AEP Industries net sales increased 4%
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The increase was the result of a 6% increase in average selling prices partially offset by a 1% decrease in sales volume compared to the prior year. The decrease in sales volume is primarily the result of the challenging economic conditions in recent years and the unprecedented six price increases totaling $0.23 per pound in polyethylene resin since November 1, 2012.
Gross profit for fiscal 2014 was $121.9 million, a decrease of $32.6 million, or 21%, compared to the prior fiscal year. Excluding the impact of the LIFO reserve change of $6.3 million during the periods and an increase in depreciation expense of $3.1 million, gross profit decreased $35.8 million.
Operating expenses for fiscal 2014 were $113.9 million, a decrease of $7.2 million, or 6%, compared to the prior fiscal year.
Operating expenses for fiscal 2014 were $113.9 million.
The Company filed a business interruption claim related to the lost margins from this incident. During the third quarter of 2014, the Company collected $2,050,000 in business interruption recoveries, which is recorded as a component of operating income in the consolidated statement of operations for the fiscal year ended October 31, 2014.
Net income for fiscal 2014 was a loss of $5.5 million, or $1.03 per diluted share, as compared to net income of $10.7 million, or $1.92 per diluted share in fiscal 2013. Fiscal 2013 included a gain on bargain purchase of the Transco business of $1.0 million. Adjusted EBITDA was $46.1 million in fiscal 2014 as compared to $75.9 million in fiscal 2013. ■