Decorator Industries Inc., Pembroke Pines, Fla., today (Nov. 18) reported a net loss of $468,527, or $0.16 per diluted share, for the third quarter of the company’s fiscal 2009 year. The loss, attributable to lowered sales in the company’s hospitality, manufactured housing and recreational vehicle industries, was slightly higher than the net loss of $407,290, or $0.14 per diluted share, that the company incurred in the third quarter of 2008 and offset gains the company made in reducing overhead expenses.
For the first nine months, the company reported a net loss of $2.1 million, compared to a net loss of $1.9 million for the same period in 2008. The 2009 loss includes a pre-tax charge of $900,000 related to the scheduled consolidation of certain facilities and the impairment of assets.
“We reduced the operating loss to $512,606 for the third quarter of 2009 compared to $635,466 in last year’s third quarter,” said William Johnson, president of the interior furnishings company, in a news release. “The operating loss was caused by the 52% drop in sales. The decline in sales offset the almost 5% improvement in the gross profit margin and $850,000 reduction in overhead costs compared to the third quarter of 2008. We consolidated our Salisbury, N.C., facility into Haleyville, Ala., in a continuing effort to reduce operating costs and better utilize the remaining facilities.”
Net sales for the third quarter of fiscal 2009 were $4.5 million, down 52% from $9.3 million for the same period in 2008. Net sales for the first nine months of the year were $15.3 million, a decline of 53% from 2008. Sales to RV customers in the third quarter decreased 56% to $1.0 million, while year-to-date sales dropped 75% to $2.9 million. In the manufactured-housing market, sales decreased 38% in the third quarter, to $1.3 million. Sales in both the RV and MH markets reflected the downturn encountered by both industries; according to the Manufactured Housing Institute, shipments decreased about 42% for the nine-month period in 2009 compared to a year earlier, while the RV industry reported total shipments were down by 43% for the same time period.