 million. Net income for the quarter was $207,000, or 4 cents a share, versus a net loss of $136,000, or 3 cents a share, last year.
For the six months that ended Sept. 30, the companyâ€™s net sales were $44.4 million, down 5 percent from the same period last year. Net income for that period was $339,000, or 7 cents a diluted share, compared with $187,000, or 4 cents a share.
Although consolidated revenues were down from last year, some of the firmâ€™s locations delivered strong sales performances, said Thomas Hendrickson, CPACâ€™s president and CEO.
â€œIncreases in net income for the quarter and six-month periods reflect continued cost control initiatives in both segments, in addition to improvements in gross margins,â€ Hendrickson said. â€œOur continued dividend underscores our belief that our fiscal restraint during our restructuring period will soon be reflected in increased profits going forward.â€
The companyâ€™s Fuller Brands segment posted $13.6 million in second-quarter sales, the same as last year. Its imaging segment declined 13 percent to $8.7 million, including the impact of currency.
CPAC declared a quarterly cash dividend of 7 cents a share, payable on Dec.17, to shareholders of record on Nov. 24, officials said.
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