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PEMBROKE PINES, Fla., Aug 18, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Decorator Industries, Inc. (Amex: DII) today announced its operating results for the second quarter ended July 4, 2009.
Decorator Industries, a leading supplier of interior furnishings for the hospitality, manufactured housing ("MH") and recreational vehicle ("RV") industries, today reported a net loss of $366,181 or $0.12 per diluted share for the second quarter of fiscal 2009 compared with a net loss of $1,060,529 or $0.36 per diluted share in the second quarter of 2008. The net loss for the first six months of fiscal 2009 was $1,657,110 or $0.56 per diluted share compared with a net loss of $1,536,047 or $0.52 cents per diluted share for the same period a year ago. The second quarter 2009 loss included a pre-tax charge of $150,000 related to the scheduled consolidation of certain facilities and the impairment of assets compared to a pre-tax charge of $1,430,000 in the second quarter of 2008. The six months of 2009 included pre-tax charges of $900,000 compared to pre-tax charges of $1,430,000 in 2008.
Net sales for the second quarter of fiscal 2009 were $5,677,395, down 55% from $12,563,069 for the same period a year ago. Net sales for the second quarter of 2009 increased 11% over the first quarter of 2009. Net sales for the first six months of fiscal 2009 were $10,783,033 a decline of 53% from $23,066,967 in the first half of 2008.
Mr. Johnson, President, stated:
"Sales to our Hospitality customers decreased 41% to $3,244,000 in the second quarter of fiscal 2009 from $5,489,000 in the second quarter a year ago. For the first six months of 2009 Hospitality sales decreased by 29% to $6,197,000 compared with $8,782,000 in the first six months of 2008.
"Sales to our MH customers decreased 47% to $1,369,000 in the second quarter of fiscal 2009, compared with last years' second quarter sales of $2,571,000. For the six month period of fiscal 2009 our MH sales decreased by 46% to $2,669,000 compared with $4,962,000 for the same period a year ago. The Manufactured Housing Institute reported that industry shipments decreased about 44% from last year's second quarter and for the year. Housing shipments increased 16% during the second quarter of 2009 versus the first quarter of 2009.
"Sales to our RV customers decreased 76% to $1,064,000 in the second quarter of fiscal 2009, compared with last years' second quarter sales of $4,503,000. For the six month period of fiscal 2009 our RV sales decreased by 79% to $1,917,000 compared with $9,323,000 for the same period a year ago. The RV industry reported a 47% decline in total shipments from last year's second quarter, with towable shipments decreasing by 45% and motor home shipments decreasing by 66%. Total RV industry shipments for the six months of 2009 were down by 55%, with towable shipments decreasing 53% and motor home shipments decreasing 72%. RV shipments increased 39% during the second quarter of 2009 versus the first quarter of 2009, significantly higher than recent years seasonal increases. The Company's sales to the RV industry declined more than the overall market because two of the Company's major customers declared bankruptcy the first week of March 2009. In May 2009 we stopped manufacturing certain products for the RV industry we felt were no longer profitable after the loss of these two major customers. Going forward, we will focus our attention on the pleated shade and pleated door products where we have a history of being a market leader.
"The operating loss decreased to $599,697 or 10.6% of net sales in the second quarter of fiscal 2009 from $1,709,601 or 13.6% of net sales in the second quarter of 2008. The operating losses included one time charges of $150,000 in 2009 and $1,430,000 in 2008 related to the write off of impaired assets and consolidation of facilities. The second quarter of 2009 operating loss, net of one time charges, increased by $170,096 because of the significant reduction in sales volumes and loss of $97,714 recognized on the sale-leaseback transactions. The decrease in sales volume offset a $1,080,165 reduction in second quarter 2009 overhead costs compared to the second quarter of 2008.
"Selling and administrative expenses decreased to $1,830,651 in the second quarter of 2009 from $3,906,527 for the second quarter of 2008. The decrease of $795,876, excluding the one time charges of $150,000 in 2009 and $1,430,000 in 2008, came from reductions in employees, compensation, benefits, amortization of intangibles, commissions and bad debt expense.
"In May 2009, the company completed the sale-leaseback of two operating facilities netting $1,438,000 in proceeds. The company continues to market four idled facilities for sale in a further effort to improve our liquidity. Wachovia Bank, a Wells Fargo Company, extended our line of credit until September 30, 2009 and has indicated they will provide a series of six month forbearance agreements as we work our way back to profitability.
"We continue to face a challenging environment in all of our markets. We have made significant progress in right-sizing the business to successfully operate in the new environment as evidenced by the significant reduction in overheads. We believe the company is better positioned to ride out the storm and benefit greatly as the economy recovers. However, we know our work is not complete and we will continue to focus all of our efforts on looking for opportunities to grow the business while also reducing costs in an effort to return the company to profitability."
STATEMENTS CONTAINED IN THIS RELEASE THAT ARE NOT HISTORICAL FACTS ARE FORWARD-LOOKING STATEMENTS THAT COULD DIFFER MATERIALLY FROM ACTUAL RESULTS. PRIMARY FACTORS THAT COULD CAUSE ACTUAL RESULTS TO MATERIALLY DIFFER FROM THOSE IN THE FORWARD-LOOKING STATEMENTS ARE THE LEVEL OF DEMAND FOR RECREATIONAL VEHICLES, MANUFACTURED HOUSING AND HOTEL/MOTEL ACCOMMODATIONS, THE GENERAL ECONOMIC CONDITIONS, THE COMPANY'S ABILITY TO RETAIN OR REPLACE ITS LINE-OF-CREDIT, INTEREST RATE FLUCTUATIONS, THE AVAILABILITY OF CONSUMER CREDIT, FUEL PRICES, COMPETITIVE PRODUCTS AND PRICING PRESSURES WITHIN THE COMPANY'S MARKETS, THE COMPANY'S ABILITY TO CONTAIN ITS MANUFACTURING COSTS AND EXPENSES, AND OTHER FACTORS.
DECORATOR INDUSTRIES, INC., FOUNDED IN 1953, DESIGNS MANUFACTURES AND SELLS INTERIOR FURNISHING PRODUCTS, PRINCIPALLY DRAPERIES, CURTAINS, SHADES, BLINDS, VALANCE BOARDS, BEDSPREADS, COMFORTERS, PILLOWS, CUSHIONS AND TRAILER TENTS. DECORATOR IS A LEADING SUPPLIER TO THE MANUFACTURED HOUSING AND RECREATIONAL VEHICLE MARKETS AND IS A GROWING SUPPLIER TO THE LODGING INDUSTRY.
(DIIG)
THE UNAUDITED FIGURES ARE AS FOLLOWS
CONDENSED STATEMENT OF INCOME
FOR QUARTERS ENDED: FOR TWENTY SIX WEEKS ENDED:
------------------- ---------------------------
July 4, June 28, July 4, June 28,
2009 2008 2009 2008
------ ------- ------ -------
NET SALES $5,677,395 $12,563,069 $10,783,033 $23,066,967
COST OF
PRODUCTS SOLD 4,446,441 10,366,143 8,833,284 19,373,831
---------- ---------- ---------- ----------
GROSS PROFIT 1,230,954 2,196,926 1,949,749 3,693,136
SELLING AND
ADMINISTRATIVE
EXPENSES 1,830,651 3,906,527 4,319,641 6,160,603
---------- ---------- ---------- ----------
OPERATING LOSS (599,697) (1,709,601) (2,369,892) (2,467,467)
OTHER INCOME (EXPENSE)
Interest,
Investment and
Other Income 8,303 15,161 11,934 34,610
Interest Expense (32,787) (33,089) (69,152) (63,190)
---------- ---------- ---------- ----------
LOSS BEFORE
INCOME TAXES (624,181) (1,727,529) (2,427,110) (2,496,047)
PROVISION FOR
INCOME TAXES (258,000) (667,000) (770,000) (960,000)
---------- ---------- ---------- ----------
NET LOSS $(366,181) $(1,060,529) $(1,657,110) $(1,536,047)
---------- ---------- ---------- ----------
EARNINGS (LOSS)
PER SHARE:
BASIC $(0.12) $(0.36) $(0.56) $(0.52)
---------- ---------- ---------- ----------
DILUTED $(0.12) $(0.36) $(0.56) $(0.52)
---------- ---------- ---------- ----------
WEIGHTED-AVERAGE
NUMBER OF SHARES
OUTSTANDING
BASIC 2,987,495 2,928,299 2,970,528 2,932,427
DILUTED 2,987,495 2,928,299 2,970,528 2,932,427
CONDENSED BALANCE SHEET
July 4, 2009 January 3, 2009
------------ ---------------
CASH AND EQUIVALENTS $284,115 $16,499
ACCOUNTS RECEIVABLE 2,550,285 2,214,256
INVENTORIES 2,525,266 3,783,581
OTHER CURRENT ASSETS 515,717 524,879
----------- -----------
TOTAL CURRENT ASSETS 5,875,383 6,539,215
NET PROPERTY AND EQUIPMENT 6,632,074 8,570,067
OTHER ASSETS 5,926,170 5,037,527
----------- -----------
TOTAL ASSETS $18,433,627 $20,146,809
----------- -----------
TOTAL CURRENT LIABILITIES $6,078,264 $6,132,116
LONG-TERM DEBT 555,000 615,000
STOCKHOLDERS' EQUITY 11,800,363 13,399,693
----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $18,433,627 $20,146,809
----------- -----------
SOURCE Decorator Industries, Inc.
http://www.decoratorindustries.com
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