ATLANTA -- Zep Inc. has announced financial results for the three- and six-month periods ended Feb. 28, 2010. The company reported net income during the quarter of $0.7 million, or 3 cents per diluted share, which included $1.3 million, or 6 cents per diluted share, of certain expenditures and charges related to its acquisition of Amrep Inc.

The company reported a net loss in the second quarter of the prior year of $0.9 million, or 4 cents per diluted share, which included $0.7 million, or 3 cents per diluted share, of charges related to the company’s restructuring efforts.
 
Net sales totaled $127.4 million in the second quarter of fiscal 2010 compared with $114.6 million in the second quarter of fiscal 2009, representing an increase of $12.7 million or 11.1 percent. Revenues recognized in January and February from the Amrep acquisition accounted for $17.8 million of the current quarter's net sales. Excluding Amrep revenues, weak demand across the majority of the company’s end-markets resulted in $8.1 million of volume declines. Selling prices remained consistent during the comparative periods, and foreign currency translation on international sales favorably impacted total net sales by $3 million.

John Morgan, chairman, president and chief executive officer, stated, “Efforts to reduce the breakeven point of the business by more than 20 percent over the past year continued to positively impact our business during our second fiscal quarter, which is traditionally our weakest quarter due in part to a reduced number of selling days. The company performed well despite the continued impact of what many economists view as the worst economic period in decades. During the second quarter, the company continued to make significant progress on each of its stated strategic initiatives. I am particularly pleased with the Amrep acquisition, which has already proven accretive to earnings.”