-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KgM6V1zn3ChMVPh5zUEuzzkdymeaLiWdeCJCbZacOQgC+9sWiGZwZKQW/S5sqaBg jlOV0pwm9nbzhZskaaSOig== 0001275287-06-001179.txt : 20060301 0001275287-06-001179.hdr.sgml : 20060301 20060301153440 ACCESSION NUMBER: 0001275287-06-001179 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060228 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060301 DATE AS OF CHANGE: 20060301 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DECORATOR INDUSTRIES INC CENTRAL INDEX KEY: 0000027613 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS FABRICATED TEXTILE PRODUCTS [2390] IRS NUMBER: 251001433 STATE OF INCORPORATION: PA FISCAL YEAR END: 0102 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07753 FILM NUMBER: 06655417 BUSINESS ADDRESS: STREET 1: 10011 PINES BLVD SUITE 201 CITY: PEMBROKE PINES STATE: FL ZIP: 33024 BUSINESS PHONE: 3054368909 8-K 1 di4970.txt FORM 8-K ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): February 28, 2006 DECORATOR INDUSTRIES, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Pennsylvania 1-7753 25-1001433 -------------- ------------ ------------------- (State of (Commission (IRS Employer Incorporation) File Number) Identification No.) 10011 Pines Boulevard, Pembroke Pines, Florida 33024 ---------------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (954) 436-8909 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On February 28, 2006, registrant issued a press release announcing its financial results for the fiscal quarter and fiscal year ended December 31, 2005. A copy of the press release is furnished as Exhibit 99.1 to this report. The information in this report shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. Exhibit 99.1 Press release, dated February 28, 2006 issued by Decorator Industries, Inc. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DECORATOR INDUSTRIES, INC. (Registrant) Date: March 1, 2006 By: /s/ Michael K. Solomon ------------------------------ Michael K. Solomon Vice President and Principal Financial Officer EX-99.1 2 di4970ex991.txt EXHIBIT 99.1 Exhibit 99.1 DECORATOR INDUSTRIES REPORTS EARNINGS AND SALES FOR FISCAL YEAR 2005 PEMBROKE PINES, Fla., Feb. 28 /PRNewswire-FirstCall/ -- Decorator Industries, Inc. (Amex: DII) today reported that net income for the fiscal year ended December 31, 2005 was $1,364,814 or 46 cents per diluted share, compared with $1,394,698 or 47 cents per diluted share, for fiscal 2004. Net income for the fourth quarter of fiscal 2005 was $358,109, or 12 cents per diluted share, compared with $360,182, or 12 cents per diluted share in last year's fourth quarter. Sales for fiscal 2005 were $50,525,343 compared with $50,449,214 in the prior year. This quarter's sales increased to $12,220,836 from $11,212,821 in the fourth quarter of last year. Mr. Bassett, Chairman, stated: "Sales to our Recreational Vehicle (RV) customers were $28,621,000, a decrease of about 8% from fiscal 2004. RV sales for the fourth quarter were $7,043,000, an increase of about 10% compared with the same period a year ago. The reduction in our RV sales for fiscal 2005 was directly related to lower production of travel trailers and motor homes by our customers. The increase in our fourth quarter RV sales was due to our shipments of F.E.M.A. orders which accounted for about 14% of our RV sales. The RV industry reported that 2005 was the best year since 1978. Shipments, excluding F.E.M.A. units, increased to 384,000 or about 3.9% higher than the prior year. "Sales to our Manufactured Housing (MH) customers were $10,044,000, an increase of about 5% from fiscal 2004. MH sales for the fourth quarter were $2,269,000, a decline of about 6% from the fourth quarter a year ago. During the fourth quarter many of our MH customers produced F.E.M.A. units which did not require draperies. Industry MH shipments, excluding F.E.M.A. units, were essentially flat compared to the prior year and somewhat lower when compared to the same quarter last year. "Sales to our Hospitality customers were $11,860,000 which was an increase of 21% over the prior fiscal year. Hospitality sales for the fourth quarter were $2,909,000, a 20% increase from the same quarter a year ago. The lodging industry has reported increasing occupancy levels since 2003 and are approaching the historical record level of 69.9%, last reached in 2000. Further, the new construction pipeline is the highest since 2000 and is growing at a rapid pace. "The gross profit for fiscal years 2005 and 2004 was 20.3 and 20.1%, respectively. The respective gross profit for the fourth quarter of 2005 and 2004 was 21.1% and 22.0%. "For fiscal years 2005 and 2004 selling and administrative expenses were $8,148,485, or 16.1% of sales, and $7,798,898, or 15.5% of sales, respectively. The respective selling and administrative expenses for the fourth quarter of 2005 and 2004 were $2,064,475, or 16.9% of sales and $1,868,759 or 16.7% of sales. Most of the yearly increase is attributable to a decision to convert the Company's ERP system to a different software platform. Impairment of the old system resulted in a one-time $165,647 pretax charge. Without this charge, selling and administrative expenses as a percentage of sales would have been 15.8% for fiscal 2005. Increased commission expense due to increased hospitality industry sales was also another major reason for the increase. "Our financial condition remains strong, stockholders' equity increased to $17,088,012, a new high. Long-term debt was $1,536,754 or 8.25% of total capitalization. Working capital increased to $6,092,349 from $4,167,876 a year ago. The Company had no borrowings against its $5,000,000 line of credit at year end. "We will continue to pursue opportunities for growth from both internal expansion and acquisitions. We are committed to increase our market share and productivity, the long-term drivers of our past successes. We are resolved to being the supplier of choice in each of our markets we serve." 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 lodging industry. THE FIGURES ARE AS FOLLOWS:
CONDENSED STATEMENT OF INCOME --------------------------------------------------------- FOR QUARTERS ENDED: FOR YEARS ENDED: (UNAUDITED) (AUDITED) --------------------------- --------------------------- December 31, January 1, December 31, January 1, 2005 2005 2005 2005 ------------ ------------ ------------ ------------ NET SALES $ 12,220,836 $ 11,212,821 $ 50,525,343 $ 50,449,214 NET INCOME $ 358,109 $ 360,182 $ 1,364,814 $ 1,394,698 EARNINGS PER SHARE: BASIC $ 0.12 $ 0.13 $ 0.47 $ 0.50 DILUTED $ 0.12 $ 0.12 $ 0.46 $ 0.47 WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING 2,913,625 2,826,876 2,882,196 2,816,661
CONDENSED BALANCE SHEET --------------------------- DECEMBER 31, JANUARY 1, 2005 2005 ------------ ------------ CASH AND EQUIVALENTS $ 490,377 $ 730,539 ACCOUNTS RECEIVABLE 4,574,415 3,464,674 INVENTORIES 5,800,553 5,113,651 OTHER CURRENT ASSETS 311,603 588,853 TOTAL CURRENT ASSETS 11,176,948 9,897,717 NET PROPERTY AND EQUIPMENT 7,431,823 7,857,743 OTHER ASSETS 5,685,594 6,206,617 TOTAL ASSETS $ 24,294,365 $ 23,962,077 TOTAL CURRENT LIABILITIES $ 5,084,599 $ 5,729,841 LONG-TERM DEBT 1,536,754 1,752,568 DEFERRED TAXES 585,000 680,000 STOCKHOLDERS' EQUITY 17,088,012 15,799,668 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 24,294,365 $ 23,962,077 SOURCE Decorator Industries, Inc. -----END PRIVACY-ENHANCED MESSAGE-----