Manufactured home and RV delivery company Morgan Group Inc. reported its fourth quarter and full-year 2001 losses narrowed, although the firm also revealed that its ability to satisfy its financial obligations will be “uncertain” until business picks up in the spring.
The company reported a net loss of $1.8 million during the three months ended Dec. 31, compared with a net loss of $4.3 million incurred during the final three months of 2000.
For the full-year 2001, Morgan Group reported a net loss of $2 million, compared with a net loss of $4.8 million during 2000.
Morgan Group’s operating revenues declined 26% during the fourth quarter to $19.5 million and slipped 21% during the full year 2001 to $101.2 million.
“Reduced revenues have reduced the company’s borrowing capacity, adversely affecting liquidity,” Morgan Group reported. “The company has obtained temporary incremental borrowing capacity from its lender and has received a reduction in collateral requirements and a rebate of a portion of prepaid premium related to insurance arrangements.”
However, Morgan Group President and CEO Anthony Castor III said, “We are confident that the company’s management team will continue its efforts in streamlining operations and will be poised to take advantage of opportunities resulting from the imminent turnaround of the manufactured housing and RV sectors.”
Morgan Group, parent of Morgan Drive Away Inc. and TDI Inc., believes it is the largest manufactured home and RV delivery firm.