Decora Industries Reports First Quarter Results.FORT EDWARD Fort Edward could refer to:
in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DECO) today reported that the net income for the three months ended June 30, 1997 totaled $584,000, or $0.02 per share on net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $9,147,000, as compared with net income of $520,000, or $0.02 per share on net sales of $10,138,000 for the like period a year earlier. Sales in the fiscal 1998 first quarter were impacted by inventory reductions by Company's principal customer, Rubbermaid as a result of the continued emphasis by retailers and wholesalers to minimize inventory levels throughout the distribution chain and to deliver on a just-in-time basis based on consumer demand. As a result, net sales to Rubbermaid were 10 percent lower than during the same period in the prior year. Nathan Hevrony, Decora's Chairman and Chief Executive Officer stated: "Although international sales in non-European markets increased during the quarter, European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. sales were affected by timing differences in orders and by an inventory build in the prior year's fourth quarter. As a result, international sales during the first quarter of fiscal 1997 were $239,000 lower than in the prior year period. We believe that our international marketing initiatives in Europe, South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. and China have the potential to favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact sales and profitability in the second half of fiscal 1998 and beyond." Gross profit and gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for the quarter ended June 30, 1997 increased to 28.3 percent, or $2,591,000, from 24.1 percent, or $2,444,000, in last year's first quarter. Gross margin in the current quarter was favorably impacted by changes in sales mix sales mix See product mix. and by raw material price changes relative to the prior quarter. Income before taxes increased by 52 percent increase to $835,000 in the fiscal 1998 first quarter from $549,000 in the similar period a year ago, resulting from a decrease of $217,000 in interest expense, partially offset by an increase of $78,000 in marketing, general and administrative expenses and a $222,000 increase in the provision for income taxes. While the Company anticipates that its cash payments for taxes during fiscal 1998 will remain at historical levels due to the use of net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. to offset taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. , the first quarter tax provision reflects what management expects to be the "effective" tax rate going forward following the release of the remaining net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. valuation allowance benefit in fiscal 1997. Mr. Hevrony continued: "The potential of new commercial applications for our Wearlon(R) technology was demonstrated during the quarter with the Toronto Metropolitan Separate School Board's adoption of Decora's Wearlon(R) 711 graffitti-resistant coating and the use of Decora's Wearlon(R) high performance coating, supplied by Decora's distributor Sun Coating Company, on several projects within the "Big Three" automotive manufacturers and Tier One automotive suppliers. These new commercial applications have resulted from Decora's considerable investment in new product development and evaluation over the past several years. "In addition, we believe that certain other long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. customer evaluations of Wearlon(R) have the potential to generate initial commercial orders during the remainder of fiscal 1998. While we do not believe that the immediate financial impact of these commercial adoptions of our Wearlon(R) technology will be significant in the very near term, we believe that we will see increased product sales from these and other customers during the next 12-18 months which will contribute to Wearlon's(R) growing commercial revenue stream." Decora Industries Inc. engaged in the development, manufacturing and sales world-wide of consumer decorative products and of specialty industrial products, utilizing its proprietary pressure-sensitive, self-adhesive, release and protective coatings technologies, which includes Decora's proprietary Wearlon(R) release coating systems. -0- NOTE: Information about Decora Industries, Inc. is available on Decora's World Wide Web site on the Internet located at http://www.decoraind.com. -0- NOTE: Statements included within this press release which are not historical in nature constitute forward looking statements for the purposes of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provided by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that such statements involve uncertainties regarding actual results which could differ from those described herein. These factors include fluctuation Fluctuation A price or interest rate change. in further product penetration to new markets or in fluctuation in core product sales. Careful consideration should be given to cautionary statements made in the Company's most recently filed SEC documents, in particular the Company's 10-K and previous 10-Qs. -0-
DECORA INDUSTRIES, INC.
Consolidated Statement of Operations
(In thousands except per share data)
Quarter Ended June 30,
1997 1996
Net Sales $ 9,147 $10,138
Cost of goods sold 6,556 7,694
Gross profit 2,591 2,444
Marketing, general and administrative 1,340 1,262
Operating Income 1,251 1,182
Interest expense 416 633
Income before taxes 835 549
Provision for income taxes 251 29
Net Income $ 584 $ 520
Net income per common share $0.02 $0.02
Average shares of common stock used in
computation of net income per share 35,678 34,464
CONTACT: Decora Industries, Inc. Timothy N. Burditt (518) 747-6255 or Kehoe, White, Savage & Co., Inc. John P. Kehoe/Van Negris (212) 888-1616 |
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