Q: Please comment on earning. Thanks a lot.
5i Research Answer:
EPS of 27c missed estimates of 30c; revenue of $406.8M matched estimates. EBITDA of $40.4M missed estimates by 4.8%. Net income fell 31% as the company continues to hold inventories that are selling below cost, lowering margins. EPS fell from 40c last year. EBITDA margin was 9.9% vs 12.2%. Sales rose 1%. US sales rose, Canadian sales declined. RCH expects the inventory/margin situation to resolve as new products are ordered. But, still a bit disappointing here, especially the weak revenue growth.