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Quaker Fabric Corporation reports $12.1m loss

21 Jul '06

4 min read

Upholstery fabric manufacturer Quaker Fabric Corporation has reported net sales of $42.9 million, a net loss of ($12.1 million), and diluted and basic losses per share of ($0.72) for the three-month period ended July 1, 2006; compared to net sales of $68.9 million, a net loss of ($10.3 million), and diluted and basic losses per share of ($0.61) for the corresponding period of fiscal 2005.

Quaker's financial results for the second quarter of fiscal year 2006 include $9.1 million of after-tax restructuring and asset impairment charges ($8.3 million of which were non-cash) associated with the company's current restructuring activities. Excluding these charges, net loss for the second fiscal quarter of 2006 was ($3.1 million) or ($0.18) per diluted share.

Results of operations for the first six months of fiscal year 2006 were net sales of $89.2 million, a net loss of ($16.3 million), and diluted and basic losses per share of ($0.96); compared to net sales of $128.1 million, a net loss of ($13.4 million), and diluted and basic losses per share of ($0.80) for the corresponding period of fiscal 2005. Excluding asset impairment, and restructuring and related charges, net loss for the first six months of fiscal 2006 was ($6.4 million), or ($0.38) per share.

"The 7.3% drop in our sales versus the first quarter of this year was disappointing. At the same time, our second quarter margin performance, variable costs, fixed costs and SG&A expenses indicate a sequential improvement in our operating performance compared to the first three months of this year - reflecting the restructuring plan and cost cutting measures we have put in place, and allowing us to remain in compliance with the financial covenants in our loan documents while we simultaneously continue working on our financial structure and focusing on restoring the company to profitability," said Larry Liebenow, Quaker's President and CEO.

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