-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QHSLttwEb8B3Q4HLfBqw+d6qjXaqLeLGFDzTsxvnkRLkelTVVyl+RDNAfNvKcUv6 ZzhzkEeMr1x1c31M9cxkzA== 0001275287-05-000793.txt : 20050302 0001275287-05-000793.hdr.sgml : 20050302 20050302094029 ACCESSION NUMBER: 0001275287-05-000793 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050301 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20050302 DATE AS OF CHANGE: 20050302 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DECORATOR INDUSTRIES INC CENTRAL INDEX KEY: 0000027613 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS FABRICATED TEXTILE PRODUCTS [2390] IRS NUMBER: 251001433 STATE OF INCORPORATION: PA FISCAL YEAR END: 0102 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07753 FILM NUMBER: 05652480 BUSINESS ADDRESS: STREET 1: 10011 PINES BLVD SUITE 201 CITY: PEMBROKE PINES STATE: FL ZIP: 33024 BUSINESS PHONE: 3054368909 8-K 1 di2184.txt ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): March 1, 2005 DECORATOR INDUSTRIES, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Pennsylvania 1-7753 25-1001433 ------------------------ ------------ ------------------ (State of Incorporation) (Commission (IRS Employer File Number) Identification No.) 10011 Pines Boulevard, Pembroke Pines, Florida 33024 ---------------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (954) 436-8909 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On March 1, 2005, registrant issued a press release announcing its financial results for the fiscal quarter and fiscal year ended January 1, 2005. A copy of the press release is furnished as Exhibit 99.1 to this report. The information in this report shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DECORATOR INDUSTRIES, INC. (Registrant) Date: March 2, 2005 By: /s/ Michael K. Solomon --------------------------- Michael K. Solomon Vice President and Principal Financial Officer EX-99.1 2 di2184ex991.txt Exhibit 99.1 DECORATOR INDUSTRIES, INC. REPORTS INCREASED EARNINGS AND SALES FOR FISCAL YEAR 2004 PEMBROKE PINES, Fla., March 1 /PRNewswire-FirstCall/ -- Decorator Industries, Inc. (Amex: DII) today reported the third consecutive year of improved earnings and sales. Net income for the fiscal year ended January 1, 2005, was $1,706,222, or 58 cents per diluted share, compared with $1,561,778, or 55 cents per diluted share, for fiscal 2003. Net income for the fourth quarter of fiscal 2004 was $315,195, or 11 cents per diluted share, compared with $336,828, or 11 cents per diluted share in last year's fourth quarter. The fourth quarter benefited by $61,000 after tax, net of Phoenix start-up costs, due to adjustments affecting the prior quarters of 2004. EBITDA, a measure of income before income taxes, interest expense, depreciation and amortization, was $4,429,127 for fiscal 2004 compared with $3,357,432 for fiscal 2003. For the fourth quarter of fiscal 2004, EBITDA was $936,023 compared with $760,331 for the year-ago period, Mr. William Bassett, Chairman, stated: "Sales for fiscal 2004 increased 21% to $50,449,214 compared with $41,803,224 in the prior year. This quarter's sales increased to $11,212,821 from $10,271,858 in the fourth quarter of last year. "Sales to our Recreational Vehicle (RV) customers increased 21% in fiscal 2004 and decreased about 5% in the fourth quarter compared with the same period a year ago, partially due to the acquired Fleetwood sewing operation. The RV industry reported a slowing of year-over-year growth for the fourth quarter to about 8%. Industry shipments for the full year were up 15% compared to a year ago. Overall, RV shipments were the highest since 1978 and set new records for both the fourth quarter as well as for the year as a whole. "Sales to our Manufactured Housing (MH) customers increased 36% in fiscal 2004 and 54% for the fourth quarter compared with the same period a year ago. All of the increased MH sales resulted from the acquisition of the Fleetwood sewing operation. Industry MH shipments for both the year and the quarter were essentially flat compared to the year-ago period. However, of particular note, the Manufactured Housing Institute just reported an increase in January housing shipments of almost 17% compared to January 2004. Hopefully this signals start of the long-awaited turnaround for the MH industry. "Gross margin for the fiscal year 2004 and 2003 was 21.1% and 21.8%, respectively. The respective gross margin for fourth quarter of 2004 and 2003 was 21.6% and 21.9%. "For fiscal years 2004 and 2003, selling and administrative expenses were $7,790,561, or 15.4% of sales, and $6,590,362, or 15.8% of sales, respectively. The respective selling and administrative expenses for the fourth quarter of 2004 and 2003 were $1,904,984, or 17.0% of sales and $1,712,153, or 16.7% of sales. The dollar increases over 2003 are largely due to expenses associated with the Fleetwood acquisition, particulary the amortization of the intangible asset of $706,500 for fiscal 2004 and $187,500 for the fourth quarter of 2004. Net of the amortization cost, the comparative selling and administrative expense as a percent of sales is 14.0% for fiscal 2004 and 15.3% for the fourth quarter of 2004. "Capital expenditures were $2,649,181 for fiscal 2004. The single largest expenditure was the purchase in August of a manufacturing facility in Phoenix, Arizona for $1,524,099. The Phoenix facility, in addition to better servicing our current customers, should provide a platform to significantly expand our business in the western part of the United States. Also, during the first quarter of the year, we spent $332,920 on a building addition that increased the capacity of our Elkhart, Indiana pleated shade facility by 50%. "Our financial condition remains strong. At January 1, 2005, the Company had no borrowings against its $5,000,000 line of credit and its working capital was $3,945,134. The long-term debt to total capitalization remained low at 9.8%. "We will continue to pursue opportunities for growth from both internal expansion and acquisitions. We are committed to increase our market share and productivity, the long-term drivers of our past successes. We are resolved to being the supplier of choice in each of our markets we serve." Statements contained in this release that are not historical facts are forward-looking statements that could differ materially from actual results. Primary factors that could cause actual results to materially differ from those in the forward-looking statements are the level of demand for recreational vehicles, manufactured housing and hotel/motel accommodations, the general economic conditions, interest rate fluctuations, competitive products and pricing pressures within the Company's markets, the Company's ability to contain its manufacturing costs and expenses, and other factors. Decorator Industries, Inc., founded in 1953, designs, manufactures and sells interior furnishing products, principally draperies, curtains, shades, blinds, valance boards, bedspreads, comforters, pillows and cushions. Decorator is a leading supplier of such products to the manufactured housing and recreational vehicle markets and is a growing supplier to the hospitality market. THE FIGURES ARE AS FOLLOWS:
CONDENSED STATEMENT OF INCOME* ------------------------------------------------------------- FOR QUARTERS ENDED: FOR YEARS ENDED: (UNAUDITED) (AUDITED) ----------------------------- ----------------------------- Jan. 1 2005 Jan. 3, 2004 Jan. 1, 2005 Jan. 3, 2004 ------------- ------------- ------------- ------------- NET SALES $ 11,212,821 $ 10,271,858 $ 50,449,214 $ 41,803,224 NET INCOME $ 315,195 $ 336,828 $ 1,706,222 $ 1,561,778 EARNINGS PER SHARE: BASIC $ 0.12 $ 0.12 $ 0.61 $ 0.56 DILUTED $ 0.11 $ 0.11 $ 0.58 $ 0.55 WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING 2,826,876 2,797,293 2,816,661 2,794,286
* Quarter ended January 3, 2004 was a 14-week period. Year ended January 3, 2004 a was 53-week period. CONDENSED BALANCE SHEET JAN. 1, 2005 JAN. 3, 2004 ------------- ------------- CASH AND EQUIVALENTS $ 730,539 $ 3,991,631 ACCOUNTS RECEIVABLE 3,464,674 3,519,418 INVENTORIES 5,113,651 4,123,397 OTHER CURRENT ASSETS 366,111 274,285 TOTAL CURRENT ASSETS 9,674,975 11,908,731 NET PROPERTY AND EQUIPMENT 7,857,743 6,021,766 OTHER ASSETS 6,740,883 3,157,825 TOTAL ASSETS $ 24,273,601 $ 21,088,322 TOTAL CURRENT LIABILITIES $ 5,729,841 $ 3,900,869 LONG-TERM DEBT 1,752,568 1,926,832 DEFERRED TAXES 680,000 646,000 STOCKHOLDERS' EQUITY 16,111,192 14,614,621 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 24,273,601 $ 21,088,322 SOURCE Decorator Industries, Inc. -----END PRIVACY-ENHANCED MESSAGE-----