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Furniture supplier Decorator Industries Inc. reported a wider net loss for its third quarter, ended Sept. 29, as a weak economy and tightened credit impacted the company’s core recreational vehicle and manufactured housing markets.
In light of the challenging environment, President and CEO William Johnson said that the company continues to cut costs, including the consolidation of RV operations in Indiana and closure of two MH facilities during the quarter.
The Pembroke Pines, Fla.,-based company reported a third-quarter net loss of $1.9 million compared with a net loss of $407,290 a year ago. Sales fell 17% to $9.3 million from $11.2 million.
For the nine months, the net loss was $1.9 million compared with a net loss of $142,721 the previous year. Decorator noted that results included a one time pre-tax charge of $1.4 million related to the closing of certain facilities and the impairment of assets. Sales during the period were $32.4 million, representing a decline of 10% from $36.2 million the year prior.
RV sales decreased 61% to $2.3 million in the third quarter compared with $6.1 million a year ago while RV revenue for the nine months decreased 43% to $11.7 million.
“The MH and RV industries saw an immediate impact from this instability in the lack of funding for both the manufacturers as well as retail sales outlets,” Johnson said, adding that sales in the hospitality sector improved.
Looking forward, Johnson said that the firm is “prepared to take whatever actions necessary to strengthen the company’s financial position in an effort to grow the business and return the company to profitability.”