PEMBROKE PINES, Fla., Feb. 29 /PRNewswire-FirstCall/ -- Decorator Industries, Inc. , a supplier of interior furnishings for recreational vehicles ("RV"), manufactured housing ("MH") and the hospitality industry, today announced results for the three and twelve month periods ending December 29, 2007.
Net sales for fiscal 2007 decreased 12% to $46,080,584 compared with $52,237,720 in 2006. Fourth quarter 2007 net sales decreased 7% to $9,921,813 compared to $10,627,562 for the same period a year ago.
Net loss for fiscal 2007 was $807,509 or 27 cents per diluted share compared with net income of $405,393 or 13 cents per diluted share for fiscal 2006. Net loss for the fourth quarter of 2007 was $664,788 or 22 cents per diluted share compared with net loss of $268,378 or 9 cents per diluted share in last year's fourth quarter.
Mr. Johnson, CEO/President stated:
"The sales decrease in the fourth quarter and year can be attributed to the continued slow down in the RV and MH markets. Sales to our RV customers for fiscal 2007 decreased 18% to $25,165,000 compared with $30,756,000 for fiscal 2006. RV sales for the quarter decreased by 21% to $4,708,000, compared with last year's sales for the same period of $5,990,000. The RV industry reported a 3% decline in total shipments during the fourth quarter, with towable shipments decreasing by 3% and motor home shipments declining by 4%. Industry shipments for 2007 were down 9%, with towable shipments decreasing 11% and motor homes down 1%.
"Sales to our MH customers for fiscal 2007 decreased about 14%, to $8,100,000 compared with $9,464,000 for fiscal 2006. MH sales for the quarter increased by about 2% to $1,895,000, compared with last year's fourth quarter sales of $1,854,000. This included sales of Doris Lee Draperies, acquired in November 30, 2007, of $158,000 in the fourth quarter and for the year 2007. The Manufactured Housing Institute reported that industry shipments decreased about 3% for the fourth quarter of 2007, resulting in a decrease for the year of about 18%.
"Sales to our Hospitality customers increased 7% for fiscal 2007 to $12,816,000 from $12,018,000 for fiscal 2006. Hospitality sales increased about 19% to $3,319,000 in the fourth quarter of 2007 from $2,784,000 in the fourth quarter a year ago. This included sales from Superior Drapery, acquired on June 1, 2007, of $585,000 in the fourth quarter of 2007 and $1,349,000 for the year. The hospitality industry continues to remain strong with Lodging Econometrics forecasting 133,628 new rooms in 2008 and 165,000 new rooms in 2009. This is in addition to the 4.4 million rooms in existence nationwide that are renovated approximately every five years.
"Fiscal year 2007 and the fourth quarter results include inventory write- offs totaling $640,000 for the year and $298,000 for the quarter and excess labor cost of $522,000 for the year and $116,000 for the quarter. These increased costs were largely caused by the significant slow down in both the RV and MH business. Management continues to pursue cost efficiencies including improving inventory buying practices and reducing headcount. During 2007, we have reduced our workforce by over 22%. Fixed costs were up slightly for the year due to the acquisition of Superior Drapery and Doris Lee Draperies but these increased costs were offset by reduced incentive compensation costs. We have completed the transition period and finished moving the Doris Lee customers into our existing facilities and expect to realize the full benefit of this acquisition in the second quarter of 2008.
"Our financial condition remains strong with stockholders' equity of $16,411,651. Long term debt was $1,409,000 or 7.9% of total capital. The loss in the fourth quarter caused the Company to violate one of the financial covenants contained in our agreement. The lender has informed the Company that they will work on an amendment to the loan agreement.
"We continue to pursue opportunities for growth in the markets we serve. We continue to make strategic investments in the business in an effort to ensure we are the supplier of choice in the markets we serve."
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, 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 of such products to the manufactured housing and recreational vehicle markets and is a growing supplier to the hospitality industry.
(DIIG) THE FIGURES ARE AS FOLLOWS DECORATOR INDUSTRIES, INC STATEMENTS OF EARNINGS For the Thirteen Weeks Ended For the Fiscal Year (Unaudited) (Audited) December 29, December 30, 2007 2006 2007 2006 Net Sales $ 9,921,813 $10,627,562 $46,080,584 $52,237,720 Cost of Products Sold 8,818,292 8,761,311 38,798,908 42,926,510 Gross Profit 1,103,521 1,866,251 7,281,676 9,311,210 Selling and Administrative Expenses 2,177,223 2,278,458 8,575,289 8,688,386 Operating (Loss)/ Income (1,073,702) (412,207) (1,293,613) 622,824 Other Income (Expense) Interest, Investment and Other Income 14,493 21,656 94,320 112,649 Interest Expense (23,579) (27,827) (92,216) (90,080) (Loss)/Earnings Before Income Taxes (1,082,788) (418,378) (1,291,509) 645,393 Provision for Income Taxes (418,000) (150,000) (484,000) 240,000 Net (Loss)/Income $(664,788) $ (268,378) $(807,509) $405,393 (LOSS)/EARNINGS PER SHARE Basic $ (0.22) $(0.09) $(0.27) $ 0.14 Diluted $ (0.22) $(0.09) $(0.27) $ 0.13 Weighted Average Number of Shares Outstanding Basic 3,011,292 2,998,666 3,005,988 2,982,735 Diluted 3,011,292 2,998,666 3,005,988 3,036,488 CONDENSED BALANCE SHEETS (Audited) December 29, December 30, 2007 2006 Cash and Equivalents $17,544 $11,379 Accounts Receivable 3,423,072 3,725,167 Inventories 5,181,645 5,651,252 Other Current Assets 868,371 984,145 Total Current Assets 9,490,632 10,371,943 Net Property and Equipment 9,283,489 9,703,167 Other Assets 5,489,783 4,923,461 Total Assets $24,263,904 $24,998,571 Total Current Liabilities $5,577,253 $4,989,585 Long-Term Debt 1,409,000 1,741,444 Deferred Taxes 866,000 839,000 Stockholders' Equity 16,411,651 17,428,542 Total Liabilities and Stockholders' Equity $24,263,904 $24,998,571
