McRae Industries, Inc. Reports Earnings For The Third Quarter And First Nine Months Of Fiscal 2020.

MOUNT GILEAD, N.C: McRae Industries, Inc. (Pink Sheets: MCRAA and MCRAB) reported consolidated net revenues for the third quarter of fiscal 2020 ending on May 2, 2020 of $14,292,000 as compared to $18,606,000 for the third quarter of fiscal 2019. The company experienced a net loss for the third quarter of fiscal 2020 in the amount of $504,000, or ($0.22) per diluted Class A common share as compared to net earnings of $386,000, or $0.16 per diluted Class A common share, for the third quarter of fiscal 2019.

Consolidated net revenues for the first nine months of fiscal 2020 totaled $57,291,000 as compared to $59,945,000 for the first nine months of fiscal 2019. Net earnings for the first nine months of fiscal 2020 amounted to $1,063,000, or $0.45 per diluted Class A common share, as compared to net earnings of $1,310,000, or $0.55 per diluted Class A common share, for the first nine months of fiscal 2019.

THIRD QUARTER FISCAL 2020 COMPARED TO THIRD QUARTER FISCAL 2019

Consolidated net revenues totaled $14.3 million for the third quarter of fiscal 2020 as compared to $18.6 million for the third quarter of fiscal 2019. Sales related to our western/lifestyle boot products were $6.5 million for the third quarter of fiscal 2020 as compared to $9.6 million for the third quarter of fiscal 2019. This was primarily driven by a decline across all brands due to the coronavirus pandemic, which especially had an impact on our popular priced western boots sales. Revenues from our work boot products decreased from $8.8 million for the third quarter of fiscal 2019 to $7.6 million for the third quarter of fiscal 2020. This was primarily a result of decreased sales in our military boots and the John Deere brand, offset by an increase in our Dan Post brand.

Consolidated gross profit for the third quarter of fiscal 2020 amounted to approximately $2.7 million as compared to $4.2 million for the third quarter of fiscal 2019. This drop was driven by the decline in sales, as well as the production inefficiencies created by the coronavirus and increased healthcare cost.

Consolidated selling, general and administrative ("SG&A") expenses have decreased from $3.8 million for the third quarter of fiscal 2019 to $3.4 million for the third quarter of fiscal 2020. This resulted from lower commissions, as well as decreased spending on travel and entertainment.

As a result of the above, the consolidated operating loss for the third quarter of fiscal 2020 amounted to $0.7...