The work we have done in fiscal 2012 built momentum for fiscal 2013. As a result, I am confident that we have the right strategy, the right business model, and importantly, the right people to deliver continually improving results.
- Our diversification strategy is enabling our customers to purchase our high-efficacy products where, when and how the customer desires, which means making our products increasingly available.
- Our acquisition strategy has served us well in accomplishing this objective – we are gaining access to the right channels to better serve our customers.
- We now have solid business platforms capable of generating organic sales growth, giving us the right set of competitive strengths to be a more significant leader in our industry.
During fiscal 2012, we reached several milestones. While revenues were tough to come by in the current economic environment, our team’s ability to manage the business in a tough economic environment was evident.
- We drove strong organic revenue growth from our acquired platforms by taking specific actions both during integration and in ongoing operations, helping us to achieve record sales of $654 million for the year.
- Strong operational management and accomplishments by our acquisition and integration teams drove significant bottom line results, leading to record EPS of $0.98 per share, up 26% from last year.
- Importantly, these actions delivered a 13% increase in EBITDA to $54 million.
As we began fiscal 2013, we moved to significantly augment our transportation offering through our planned acquisition of Ecolab’s Vehicle Care division. This transaction is a perfect strategic fit for Zep Inc. – it builds upon our core transportation business and delivers an expanded offering of leading brands and services to customers the way they want to be served.
In the coming year, you can expect us to continue to thoughtfully manage the business while being mindful that we expect economic conditions to remain challenging. I am confident that we have the right strategy, the right business model, and importantly, the right people to deliver continually improving results.
Sincerely,
John K. Morgan
Chairman, President and Chief Executive Officer