Exhibit 99.1
DECORATOR INDUSTRIES REPORTS STRONG FIRST QUARTER RESULTS
PEMBROKE PINES, Fla., May 9 /PRNewswire-FirstCall/ -- Decorator
Industries, Inc. (Amex: DII), a supplier of interior furnishings for
recreational vehicles ("RV"), manufactured housing ("MH") and the lodging
industry, today announced that net income for the first quarter ended April 2,
2005 was $418,336 or 14 cents per diluted share. This compares with net
income for the first quarter a year ago of $200,884 or 7 cents per diluted
share. Last year's results included pre-tax charges of $399,349 or $228,189
net of income taxes, associated with the acquisition of Fleetwood Enterprises'
Drapery operation in January 2004 which originally had been capitalized.
Net sales for the first quarter of 2005 were $12,431,382 compared with
$12,792,048 for the same period last year. Our sales to RV customers
decreased by 12% from last year. Sales to both our MH and lodging industry
customers increased by 10% and 17% respectively. The RV industry reported
mixed results for the first quarter, with travel trailer shipments increasing
by 10% and motor home shipments decreasing by 10% from a year earlier. The MH
industry reported that shipments for the first quarter increased by 8% from a
year ago.
The Recreational Vehicle Industry Association is forecasting that factory
shipments in 2005 will remain strong as part of an upward trend expected
during the next decade. Total RV shipments for 2005 are projected to be
360,800, the second best year since 1978. The MH industry is expecting a
modest improvement in factory shipments for 2005. Hopefully, the current
strong demand in Arizona, California, and Florida is the vanguard of a more
broad-based recovery for the industry.
We believe that both the short-term and long-term outlook for Decorator
Industries is very positive. In addition to favorable conditions for the
markets we serve, we have the resources and capabilities to achieve above
market performance. We look forward to another successful year in 2005.
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, cushions and
trailer tents. 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 UNAUDITED FIGURES ARE AS FOLLOWS:
CONDENSED STATEMENT OF INCOME
FOR THIRTEEN WEEKS ENDED:
-----------------------------
April 2, 2005 April 3, 2004
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NET SALES $ 12,431,382 $ 12,792,048
NET INCOME $ 418,336 $ 200,884
EARNINGS PER SHARE:
BASIC $ 0.15 $ 0.07
DILUTED $ 0.14 $ 0.07
AVERAGE NUMBER OF SHARES OUTSTANDING 2,852,270 2,805,963
CONDENSED BALANCE SHEET
April 2, 2005 January 1, 2005
------------- ----------------
(Unaudited) (Audited)
CASH AND EQUIVALENTS $ 327,644 $ 730,539
ACCOUNTS RECEIVABLE 4,459,312 3,464,674
INVENTORIES 5,064,714 5,113,651
OTHER CURRENT ASSETS 572,097 588,853
TOTAL CURRENT ASSETS 10,423,767 9,897,717
NET PROPERTY AND EQUIPMENT 7,698,851 7,857,743
OTHER ASSETS 6,042,811 6,206,617
TOTAL ASSETS $ 24,165,429 $ 23,962,077
TOTAL CURRENT LIABILITIES $ 5,482,112 $ 5,729,841
LONG-TERM DEBT 1,776,730 1,752,568
DEFERRED TAXES 657,000 680,000
STOCKHOLDERS' EQUITY 16,249,587 15,799,668
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 24,165,429 $ 23,962,077
SOURCE Decorator Industries, Inc.