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Decorator Industries report Q2 sales of $64,000

16 Aug '07

4 min read

Total RV industry shipments for the first six months of 2007 were down by 13%, with towable shipments decreasing 15% and motor home shipments increasing 2%.

"Sales to our MH customers decreased about 12% to $2,248,000 in the second quarter of fiscal 2007, compared with last year's second quarter sales of $2,542,000."

"For the six month period of fiscal 2007 our MH sales decreased about 22%, to $4,162,000 compared with $5,350,000 for the same period a year ago. The Manufactured Housing Institute reported that industry shipments decreased about 18% from last year's second quarter, resulting in a year-to- date decrease of about 28%.

"Sales to our Hospitality customers decreased about 7% to $3,425,000 in the second quarter of 2007 from $3,687,000 in the second quarter a year ago."

"For the first six months of 2007 Hospitality sales were $6,374,000 compared with $6,414,000 in the first six months of 2006. Sales to our Hospitality customers are impacted by the scheduling requirements of the individual properties and can vary significantly from period to period."

Our fiscal 2007 revenues include $200,000 of sales related to the acquisition of Superior Drapery on June 1, 2007. Superior is a supplier of window treatments and bed coverings, mostly to motels located in the northeast.

The reduction in selling and administrative expenses of $94,000 from last year's second quarter is largely due to lower sales commissions and reduced performance compensation. The increase in both cost of products sold and the selling and administrative expenses as a percent of net sales, is primarily due to fixed expenses being absorbed over a lower sales volume.

"While the immediate outlook for our MH and RV business remains challenging, we are optimistic about our prospects for growth servicing the Hospitality market. We expect that the acquisition of Superior Drapery will be immediately accretive to earnings."

"Further, we are focused on increasing our relationships with major hotel/motel chains. We believe that our expanded capacity and sales and marketing initiatives should enable us to become a more significant resource to these lodging chains."

"The decrease in sales from last year's second quarter is largely related to the difficult market conditions and more specifically the production levels and requirements of our RV and MH customers. The decline in gross profit of $483,000 from last year's second quarter is largely attributable to these lower revenues."

Decorator Industries Inc

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