PEMBROKE PINES, Fla.,
May 17 /PRNewswire-FirstCall/ --
Decorator Industries, Inc. (NYSE Amex: DII) today announced its
operating results for the first quarter ended April 03, 2010.
Decorator Industries, Inc. (NYSE Amex: DII), a leading supplier
of interior furnishings for the hospitality, healthcare,
manufactured housing ("MH") and recreational vehicle ("RV")
industries, today announced its operating results for the first
quarter ended April 3, 2010.
For the first quarter of 2010, Decorator reported a net loss of
$343,521, or $0.11 per diluted share for the first quarter
ended April 3, 2010, compared to a
net loss of $1,290,929, or
$0.44 per diluted share in the same
quarter one year ago. Net sales for the first quarter decreased 21%
to $4,020,627 compared to
$5,105,638 for the first quarter of
2009.
Sales to Hospitality customers decreased by 44% to $1,664,000 from $2,953,000 in last year's first quarter. The
hospitality industry saw mixed results for the first quarter of
2010 with occupancy up 2%, room rates down 4% and revenue per
available room down 2% versus last year's first quarter. Recent
performance in March 2010 saw the
fourth consecutive month with increased room demand and an almost
7% increase in revenue per available room, the first room revenue
increase in 18 months. The improvement in recent performance
appears to suggest the hospitality industry has begun to recover
from the downturn.
Sales to MH customers decreased by 17% to $1,074,000 from $1,300,000 in last year's first quarter. The MH
industry reported that wholesale shipments for this year's first
quarter decreased by 2% from a year ago. It's difficult to draw a
direct correlation between our sales and the wholesale shipments
because of changes in product mix and pricing as well as varied
performance by different geographical regions. Our sales were
marginally impacted by closing the Salisbury, NC facility in August 2009.
Sales to RV customers increased 50% to $1,283,000 compared to $853,000 in last year's first quarter. The RV
industry reported that total RV wholesale shipments increased 97%
in the first quarter of 2010 from last year's first quarter.
Towable RV shipments, primarily travel trailers, increased by 94%
while motor home shipments increased by 137% from the first quarter
of 2009. Excluding the discontinued sewn goods sales from last
year's first quarter sales reveals our pleated shade sales to the
RV industry increased 97% in the first quarter, the same as the
industry.
Mr. Johnson, President, stated:
"The operating loss decreased to $507,037 or 13% of net sales in 2010 from
$1,770,195 or 35% of net sales in the
first quarter of 2009. Over half of the reduction came from
the one-time charge of $750,000 in
2009 related to our decision to discontinue the manufacturing of
sewn goods for the RV industry. The remainder of the loss reduction
came from cost cutting and improved margins.
"Selling and administrative expenses decreased by almost
$460,000 during the first quarter,
excluding the one-time charge of $750,000. The cost savings largely came from
reduced compensation, reduced staff and benefits and other expenses
related to the closing of facilities.
"During the quarter we continued to improve liquidity by
receiving $359,153 of a $1,200,000 income tax receivable; with the
balance being received during April
2010. In addition, on April 20,
2010 we signed a new lending agreement with Crestmark Bank
to provide up to $2 million of
borrowing availability. On April 16,
2010 the Wachovia loan balance was fixed at $3,322,000 and Wachovia will no longer provide
working capital, in accordance with the terms of the September 2009 loan modification agreement. We
recently entered into a contract to sell the building in
Douglas, GA and entered into a
contract to complete a sale/leaseback of our Haleyville, AL building. The proceeds from
these transactions and additional real estate sales will be used to
pay down the debt with Wachovia.
"Even though the economy shows signs of improvement, we expect
the recovery will be slow and continue to present challenges along
the way. We have made a lot of progress improving liquidity and
positioning the company to benefit as our markets improve. We are
not content with just waiting for the markets to recover and
continue to pursue all opportunities to increase sales, reduce
costs and return 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, 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:
|
|
|
STATEMENT OF INCOME
|
|
|
FOR QUARTERS ENDED:
|
|
|
April 3, 2010
|
April 04, 2009
|
|
NET SALES
|
$
4,020,627
|
$
5,105,638
|
|
|
|
|
|
COST OF PRODUCTS SOLD
|
3,248,495
|
4,386,843
|
|
GROSS PROFIT
|
772,132
|
718,795
|
|
SELLING AND ADMINISTRATIVE
EXPENSES
|
1,279,169
|
2,488,990
|
|
OPERATING LOSS
|
(507,037)
|
(1,770,195)
|
|
|
|
|
|
OTHER INCOME (EXPENSES)
|
|
|
|
Interest,
Investment and
|
|
|
|
Other Income
|
9,248
|
3,631
|
|
Interest
Expense
|
(53,732)
|
(36,365)
|
|
LOSS BEFORE INCOME
|
|
|
TAXES
|
(551,521)
|
(1,802,929)
|
|
PROVISION FOR INCOME TAXES
|
(208,000)
|
(512,000)
|
|
|
|
|
NET LOSS
|
$
(343,521)
|
$
(1,290,929)
|
|
|
|
|
EARNINGS (LOSS) PER SHARE:
|
|
|
BASIC
|
$
(0.11)
|
$
(0.44)
|
|
DILUTED
|
$
(0.11)
|
$
(0.44)
|
|
|
|
|
WEIGHTED – AVERAGE NUMBER
|
|
|
OF SHARES
OUTSTANDING
|
|
|
BASIC
|
3,100,184
|
2,953,560
|
|
DILUTED
|
3,100,184
|
2,953,560
|
|
|
|
|
|
|
|
|
CONDENSED BALANCE SHEET
|
|
|
|
|
|
April 3,
2010
|
January 2,
2010
|
|
|
|
|
CASH AND EQUIVALENTS
|
$
311,667
|
$
156,171
|
|
ACCOUNTS RECEIVABLE
|
1,541,535
|
1,164,669
|
|
INVENTORIES
|
2,003,985
|
2,107,151
|
|
INCOME TAXES RECEIVABLE
|
855,847
|
1,215,000
|
|
OTHER CURRENT ASSETS
|
389,380
|
366,047
|
|
TOTAL CURRENT ASSETS
|
5,102,414
|
5,009,038
|
|
NET PROPERTY AND EQUIPMENT
|
6,322,790
|
6,424,880
|
|
OTHER ASSETS
|
4,920,620
|
4,736,749
|
|
TOTAL ASSETS
|
$
16,345,824
|
$
16,170,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
$
5,717,721
|
$
5,201,633
|
|
LONG-TERM DEBT
|
455,000
|
490,000
|
|
STOCKHOLDERS' EQUITY
|
10,173,103
|
10,479,034
|
|
TOTAL LIABILITIES AND
|
|
|
STOCKHOLDERS' EQUITY
|
$
16,345,824
|
$
16,170,667
|
|
|
|
|
|
|
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SOURCE Decorator Industries, Inc.