Morgan Group Inc., parent of RV, manufactured home and commercial vehicle delivery firms Morgan Drive Away and TDI, reports a net loss of $2.7 million for the first quarter.
The American Stock Exchange-listed company’s first quarter loss includes a $2.3 million non-cash charge for goodwill impairment.
The $2.7 million net loss during the first three months of this year compares with a $541,000 loss incurred during the first quarter of 2001.
Morgan’s operating loss in the first quarter was $1.4 million, compared with $475,000 a year earlier.
The company also received a $1.1 million federal income tax benefit in the first quarter.
Morgan’s sales revenue declined 31% to $16.3 million primarily because of a 46% decline in manufactured home delivery revenue.
While the manufactured home industry “continues to be sluggish … down slightly from a year ago,” the RV industry “is flourishing,” said Anthony Castor III, president and CEO of Morgan Group.
“We are confident that our extensive cost reductions as well as our aggressive sales programs have positioned the company for a return to profitability this year,” Castor added.