The Navarre Corp. is reporting a record first quarter. The Minneapolis-based distributor/publisher turned in a profit of $4.5 million, or 16 cents per diluted share, on sales of $126.7 million, for th

The Navarre Corp. is reporting a record first quarter. The Minneapolis-based distributor/publisher turned in a profit of $4.5 million, or 16 cents per diluted share, on sales of $126.7 million, for the three months ended June 30.

The sales total represents a 73% increase over the $73.1 million the company garnered in the first quarter of last year, when net income was only $308,000, or 1 cent per share.

VP/CFO Jim Gilbertson says a good portion of the growth came from the publishing side, with the acquisition of Encore Software and BCI Enterprises. Last year, publishing volume was $4.6 million. This year, it was $30 million before the elimination of intercompany sales.

In addition to increases in profits and sales, the company's operating expenses dropped from 13.4% to 11.4% of revenue during the quarter.

During the period, Navarre established a $20 million revolving credit facility for acquisitions with GE Commercial Finance. Gilbertson says the company is in the market for more publishing concerns.

The acquisition facility is in addition to a $40 million revolving credit facility for operations.

Currently, Navarre does not have any funds drawn down from the revolver, since it has been funding operations from cashflow.

The stock closed today (July 22) at $14.99, down 46 cents from the previous day's close.