Dalton, GA, June 13, 2006--Tandus Group, Inc., which includes Collins & Aikman Floorcoverings, Inc., announces its financial results for the first quarter ended April 29, 2006.
Adjusted EBITDA was $6.6 million for the thirteen weeks ended April 29, 2006 as compared to $4.6 million for the thirteen weeks ended April 30, 2005. As a percentage of sales, Adjusted EBITDA was 8.2% in the 2006 period compared to 6.7% in the prior year period.
Net sales for the thirteen weeks ended April 29, 2006 were $80.7 million, an increase of 18.2% from $68.3 million for the thirteen weeks ended April 30, 2005. Net sales of the Company's Floorcoverings segment were $73.1 million for the thirteen weeks ended April 29, 2006 as compared to $62.1 million for the thirteen weeks ended April 30, 2005, an increase of $11.0 million or 17.7%, primarily attributable to the North American operations.
Within these operations, the company's Floorcoverings segment's net sales experienced a 14.5% increase in broadloom sales combined with a 17.9% increase in sales of structure-backed carpets (six-foot and carpet tile).
The current quarter results reflect an increase in both Institutional sales (Healthcare, Education and Government) and Corporate sales, including Retail, of 17.9% and 15.6%, respectively. The overall increase in the Floorcoverings segment sales is primarily volume driven across all of its markets. In addition, in the thirteen weeks ended April 30, 2005, the Floorcoverings segment experienced lower sales in part due to complications related to the Facility Maximization.
Net sales of the Extrusion segment were $7.6 million for the thirteen weeks ended April 29, 2006 as compared to $6.2 million for the thirteen weeks ended April 30, 2005, an increase of $1.4 million or 22.6%. The increase in sales for the Extrusion segment was due to overall higher demand from the Extrusion segment's external customers.
Cost of goods sold was $56.1 million, or 69.5% of sales, for the thirteen weeks ended April 29, 2006 as compared to $49.3 million, or 72.2% of sales, for the thirteen weeks ended April 30, 2005. The increase in cost of goods sold was primarily due to increased sales. In addition, the Company experienced increases in the prices of several key raw materials in the latter half of fiscal 2005 which have not been fully absorbed in the market through increased selling prices. Included in the 2005 period expenses was $2.8 million of costs related to the Facility Maximization. Excluding these costs, cost of goods sold for the thirteen weeks ended April 30, 2005 was $46.5 million, or 68.1% of sales.
Selling, general and administrative expenses for the thirteen weeks ended April 29, 2006 were $20.8 million, an increase of 3.5% from $20.1 million for the thirteen weeks ended April 30, 2005. As a percentage of sales, total selling, general and administrative costs were 25.7% and 29.5% for the thirteen weeks ended April 29, 2006 and April 30, 2005, respectively.
During the 2006 period, the Company incurred an increase of $1.8 million in legal expense and professional services of which $0.4 million relates to an award of plaintiff legal fees in a certain litigation verdict, increased commissions of $0.9 million and an increase in its samples expense of $0.7 million. These increases were partially offset by lower salaries, taxes and benefits of $1.2 million and a decrease in company meetings expense of $0.6 million. In addition, the Company experienced an increase in the foreign currency transaction gain of $0.2 million. Included in the 2005 period expense was $0.3 million of costs related to the facility maximization.
For the thirteen weeks ended April 29, 2006, capital expenditures were $2.6 million, compared to $3.8 million for the thirteen weeks ended April 30, 2005.
