Dalton, GA, December 13--Tandus Group, Inc. reported results for the third quarter for its Collins & Aikman Floorcoverings, Inc. and subsidiaries.
Revenues for the 13 weeks ended October 30, 2004, increased 11.3% to $82.5 million from $74.1 million for the prior year. Selling, general and administrative expenses for the 13 weeks ended October 30, 2004, were $16.9 million compared to $17.1 million for the prior year.
Adjusted EBITDA for the 13 weeks ended October 30, 2004, was $13.5 million compared to $9.4 million for the prior year. As a percentage of sales, Adjusted EBITDA margin for the 13 weeks ended October 30, 2004, was 16.4% compared to 12.7% for the prior year.
The increase in revenues was due to higher demand throughout the U.S. specified commercial market; in particular the corporate office market was up 10.1% from the prior year.
The company's institutional end markets of education, healthcare, and government were up 14.5% from the prior year. Selling, general and administrative expenses decreased primarily due to lower legal and professional fees of $1.0 million, lower marketing and promotional expenses of $1.2 million, partially offset by increased salaries, taxes and benefits of $1.9 million.
Revenues for the 39 weeks ended October 30, 2004, increased 8.4% to $259.8 million compared to $239.6 million for the prior year. Selling, general and administrative expenses for the 39 weeks ended October 30, 2004, were $58.0 million compared to $54.0 million for the prior year.
Adjusted EBITDA for the 39 weeks ended October 30, 2004, was $43.7 million compared to $37.8 million for the prior year. The Adjusted EBITDA for the 39 weeks ended October 25, 2003 includes a special dividend from the company's Chroma partnership of $1.8 million. As a percentage of sales, Adjusted EBITDA margin for the 39 weeks ended October 30, 2004, was 16.8% compared to 15.8% for the prior year.
The increase in revenues was due to higher demand throughout the U.S. specified commercial market, in particular the corporate office market was up 19.2% from the prior year. The company's institutional end markets of education, healthcare, and government were up 9.2% from the prior year.
Selling, general and administrative expenses increased primarily due to increased salaries and benefits of $3.7 million, commissions of $0.5 million, and foreign currency expense of $1.2 million partially offset by lower legal and professional expenses of $1.3 million.
Mac Bridger, CEO of Tandus stated, "The third quarter continued positive trends across all markets. We continue to be encouraged by the momentum created by our Tandus selling strategy which is attracting new customers and increasing our market share.
"Additionally, our Adjusted EBITDA margins have remained strong and continue to highlight the impact of incremental volume in our manufacturing facilities."
As previously announced the company is consolidating its broadloom production from the Santa Ana, California facility to its Truro, Nova Scotia facility.
