Dalton, GA, September 14--Tandus Group, Inc., which includes Collins & Aikman Floorcoverings, Inc. and its subsidiaries, announced its financial results for the second quarter (13 weeks) and year-to-date (26 weeks) ending July 30, 2005.
Consolidated net sales for the 13 weeks ending July 30, 2005 were $95.1 million, a decrease of 4.5% from the $99.6 million for the 13 weeks ending July 31, 2004. Net sales of the company's Floorcoverings segment were $88.3 million for the 13 weeks ending July 30, 2005 as compared to $94.9 million for the 13 weeks ending July 31, 2004, a decrease of $6.6 million or 7.0%, primarily attributable to the North American operations. Within these operations, the decrease in the Floorcoverings segment's net sales was primarily attributable to a 17.5% decrease in broadloom sales combined with a 5.2% decrease in sales of 6-foot roll goods. Contributing to the decline in broadloom sales were operational complications associated with the facility maximization project. Partially offsetting these declines was a 7.7% increase in the sales of carpet tiles. From an end use perspective, the current quarter results reflect a 0.5% decrease in core markets (Educational, Healthcare and Government) and an 18.1% decrease in corporate sales, which includes retail. Net sales of the Extrusion segment were $6.8 million for the 13 weeks ending July 30, 2005 as compared to $4.7 million for the 13 weeks ending July 31, 2004, an increase of $2.1 million or 44.7%. The increase in sales for the Extrusion segment was due to higher sales to seven of the Extrusion segment's ten largest customers during the current quarter.
Cost of goods sold was $63.7 million for the 13 weeks ending July 30, 2005 as compared to $60.6 million in the 13 weeks ending July 31, 2004. As a percentage of sales, these costs increased to 67.0% from 60.8% for the 13 weeks ending July 30, 2005 and July 31, 2004, respectively. The percentage increase was primarily due to the inclusion in the 2005 period expenses of $2.2 million related to the company's facility maximization project. Excluding the facility maximization costs, cost of goods sold for the thirteen weeks ended July 30, 2005 were $61.5 million or 64.7%. In addition, the company has also experienced a significant increase in the price of several raw materials, including yarns, resins, and other agents and chemicals.
Adjusted EBITDA was $16.7 million for the 13weeks ending July 30, 2005 as compared to $22.1 million in the 13 weeks ending July 31, 2004. The decrease in adjusted EBITDA was primarily due to the reduction in sales volume and higher raw material costs in the company's Floorcoverings segment. In addition, the company has withdrawn from its Chroma partnership and no longer receives dividends from that investment.
Consolidated net sales for the 26 weeks ending July 30, 2005 were $163.4 million, a decrease of 7.8% from the $177.3 million for the 26 weeks ending July 31, 2004. Net sales of the company's Floorcoverings segment were $150.4 million for the 26 weeks ending July 30, 2005 as compared to $164.9 million for the twenty-six weeks ended July 31, 2004, a decrease of $14.5 million or 8.8%, primarily attributable to the North American operations. Within these operations, the decrease in the Floorcoverings segment's net sales was primarily attributable to an 18.1% decrease in broadloom sales combined with a 10.6% decrease in sales of 6-foot roll goods. Contributing to the decline in broadloom sales were operational complications associated with the facility maximization project discussed previously. Partially offsetting these declines was a 5.9% increase in the sales of carpet tiles. From an end use perspective, the current twenty-six weeks results reflect a 7.6% decrease in core market sales, principally driven by lower sales in Healthcare and Government.
