Dalton, GA, Apr. 30--Tandus Group, Inc., which includes Collins & Aikman Floorcoverings, Inc. and Subsidiaries, reports financial results for the fourth quarter and year ended January 31, 2004.
Net sales for the year ended January 31, 2004 (fiscal 2003) were $311.1 million, a 3.1% decrease from $321.2 million in the year ended January 25, 2003 (fiscal 2002).
Net sales of the company's floorcovering segment decreased 5% to $283.0 million for fiscal 2003. The decrease in the floorcovering segment's net sales for fiscal 2003 was due to slow demand throughout the specified commercial market in the United States. The company's extrusion segment's net sales increased 21.3% to $28.0 million due to the inclusion of a full year of the extrusion operation. The extrusion operation was acquired May 8, 2002.
Selling, general and administrative expenses were $82.2 million for fiscal 2003 compared to $72.7 million for fiscal 2002. Included in the fiscal 2003 amount are a $2.6 million non-cash impairment charge related to a supply agreement of the extrusion segment, $1.5 million for a lawsuit judgment and related expenses, $1.0 million of costs associated with an unsuccessful acquisition and increased amortization of $0.8 million. The remaining difference was primarily due to an increase in salaries and benefits, sampling costs and marketing and promotional expenses were related to the company's new selling strategy that was implemented beginning January 26, 2003.
Net income for fiscal 2003 was $1.2 million; a $4.6 million or 78.7% decrease from $5.8 million in fiscal 2002 primarily due to the factors described above.
Adjusted EBITDA was $42.7 million for fiscal 2003 compared to $53.8 million for fiscal 2002. This decline relates to the lower revenues of the floorcovering segment and the costs associated with the company's selling strategy that was implemented beginning on January 26, 2003. As a percentage of net sales, Adjusted EBITDA was 13.7% for fiscal 2003 and 16.8% for fiscal 2002.
Net sales for the fourth quarter ended January 31, 2004 were $71.4 million, a 1.2% increase from $70.6 million in the same quarter of fiscal 2002. Net sales for the company's floorcovering segment increased 2.4% to $64.9 million for the fourth quarter of fiscal 2003. The company's extrusion segment net sales decreased 9.7% to $6.5 million during the fourth quarter of fiscal 2003.
Selling, general and administrative expenses for the fourth quarter of fiscal 2003 were $23.6 million, compared to $18.5 million for the same quarter of fiscal 2002. Included in the fiscal 2003 amount is a $2.6 million non-cash impairment charge related to a supply agreement of the extrusion segment, $1.0 million for a lawsuit judgment and related legal expenses, and $0.2 million of costs associated with an unsuccessful acquisition. The remaining difference was primarily related an increase in costs related to the Company's new selling strategy that was implemented beginning January 26, 2003.
The net loss for the fourth quarter ended January 31, 2004 was $(3.8) million as compared to a net loss of $(0.9) million in the same quarter of fiscal 2002, primarily due to the factors mentioned above.
Adjusted EBITDA for the fourth quarter of fiscal 2003 was $4.9 million, compared to $8.9 million for the same quarter of fiscal 2002. This decline relates to lower profitability of the extrusion segment, increased legal and professional fees and the lawsuit judgment, and costs associated with the company's selling strategy that was implemented beginning January 26, 2003.
At January 31, 2004, the company had total debt of $209.3 million, of which $1.8 million was current. Total cash and cash equivalents were $11.0 million and revolver borrowing availability was $48.9 million as of January 31, 2004. The company voluntarily prepaid $20.0 million of its term loans during fiscal 2003, leaving a balance of $31.0 million outstanding.
