Dalton, GA, December 14, 2005--Tandus Group, Inc., announced its financial results for the third quarter (13 weeks) and year-to-date (39 weeks) ended October 29, 2005.
The company has substantially completed the transfer of its broadloom production processes from the Santa Ana, California facility to its Truro, Nova Scotia facility (the "facility maximization project"). The Adjusted EBITDA reconciliation at the end of this release highlights the impact of the costs incurred related to this project.
Net sales for the thirteen weeks ended October 29, 2005 were $81.7 million, a decrease of 1.0% from the $82.5 million for the thirteen weeks ended October 30, 2004. Net sales of the Company's Floorcoverings segment were $75.3 million for the thirteen weeks ended October 29, 2005 as compared to $76.8 million for the thirteen weeks ended October 30, 2004, a decrease of $1.5 million or 2.0%, primarily attributable to the North American operations.
Within these operations, the decrease in the Floorcoverings segment's net sales was primarily attributable to a 16.4% decrease in broadloom sales combined with a 6.1% decrease in sales of 6-foot roll goods. Partially offsetting these declines was a 19.8% increase in the sales of carpet tiles.
Contributing to the decline in broadloom sales were operational complications associated with the company's planned closure of its manufacturing facility in Santa Ana, California, and transfer of production to its existing Truro, Nova Scotia facility ("facility maximization project").
From an end-use perspective, the current quarter results reflect a 5.6% decrease in core markets (educational, healthcare and government) and a 0.1% decrease in corporate sales, which includes retail.
Net sales of the Extrusion segment were $6.4 million for the thirteen weeks ended October 29, 2005 as compared to $5.7 million for the thirteen weeks ended October 30, 2004, an increase of $0.7 million or 12.3%.
Adjusted EBITDA was $6.8 million for the thirteen weeks ended October 29, 2005 as compared to $13.5 million in the thirteen weeks ended October 30, 2004.
Net sales for the thirty-nine weeks ended October 29, 2005 were $245.1 million, a decrease of 5.7% from the $259.8 million for the thirty-nine weeks ended October 30, 2004.
Net sales of the company's Floorcoverings segment were $225.7 million for the thirty-nine weeks ended October 29, 2005 as compared to $241.8 million for the thirty-nine weeks ended October 30, 2004, a decrease of $16.1 million or 6.7%, primarily attributable to the North American operations.
Within these operations, the decrease in the Floorcoverings segment's net sales was primarily attributable to a 17.7% decrease in broadloom sales combined with a 9.4% decrease in sales of 6-foot roll goods. Partially offsetting these declines was a 10.7% increase in the sales of carpet tiles.
As noted above, contributing to the decline in broadloom sales were operational complications associated with the facility maximization project. From an end-use perspective, the current thirty-nine weeks results reflect a 7.1% decrease in core market sales and an 8.1% decline in corporate sales, which includes retail.
Net sales of the Extrusion segment were $19.4 million for the thirty-nine weeks ended October 29, 2005 as compared to $18.0 million for the thirty-nine weeks ended October 30, 2004, an increase of $1.4 million or 7.8%.
Adjusted EBITDA for the period decreased to $28.1 million from $43.7 million in the thirty-nine weeks ended October 30, 2004. As a percentage of sales, Adjusted EBITDA was 11.5% in the thirty-nine weeks ended October 29, 2005, compared to 16.8% in the thirty-nine weeks ended October 30, 2004. The decrease in the thirty-nine weeks ended October 29, 2005 was principally due to lower sales volume in the Floorcoverings segment. In addition, the company has withdrawn from its Chroma partnership and no longer receives dividends from that investment.
