Dalton, GA, June 15--Tandus Group, Inc., which includes Collins & Aikman Floorcoverings, Inc., and Subsidiaries, announced its financial results for the first quarter (13 weeks) ended April 30, 2005.
As previously announced, the company is consolidating its broadloom production from the Santa Ana, California facility to its Truro, Nova Scotia facility (the "facility maximization project"). The Adjusted EBITDA reconciliation at the end of the release highlights the impact of these costs.
Consolidated net sales for the thirteen weeks ended May 1, 2004 decreased 12.1% to $68.3 million as compared to $77.7 million for the thirteen weeks ended May 1, 2004. Net sales of the company's floorcovering segment decreased 11.3% to $62.1 million for the thirteen weeks ended April 30, 2005 versus the $70.0 million for the thirteen weeks ended May 1, 2004. The reduction in sales reflects the floorcovering segment's unusually strong first quarter during fiscal 2004 versus 2005 due to early education orders in the prior period. The current quarter was impacted by lower government and healthcare sales as compared to the previous year.
Net sales of the Extrusion segment were $6.2 million for the thirteen weeks ended April 30, 2005 as compared to $7.7 million for the prior year period, reflecting increasing internal usage.
Cost of goods sold was $49.3 million for the thirteen weeks ended April 30, 2005 as compared to $51.4 million in the thirteen weeks ended May 1, 2004. As a percentage of sales, these costs increased to 72.2% from 66.2% for the thirteen weeks ended April 30, 2005 and May 1, 2004, respectively. The percentage increase in the current period was impacted by the inclusion of $2.8 million in costs related to the company's facility maximization project. Excluding the facility maximization costs, cost of goods sold for the thirteen weeks ended April 30, 2005 were $46.5 million or 68.1%.
Selling, general and administrative expenses were $20.1 million for the thirteen weeks ended April 30, 2005 compared to $21.0 million for the thirteen weeks ended May 1, 2004.
The April 2005 quarter includes $0.3 million of selling, general and administrative costs related to the facility maximiziation project. Of the remaining decrease, professional services decreased by $1.1 million partially offset by higher benefit costs of $0.2 million. Combined selling and marketing expenses were flat year over year. As a percentage of sales, total selling, general and administrative costs were 29.5% and 27.0% for the thirteen weeks ended April 30, 2005 and May 1, 2004, respectively.
Adjusted EBITDA was $4.6 million for the thirteen weeks ended April 30, 2005 as compared to $8.1 million in the thirteen weeks ended May 1, 2004. The decrease in adjusted EBITDA was primarily due primarily due to the reduction in sales between the current year period and the comparable prior year quarter.
As of April 30, 2005, the company had total debt of $208.5 million, of which $0.7 million was current. Total cash and cash equivalents were $8.5 million and revolver borrowing availability was $45.7 million. The company was in compliance with all debt covenants as of April 30, 2005. For the thirteen weeks ended April 30, 2005, capital expenditures were $3.7 million, compared to $1.2 million for the thirteen weeks ended May 1, 2004.
