|To:||Senior Management Team|
While Widget Inc.'s West and North Sales remained relatively steady, Eastern Sales dropped precipitously to normal levels in Q4 after last quarter's stellar growth due to inflationary pressures and increased demand. Year-Over-Year Performance was excellent in all regions. Overall growth in sales for all regions topped 32%. (East - 14%; West - 42%; North - 41%).
Margins also increased Year-Over-Year as 13% of Sales fell to the bottom line (compared to 11% last year). The increase in margins was mainly due the operating efficiencies achieved through the consolidation of distribution centers. Last quarter, 13 distribution centers were consolidated into 3 regional "super-centers". The disposal of the 10 distribution centers resulted in $3 million in cash and a long-term gain on assets of $1.8 million.
We are expecting sales next quarter to increase across the board as seasonality and increased demand due to competitive weakness act as key factors in top-line growth. In addition, increased advertising expenditures will have a positive effect. Overall, we are extremely happy with our results and confident that all future expectations with regard to top line growth will be met.