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Decorator, a leading supplier of interior furnishings for recreational vehicles ("RV"), manufactured housing ("MH") and the hospitality industry, today reported a net loss of $1,290,929, or $0.44 per diluted share for the first quarter ended April 4, 2009, compared to a net loss of $475,518 million, or $0.16 per diluted share in the same quarter one year ago.
Mr. Johnson, President, stated:
"The economic crisis impacted all of our markets in the first quarter of 2009. Net sales for the first quarter decreased 51% to $5,105,638 compared to $10,503,898 for the first quarter of 2008. Our sales to RV customers were $853,000, a decrease of 82% from $4,820,000 in last year's first quarter. Sales to MH customers decreased by 46% to $1,300,000 from $2,391,000 in last year's first quarter. Hospitality sales decreased by 10% to $2,953,000 from $3,293,000.
"The RV industry reported that total RV wholesale shipments declined 63% in the first quarter of 2009 from last year's first quarter. Towable RV shipments, primarily travel trailers, declined by 61% while motor home shipments decreased about 78% from the first quarter of 2008. The Company's sales to the RV industry decreased by more than the overall market because two of the Company's major RV customers filed bankruptcies during the first week of March 2009. Sales to these two customers were just over $100,000 in the first quarter of 2009 versus more than $2 million in the first quarter 2008. The MH industry reported that wholesale shipments for this year's first quarter decreased by 46% from a year ago. The hospitality industry has seen declines in occupancy, room rates, number of new rooms coming online and hotel real estate transactions. Based on the current economic conditions we can not expect to see meaningful improvement from any of our markets over the next several quarters. To overcome the decline in our markets we will aggressively seek new opportunities to grow market share.
"The operating loss increased to $1,770,195 or 34.7% of net sales in 2009 from $757,866 or 7.2% of net sales in the first quarter of 2008. The increased loss was caused by a one-time $750,000 charge related to our decision to discontinue the manufacturing of sewn goods for the RV industry as well as the significant reduction in total sales volume. Significant cost savings totaling almost $688,000 for first quarter of 2009 were offset by the decline in sales and one-time charge.
"We recently completed the sale-leaseback of two facilities and used the proceeds of $1,438,000 to pay down our line of credit with Wachovia Bank.
"We have an experienced and committed management team that is determined to navigate through these tough times. We will continue to review our operations at all levels and take the aggressive actions necessary to make sure we overcome these challenging times."
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 4, March 29,
2009 2008
----------- -----------
NET SALES $5,105,638 $10,503,898
COST OF PRODUCTS SOLD 4,386,843 9,007,688
----------- -----------
GROSS PROFIT 718,795 1,496,210
SELLING AND ADMINISTRATIVE EXPENSES 2,488,990 2,254,076
----------- -----------
OPERATING LOSS (1,770,195) (757,866)
OTHER INCOME (EXPENSES)
Interest, Investment and Other Income 3,631 19,449
Interest Expense (36,365) (30,101)
----------- -----------
LOSS BEFORE INCOME TAXES (1,802,929) (768,518)
PROVISION FOR INCOME TAXES (512,000) (293,000)
----------- -----------
NET LOSS $(1,290,929) $(475,518)
=========== ===========
EARNINGS (LOSS) PER SHARE:
BASIC $(0.44) $(0.16)
=========== ===========
DILUTED $(0.44) $(0.16)
=========== ===========
WEIGHTED - AVERAGE NUMBER OF SHARES OUTSTANDING
BASIC 2,953,560 2,936,556
DILUTED 2,953,560 2,936,556
CONDENSED BALANCE SHEET
April 4, January 3,
2009 2009
----------- -----------
CASH AND EQUIVALENTS $43,370 $16,499
ACCOUNTS RECEIVABLE 2,138,103 2,214,256
INVENTORIES 2,910,909 3,783,581
OTHER CURRENT ASSETS 473,376 524,879
----------- -----------
TOTAL CURRENT ASSETS 5,565,758 6,539,215
NET PROPERTY AND EQUIPMENT 8,241,003 8,570,067
OTHER ASSETS 5,620,313 5,037,527
----------- -----------
TOTAL ASSETS $19,427,074 $20,146,809
=========== ===========
TOTAL CURRENT LIABILITIES $6,704,821 $6,132,116
LONG-TERM DEBT 585,000 615,000
STOCKHOLDERS' EQUITY 12,137,253 13,399,693
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $19,427,074 $20,146,809
=========== ===========
SOURCE Decorator Industries, Inc.
http://www.decoratorindustries.com
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