Congoleum Swings to Loss in Second Quarter

Mercerville, NJ, Aug. 12, 2009--Congoleum Corporation reported a net loss for the second quarter of $942,000 versus net income of $212,000 a year ago.

The net loss per share was $0.11 compared with net income of $0.03 per share in the second quarter of 2008.

Sales for the quarter were $39.4 million, compared with sales of $47.2 million last year, a decrease of 16.6%.

Sales for the six months ended June 30, were $69.5 million, compared with sales of $94.9 million in the first six months of 2008. The net loss for the six months was $5.0 million, or $.61 per share, versus net income of $1.9 million, or $.23 per share, in the first six months of 2008.

"Our markets remained extremely weak in the second quarter, particularly manufactured housing," said Chairman of the Board Roger S. Marcus.

"While sales were up $9.2 million over the first quarter of 2009, this increase reflected seasonal factors and the stabilization of inventories in the distribution channel. Our distributors had reduced their inventories by over $4 million in the first quarter. While not yet improving, at least conditions seem to have bottomed out."

Marcus said the company's debtor-in-possession credit facility has been extended through the end of 2009, and Congoleum ended the quarter with $13.8 million in available cash and borrowing capacity, which should provide liquidity for the foreseeable future.

"We feel the market for the majority of our product lines has at least bottomed out," Marcus said.