Dalton, GA, May 2--Tandus Group, Inc. reported its financial results for the fourth quarter and 2004 fiscal year ended January 29, 2005 for its Collins & Aikman Floorcoverings, Inc. and Subsidiaries.
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.
Net sales for the year ended January 29, 2005 ("fiscal 2004") were $340.5 million, an increase of $29.4 million or 9.5%, from $311.1 million in the year ending January 31, 2004 ("fiscal 2003"). Net sales of the company's floorcovering segment were $317.2 million for fiscal 2004 as compared to $283.0 million for fiscal 2003, an increase of $34.2 million or 12.1%. Net sales of the extrusion segment were $23.3 million for fiscal 2004 as compared to $28.0 million for 2003, a decrease of $4.8 million or 17.1%.
Selling, general and administrative expenses in fiscal 2004 were $78.2 million, an increase of $4.9 million or 6.6% from $73.4 million for fiscal 2003. However, as a percentage of sales, these expenses were 23.0% for fiscal 2004 as compared to 23.6% for fiscal 2003. Included in selling, general and administrative expenses for the fiscal 2004 period are expenses of $1.4 million related to the company's facility maximization project. Adjusted EBITDA for fiscal 2004 was $51.0 million compared to $42.7 million in fiscal 2003, an increase of $8.3 million or 19.5%. As a percentage of sales, Adjusted EBITDA improved to 15.0% in fiscal 2004 compared to 13.7% in fiscal 2003.
Net sales for the fourth quarter ended January 29, 2005 were $80.7 million, a 13.0% increase from $71.4 million in the fourth quarter ended January 31, 2004. Net sales for the company's floorcovering segment increased 16.3% to $75.5 million for the fourth quarter of fiscal 2004. The company's extrusion segment net sales decreased 19.4% to $5.2 million during the fourth quarter of fiscal 2004.
Selling, general, and administrative expenses for the fourth quarter of fiscal 2004 were $19.5 million, compared to $19.4 million for the same quarter of fiscal 2003. Included in selling, general and administrative expenses for the fiscal 2004 period are expenses of $0.7 million related to the company's facility maximization project. Adjusted EBITDA for the fourth quarter of fiscal 2004 was $7.3 million, compared to $4.9 million for the same quarter of fiscal 2003. As a percentage of sales, Adjusted EBITDA improved to 9.0% in fourth quarter of fiscal 2004 compared to 6.8% during the fourth quarter of fiscal 2003.
The company currently expects that this transition to a single broadloom manufacturing facility will be completed by the end of the company's second quarter. This expectation is one quarter later than previously disclosed and was slowed to accommodate the training required to bring the 150 new associates up to the required level in addition to the completion of manufacturing system enhancements. The firm has increased its total expected costs for the project to $9.4 million and expects that the benefits of the project will begin to impact the income statement principally in the last quarter of this fiscal year.
