Decorator Industries Reports First Quarter Results

Decorator, a leading supplier of interior furnishings for recreational vehicles ("RV"), manufactured housing ("MH") and the hospitality industry, today reported a net loss of $475,518, or $0.16 per diluted share for the first quarter ended March 29, 2008, compared to a net loss of $91,929, or $0.03 per diluted share in the same quarter one year ago.

Mr. Johnson, President, stated:

The continuing downturn in two of our markets negatively impacted our sales and income in the first quarter of 2008. Net sales for the first quarter decreased 14% to $10,503,898 compared to $12,247,417 for the first quarter of 2007. Sales to our RV customers were $4,820,000, a decrease of 35% from $7,384,000 in last year's first quarter. Sales to MH customers increased by 25% to $2,391,000 from $1,914,000 in last year's first quarter; this includes sales from our Doris Lee acquisition on November 30, 2007. Sales to our existing MH customers declined 12% to $1,683,000 from $1,914,000 in the first quarter of 2007. Hospitality sales increased 12% to $3,293,000 from $2,949,000; this includes $425,000 in sales from our Superior Drapery acquisition of June 1, 2007.

The RV industry reported that total RV wholesale shipments declined 12% in the first quarter of 2008 from last year's first quarter. Towable RV shipments, primarily travel trailers, declined by 9% while motor home shipments decreased about 25% from the first quarter of 2007. The MH industry reported that wholesale shipments for this year's first quarter decreased by 3% from a year ago.

Conditions for the RV and MH markets continue to become more challenging. The RV market is expected to produce negative comparisons over the remainder of the year while the MH market has also weakened and is expected to finish the year with fewer shipments than 2007. Rising fuel prices and uncertainty in the economy have negatively impacted retail sales of RVs, causing dealers to adjust inventories and hold off ordering newer models. The MH market continues to experience weak retail purchases largely due to the constrained availability of consumer credit. Spring and summer have traditionally been the prime selling seasons for both the RV and MH markets; current economic and market conditions do not indicate that this will be a favorable selling season. The Hospitality market continues to show growth which is reflected in the increased order flow we are currently experiencing. This increased order flow should impact us favorably over the balance of the year.

The operating loss increased to $768,518 or 7.3% of net sales in 2008 from $141,929 or 1.2% of net sales in the first quarter of 2007. The increased loss was caused by reduced sales volumes, labor inefficiencies and increased fixed costs from our recent acquisitions.

We are disappointed with the results and are evaluating plans to improve our performance as we move forward. We will continue to aggressively work on growing our hospitality market as this presents our best growth opportunity. We have faced these types of challenges before and we are confident that we will take the necessary actions that will enable us to remain a financially strong company providing growth and profitability. As always, we seek opportunities to grow our business through market diversification, geographic expansion and acquisition.

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:

                                              March 29, 2008 March 31, 2007

    NET SALES                                    $10,503,898    $12,247,417

    COST OF PRODUCTS SOLD                          9,007,688     10,317,008
    GROSS PROFIT                                   1,496,210      1,930,409
    SELLING AND ADMINISTRATIVE EXPENSES            2,254,076      2,072,278
    OPERATING LOSS                                  (757,866)      (141,869)

    OTHER INCOME (EXPENSE)
     Interest, Investment and Other Income            19,449         23,201
     Interest Expense                                (30,101)       (23,261)
    LOSS BEFORE INCOME TAXES                        (768,518)      (141,929)
    PROVISION FOR INCOME TAXES                      (293,000)       (50,000)

    NET LOSS                                       $(475,518)      $(91,929)

    EARNINGS (LOSS) PER SHARE:
     BASIC                                            $(0.16)        $(0.03)
     DILUTED                                          $(0.16)        $(0.03)

    WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING
     BASIC                                         2,936,556      3,001,228
     DILUTED                                       2,936,556      3,001,228



                                                   CONDENSED BALANCE SHEET

                                              March 29, 2008 December 29, 2007

    CASH AND EQUIVALENTS                             $16,504        $17,544
    ACCOUNTS RECEIVABLE                            3,767,569      3,423,072
    INVENTORIES                                    5,503,927      5,181,645
    OTHER CURRENT ASSETS                             999,407        868,371
    TOTAL CURRENT ASSETS                          10,287,407      9,490,632
    NET PROPERTY AND EQUIPMENT                     9,199,992      9,283,489
    OTHER ASSETS                                   5,297,392      5,489,783
    TOTAL ASSETS                                 $24,784,791    $24,263,904

    TOTAL CURRENT LIABILITIES                     $6,244,636     $5,577,253
    LONG-TERM DEBT                                 2,464,000      1,409,000
    DEFERRED TAXES                                   582,000        866,000
    STOCKHOLDERS' EQUITY                          15,494,155     16,411,651
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $24,784,791    $24,263,904

SOURCE Decorator Industries, Inc.

Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze, Daily News

Tags: Building and Construction, Banking and Finance, florida

   _   _

         

Is your favorite bookmark site missing? Ask for it.