Recreational Vehicle and Manufactured Housing Sales Boost Profits in First Quarter
PEMBROKE PINES, Fla., May 10 /PRNewswire-FirstCall/ -- Decorator Industries, Inc. (AMEX:DII), a supplier of interior furnishings for recreational vehicles ("RV"), manufactured housing ("MH") and the lodging industry, today announced that net income for the first quarter ended April 1, 2006 increased 31% to $547,960 or 18 cents per diluted share. This compares with net income for the first quarter a year ago of $418,336 or 14 cents per diluted share.
Net sales for the first quarter of 2006 increased 18% to $14,662,315, a record high. This compares with $12,431,382 from the same period last year. Our sales to RV customers were $9,127,000, an increase of about 25% from last year. Approximately 12% of the Company's sales to its RV customers were Emergency Living Units (ELU's). Excluding the ELU's, the increase in RV sales would have been about 10% compared with the first quarter of 2005. Sales to our MH customers increased just over 14% to $2,808,000 while sales to our hospitality customers of $2,727,000 were up about 2% from the first quarter of last year.
Mr. Bassett, Chairman, stated: "The RV Industry reported mixed results for the quarter, with towable RV shipments increasing by 21% and motor home shipments decreasing by 12% from a year earlier. The RV Industry does not include FEMA-related ELU's in their figures. The MH Industry reported that shipments for the first quarter increased by just over 9% from a year ago. The MH industry increase is inclusive of FEMA shipments. Our sales to both our RV and MH customers are affected by the strength of each of these industries and more directly by the performance of our specific customers.
"Although the Recreational Vehicle Industry Association is forecasting a decline in shipments this year, total industry shipments for the first quarter of 2006 were up over 15%. We believe that the increase in towable RV shipments in the first quarter of 2006 was partially due to retail dealer's restocking of inventories that had been depleted by FEMA purchases after the hurricanes last year. We expect that both the RV and MH markets' performance over the balance of 2006 will be more reflective of normal demand. However, the MH market could benefit from increased demand for manufactured homes due to the need for permanent replacement housing in the hurricane-devastated areas. The hospitality industry appears to be in the early stages of a growth cycle with occupancy rates at high levels, creating a strong and healthy market.
"Our financial condition is very strong with stockholders' equity of $17,684,593. Long term debt was 1,486,607 or 7.8% of total capitalization. Working capital increased to $6,680,220 from $4,941,655 a year ago. The Company had no borrowings against its $5,000,000 line of credit at the end of the quarter.
"We believe that both the short term and long term outlook for Decorator Industries is very positive. In addition to favorable conditions for the markets we serve, we have the resources and capabilities to achieve above market performance. We look forward to another successful year in 2006." 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 Lodging Industry.
THE UNAUDITED FIGURES ARE AS FOLLOWS: CONDENSED STATEMENT OF INCOME
FOR THIRTEEN WEEKS ENDED: April 1, 2006 April 2, 2005 NET SALES $14,662,315 $12,431,382 NET INCOME $547,960 $418,336 EARNINGS PER SHARE: BASIC $0.19 $0.15
DILUTED $0.18 $0.14 AVERAGE NUMBER OF SHARES OUTSTANDING 2,950,508 2,852,270 CONDENSED BALANCE SHEET April 1, 2006 December 31, 2005
(Unaudited) (Audited) CASH AND EQUIVALENTS $820,415 $490,377
ACCOUNTS RECEIVABLE 5,238,902 4,574,415
INVENTORIES 5,928,112 5,800,553
OTHER CURRENT ASSETS 431,453 311,603
TOTAL CURRENT ASSETS 12,418,882 11,176,948 NET PROPERTY AND EQUIPMENT 7,377,482 7,431,823
OTHER ASSETS 5,713,498 5,685,594
TOTAL ASSETS $25,509,862 $24,294,365
TOTAL CURRENT LIABILITIES $5,738,662 $5,084,599
LONG-TERM DEBT 1,486,607 1,536,754
DEFERRED TAXES 600,000 585,000
STOCKHOLDERS' EQUITY 17,684,593 17,088,012
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $25,509,862 $24,294,365
DATASOURCE: Decorator Industries, Inc.
CONTACT: William Bassett, Chairman, Decorator Industries, Inc., +1-954-436-8909 Web site: http://www.decoratorindustries.com/
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