Decorator Industries net income up 31% for Q1

10 May '06

3 min read

"Although the Recreational Vehicle Industry Association is forecasting a decline in shipments this year, total industry shipments for the first quarter of 2006 were up over 15 percent. We believe that the increase in towable RV shipments in the first quarter of 2006 was partially due to retail dealer's restocking of inventories that had been depleted by FEMA purchases after the hurricanes last year.

We expect that both the RV and MH markets' performance over the balance of 2006 will be more reflective of normal demand. However, the MH market could benefit from increased demand for manufactured homes due to the need for permanent replacement housing in the hurricane-devastated areas. The hospitality industry appears to be in the early stages of a growth cycle with occupancy rates at high levels, creating a strong and healthy market.

"Our financial condition is very strong with stockholders' equity of $17,684,593. Long term debt was 1,486,607 or 7.8 percent of total capitalization. Working capital increased to $6,680,220 from $4,941,655 a year ago. The Company had no borrowings against its $5,000,000 line of credit at the end of the quarter.

"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 2006."

Decorator Industries, 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 Lodging Industry.

Decorator Industries Inc

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