Dalton, GA, December 12, 2006--Tandus Group, in the third quarter reported adjusted EBITDA that increased to $12.6 million from $6.8 million for the same period of last year.
As a percentage of sales, adjusted EBITDA was 14.7% for the third quarter of 2006 compared to 8.3% in the third quarter of 2005. The increase was principally due to higher sales volume in the Floorcoverings segment, coupled with the achievement of certain cost containment initiatives.
Net sales for the third quarter were $85.6 million, an increase of 4.8% from $81.7 million for the same period of the prior year. Net sales of the company's floorcoverings segment were $80.2 million for the quarter as compared to $75.3 million for the third quarter of 2005, an increase of $4.9 million or 6.5%, primarily attributable to the North American operations.
The company’s floorcoverings segment's net sales experienced a 3.1% increase in broadloom sales combined with a 5.5% 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 1.2% and 11.2%, respectively. The overall increase in the floorcoverings segment sales is primarily volume driven across all of its markets coupled with an increase in average selling prices.
Net sales of the extrusion segment were $5.4 million in the third quarter for compared to $6.4 million for the same period of the prior year, a decrease of $1.0 million or 15.6%. The decrease in sales for the extrusion segment was due to lower sales volume.
Adjusted EBITDA for the first nine months of 2006 increased to $39.9 million from $28.1 million same period of 2005. As a percentage of sales, adjusted EBITDA was 14.6% for the 2006 year-to-date period compared to 11.5% in the related 2005 period. The increase was principally due to higher sales volume in the Floorcoverings segment.
Net sales for the nine months of 2006 were $274.4 million, an increase of 12.0% from $245.1 million for the same period of 2005. Net sales of the company's floorcoverings segment were $254.3 million for the period compared to $225.7 million for the same period of the prior year an increase of $28.6 million or 12.7%, primarily attributable to the North American operations. Within these operations, the company's Floorcoverings segment's net sales experienced a 1.3% increase in broadloom sales combined with a 17.8% increase in sales of structure-backed carpets (six-foot and carpet tile).
The current period results reflect an increase in both institutional sales (healthcare, education and government) and corporate sales, including retail, of 9.9% and 12.8%, respectively. The overall increase in the floorcoverings segment sales is primarily volume driven across all of its markets coupled with increases in average selling prices. Net sales of the extrusion segment were $20.2 million for the thirty-nine weeks ended October 28, 2006 as compared to $19.4 million for the thirty-nine weeks ended October 29, 2005, an increase of $0.8 million or 4.1%. The increase in sales for the extrusion segment was due to overall higher demand.
