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, April 04, 2010 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, January 2, 2010 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 =========== ===========
Decorator Industries, Inc.
CONTACT: William Johnson, President-CEO, +1-954-436-8909
Web Site: http://www.decoratorindustries.com/
