Decorator Industries Inc. Tuesday (Aug. 18) announced its operating results for the second quarter ended July 4.
The Pembroke Pines, Fla.-based supplier of interior furnishings to the RV and manufactured housing industries reported a net loss of $366,181 for the quarter compared with a net loss of $1,060,529 in the second quarter of 2008, according to a news release.
The net loss for the first six months of fiscal 2009 was $1,657,110 compared with a net loss of $1,536,047 for the same period a year ago. The second quarter 2009 loss included a pre-tax charge of $150,000 related to the scheduled consolidation of certain facilities and the impairment of assets compared to a pre-tax charge of $1,430,000 in the second quarter of 2008. The six months of 2009 included pre-tax charges of $900,000 compared to pre-tax charges of $1,430,000 in 2008.
Net sales for the second quarter of fiscal 2009 were $5,677,395, down 55% from $12,563,069 for the same period a year ago. Net sales for the second quarter of 2009 increased 11% over the first quarter of 2009. Net sales for the first six months of fiscal 2009 were $10,783,033 a decline of 53% from $23,066,967 in the first half of 2008.
Sales to RV customers decreased 76% to $1,064,000 in the second quarter of fiscal 2009, compared with last year’s second quarter sales of $4,503,000. For the six-month period of fiscal 2009, RV sales decreased by 79% to $1,917,000 compared with $9,323,000 for the same period a year ago.
The company’s sales to the RV industry declined more than the overall market because two of the company’s major customers declared bankruptcy the first week of March. In May Decorator stopped manufacturing certain products for the RV industry because it felt they were no longer profitable after the loss of these two major customers.
Going forward, the company will focus its attention on the pleated shade and pleated door products where it has a history of being a market leader.
In May, the company completed the sale-leaseback of two operating facilities netting $1,438,000 in proceeds. The company continues to market four idled facilities for sale in a further effort to improve its liquidity. Wachovia Bank, a Wells Fargo company, extended a line of credit until Sept. 30, and has indicated it will provide a series of six-month forbearance agreements as the company works its way back to profitability.