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CPAC enjoys stock increase despite lower Q2 sales

Despite a decline in second-quarter sales, CPAC Inc.’s stock rose more than 1 percent on Wednesday.
At 2 p.m., the company’s shares (NasdaqNM:CPAK) were trading at $5.10, up 1.6 percent from Tuesday’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 company’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 firm’s locations delivered strong sales performances, said Thomas Hendrickson, CPAC’s president and CEO.
“Increases 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,” Hendrickson said. “Our continued dividend underscores our belief that our fiscal restraint during our restructuring period will soon be reflected in increased profits going forward.”
The company’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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