USPS Ends Third Quarter FY23 with an Average of 2.5 Days to Deliver

First Quarter Results Overview - The comparisons refer to operating results for the first quarter of fiscal 2021 versus the first quarter of fiscal 2020 ended May 2, 2020: *Total net sales were $163.2 million, a record for a first quarter, which represented an increase of $85.9 million or 111.1%, compared to $77.3 million last year. *Gross profit was $54.8 million, or 33.6% of net sales, compared to $1.6 million, or 2.1% of net sales, last year. *Operating income improved to $14.9 million, or 9.1% of net sales, compared to an operating loss of $(28.4) million, or (36.7)% of net sales, last year as a result of the combined impact of the factors described above. *Net income improved to $11.0 million, or $0.36 per diluted share, records for a first quarter since the Company became publicly-traded, compared to a net loss of $(17.4) million, or $(0.59) per share, last year. Weighted average shares were 30.5 million this year compared to 29.7 million last year.

Meredith Corp. doesn't just publish magazines. It manufactures them. That was the conclusion of a three-year legal battle that ended last week when attorneys for the U.S. Department of Justice dropped an appeal against Meredith. The conclusion of the civil lawsuit clears the path for the Des Moines-based publisher of titles such as Better Homes and Gardens, People, Magnolia and Southern Living to collect a $12.2 million tax deduction. At issue was whether Meredith is technically a manufacturer, which would qualify the company for the tax break, which is designed to keep production jobs in the U.S. Although it does not print its magazines, Meredith argued it broadly fits the description of a manufacturer because of all the other work it does to make the product.

Sales increased 3% to $302.8 million, compared to $293.6 million during the same period last year. As previously disclosed, our 2023 results were impacted by the stop sale of certain soft coolers included in the voluntary recalls. Gross profit increased 5% to $161.9 million, or 53.5% of sales, compared to $154.9 million, or 52.7% of sales, in the first quarter of 2022. Gross profit was positively impacted by lower inbound freight, partially offset by higher product costs and the unfavorable impact of foreign currency exchange rates. Gross profit also included a $1.2 million, or 40 basis points, favorable impact from adjustments to inventory reserves related to the voluntary recalls. Net income decreased 59% to $10.6 million, or 3.5% of sales, compared to $25.7 million, or 8.7% of sales in the prior year quarter.