Decorator Industries Inc. has announced its operating results for the first quarter ended April 4.
The Pembroke Pines, Fla.-based supplier of interior furnishings for the RV, manufactured housing and hospitality industries Monday (May 18) reported a net loss of $1,290,929 for the quarter compared to a net loss of $475,518 in the same quarter a year ago.
William Johnson, president and CEO, 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 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,” Johnson stated. “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. Based on the current economic conditions we cannot 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.”
Johnson continued, “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.”
The company recently completed the sale-leaseback of two facilities and used the proceeds of $1,438,000 to pay down its 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,” Johnson concluded.