Pembroke Pines, Fla.-based furniture supplier Decorator Industries Inc. announced that it filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the Southern District of Florida. The company is taking this action to reduce its cost structure, conserve cash and return to profitability. The company has retained Genovese, Joblove & Battista, P.A. as debtor’s bankruptcy counsel.
“Our company made significant cost reductions over the last three years to adjust to the declining sales,” said Decorator President and CEO William A. Johnson. “Despite these efforts, management and the board of directors have decided to utilize the Chapter 11 restructuring process to address certain costs in a timely and orderly fashion that could not be dealt with outside of Chapter 11.”
The company emphasized that daily operations will continue as normal throughout the restructuring process. The employees will continue to be paid and receive the same benefits as before the filing. The customers will continue to receive the high quality products they expect, when they need them and with exceptional service. The company will continue to honor all warranty programs, rebate programs and customer deposits.
Decorator Industries will have sufficient liquidity after taking this action that it will not be necessary to seek costly debtor-in-possession financing.
“This was a difficult decision but necessary to preserve the continuity of the business for our customers and the livelihood of 225 employees,” said Johnson.
Pembroke Pines, Fla.-based Decorator Industries, Inc., a leading supplier of interior furnishings for the recreational vehicle, hospitality, healthcare and manufactured housing industries, has announced the retirement of three long-time board members at its recent annual meeting on June 1.
• Joseph N. Ellis: A board member since 1993 who founded LaSalle-Deitch in 1963, a distributor of products for the manufactured housing and recreational vehicle industries, and served as its president, CEO and chairman until his retirement in 1992.
• Thomas L. Dusthimer: A board member since 1997 who served as a consultant and director to Key Bank (Elkhart, Ind., District) until his retirement in 1992.
• Ellen Downey: A board member since 1997 was employed by Ryder System Inc., serving in various financial positions until her retirement in 1993.
Bill Johnson, president of Decorator Industries, noted, “I know this was a difficult decision for these directors, but with the reduced sales and desire to reduce costs they felt it was the in the best interest of the company if they stepped down at this time, allowing the company to reduce the overall size of the board to five members.
“The company greatly appreciates all of their contributions and efforts over these many years. I personally would like to thank them for their guidance and wisdom during this difficult three year period.”
The above action created a vacancy of one seat on the board, which was filled by appointing Chris Sansone of Robotti and Co. Chris has been a research analyst at Robotti since 2003 and has closely followed the manufactured housing industry. He is also the general partner and portfolio manager of Sansone Partners LP, a fund launched in July, 2007.
“Robotti and Co. has been a long time investor in our company as well as the overall manufactured housing industry and we welcome their representative Chris Sansone to the board,” Johnson said. “I know Robotti and Co. believes just as I do in the long-term prospects of the manufactured housing industry and they have demonstrated this by continuing to invest in the industry.”
Decorator Industries will be participating in the 2011 Hospitality Design Exposition and Conference at the Center of Design & Innovation on May 18-20 in Las Vegas, Nev.
“This is the premier trade show for hospitality design professionals — and we will be amidst all the action,” the company stated in a news release. “We look forward to being inspired and showcasing our interior furnishings for the hospitality, healthcare, manufactured housing and recreational vehicle industries.”
Decorator Industries is based in Pembroke Pines, Fla.
The HD Expo was established in 1992, and connects buyers of design products with businesses that offer the newest and latest in hospitality design. Over 900 exhibitors will set up booths to feature their hospitality products and services. The event is huge, bringing manufacturers and artisans offering design solutions for everything from hotels, restaurants and cruise ships to conference centers, spas and nursing home facilities.
The HD Expo expects over 7,000 attendees, all coming for the chance to be among the first to see new products before they hit the market. In order to stay on the cutting-edge of design innovation, the expo will also host LU/CEU accredited sessions focusing on all aspects of hospitality design. The seminars will provide fresh ideas, creative solutions and address the latest issues affecting the industry.
The HD Expo is sponsored by Hospitality Design magazine and produced by Nielson Expositions, a part of the Nielson company. There will also be a number of activities, like the IIDA/HD Product Design Competition, a partnership between the International Interior Design Association and Hospitality Design magazine, to honor creative advancements in the hospitality design industry.
Decorator Industries Inc. has terminated its registration under Section 12(g) of the Securities Exchange Act of 1934, suspending its duty to file reports under Section 13 and 15(d) of the Securities Exchange Act of 1934.
The company will continue to provide its shareholders with annual audited financial statements prior to the Annual Meeting of Stockholders. However, it will discontinue the release and publication of quarterly financial information, the company announced. Proxy cards and annual reports will be made available to all shareholders in the next couple of weeks ahead of the June 1 annual meeting.
“This was the final action needed to position the company to capitalize on the recovery of our existing markets,” William Johnston, CEO, stated. “We saw the RV market rebound somewhat in 2010 and have begun to see recent signs of a recovery in the hospitality market. However, based on continued uncertainties in the overall economy such as high unemployment, increasing commodity prices and large numbers of home foreclosures, we know the rebound will be slow and uneven.
“The recent modification we made to our lending agreement with Wells Fargo strengthened our balance sheet and allows us to focus more of our attention on returning the company to its long history of profitability. This will be achieved to some extent through organic growth from our existing markets. One recent initiative to jump start sales was the release of our new website in an effort to leverage the internet to expand our visibility and better market our capabilities.
“In addition, we will return to our past practice of seeking growth through acquisition. During the recession we have seen and expect to continue seeing opportunities arise that could provide the company with additional sales volume, human capital or an entirely new product or market.
“To conclude, I want to acknowledge the hard work and commitment of our employees. I believe the longevity we have among the management ranks has been instrumental in weathering the recession. In addition, these people were an integral part of our past successes. For this reason I am confident we will once again provide a strong return to our stockholders.”
Decorator Industries Inc., a supplier of interior furnishings for the hospitality, healthcare, manufactured housing and recreational vehicle industries, officially debuted a new website on March 11. The new site utilizes advanced design for an overall more modern and appealing website at www.DecoratorIndustries.com.
The new site is fully search-optimized, allowing users to find the information they’re looking for more quickly and easily, according to a news release. The user-friendliness and functionality have undergone a complete overhaul, resulting in a more direct and clear path to what each individual visitor is looking for, a convenience that is sure to result in new and return business. The overall visual appeal of the site has been considerably improved, and features more information about the products and services offered to each individual industry.
Social media links, including Facebook, Twitter, LinkedIn and YouTube, have also been added to the homepage. There is also now a “Request A Quote” form that users may fill out to instantly receive a free quote, as well as a sign-up to receive newsletters that include information on exclusive offers, news and events. Along with all of the new features, the site will now have its own blog, with news and information about the company as well as industry news.
Bill Johnson, president of Decorator Industries, noted, “Our site is extremely functional and provides a broader picture of the company’s capabilities in each of our markets with one easy to use interface.”
DecoratorIndustries.com now has specific, detailed information on all of the featured products for the hospitality, healthcare, manufactured housing and recreational vehicle industries. Users can even view all fabric swatches in order to decide which best fits their desired design. For example:
- Recreational Vehicles – Decorator Industries is a leading supplier of pleated shades to the Recreational Vehicle Industry. With the improved website, in this section visitors may browse the different types of shades, accessories and fabrics for both manufacturers and aftermarket manufacturers. http://www.decoratorindustries.com/recreational-vehicles.php
Decorator Industries Inc., founded in 1953, designs, manufactures and sells a broad range of interior furnishings, principally draperies, curtains, valance boards, shades, blinds, bedspreads, comforters, pillows, cushions and cubicle curtains. These products are sold to the hospitality (motels/hotels) and healthcare markets either through distributors or directly to the customers and to the original equipment manufacturers of the manufactured housing and recreational vehicles markets.
The common stock of Decorator Industries Inc. is no longer traded on the NYSE Amex.
As of today (Dec. 22), the company, symbol DII, trades on the “Grey Market.”
As previously announced, the Pembroke Pines, Fla.-based RV supply firm decided to be delisted from the public exchange as a cost-saving matter and deregister its common stock under the Securities Exchange Act of 1934.
Decorator Industries remains a public company as it continues to have stockholders. However, it no longer must conform to certain regulations, including quarterly reporting of its financial results to the general public.
Decorator Industries Inc. announced today (Dec. 16) that NYSE/AMEX has notified the company that it will lift, effective immediately, the trading halt in the company’s common stock.
The Pembroke Pines, Fla.-based RV supplier has filed its 10-Q for the third quarter ended Oct. 2 and is current with its Securities and Exchange Commission (SEC) filing obligations and is in compliance with all NYSE Amex listing standards, according to a news release. The exchange will be lifting the trading halt as a result of the company’s compliance.
As previously announced, the company, as a cost-saving matter, intends to delist its common stock from AMEX and deregister its common stock under the Securities Exchange Act of 1934. The delisting will be effective the morning Dec. 21.
Decorator Industries Inc. is in its best financial position in months as it moves ahead on plans to delists its common stock on a public exchange, Bill Johnson, president and CEO, reports.
Johnson told RVBUSINESS.com on Tuesday (Dec. 14) that the Pembroke Pines, Fla.-based supplier to the RV, manufactured housing and hospitality industries is coming off several positive developments, including a 53% increase in RV sales in 2010, which is pretty much on key with a general industry upswing.
Decorator is also reporting a significant reduction in debt with Wells Fargo from $3.1 million down to $400,000.
“For the last four months,” said Johnson, “the company has been working extremely hard on fixing its corporate structure and expenses. We have accomplished the following:
- $300,000 annual cash savings related to Wells Fargo debt reduction.
- $200,000 annual cash savings related to delisting the public company.
- $300,000 annual cash savings related to an employment agreement.
“All of the above is in addition to $1.1 million we have saved already in 2010 and over $4 million since 2007,” said Johnson. “We have made significant changes to our corporate structure that will allow us to remain the leading supplier to the industries we serve for many years to come.”
By the end of of Decorator’s fiscal 2010 on Jan. 1, Johnson said, Decorator’s stock will be delisted and go on the “pink sheets.” The Decorator board voted Nov. 16 to delist the company’s stock from the NYSE/AMEX.
“We will exist and will have shareholders, but will not report to the public,” he explained.
All in all, Johnson considers delisting from a public to a private company “a positive experience” that “saves time and effort from being a public company.”
Decorator was founded more than 55 years ago and had annual sales of $47 million as recently as 2007. However, Decorator, like many U.S. companies, got caught up in the economic downturn and resultant bankruptcies of two of its major customers, Fleetwood Enterprises Inc. and Monaco Coach Corp. since that high-water mark, said Johnson.
“When they filed for bankruptcy, it broke our backs,” said Johnson, adding that he is hopeful that the company is moving beyond the recent downturn at this point as Decorator’s business mix today, he added, today is probably 20% RV, 20% manufactured housing and 60% hospitality.
Decorator Industries Inc. has reported further declines in sales for the nine-month period ending Oct. 2.
Net sales for the first three fiscal quarters of this year declined to $12.3 million in fiscal 2010 from $15.3 million in fiscal 2009, the company reported. These declines are primarily the result of downturns in the markets it serves and the fact that two of its largest customers have filed for bankruptcy. While there are signs of improvement in these markets, particularly in the market for recreational vehicles, or at least stabilization, there can be no assurance that future sales will increase to the level necessary for the company to operate at a profit, according to a release\.
Net loss was $768,290 for the first nine months of 2010, compared to a net loss of $2,125,637 for the year-earlier period. The reduction in the net loss was mostly attributable to the plant closing costs of $900,000 (pre-tax) recognized in 2009, but also to improved margins and reduced selling and administrative costs. The improvement was achieved despite a 19% reduction in net sales
Selling and administrative expenses were $3,766,027 in the first nine months 2010 versus $5,793,628 a year earlier. The expenses for the first nine months 2009 included charges of $900,000 related to the write-off of impaired assets and the closing of underperforming facilities. Excluding the write-offs, selling and administrative expenses were $1,127,601 less in 2010 than in 2009. The decrease was attributable to reductions in employees, compensation, benefits, commissions, and bad debt.
In cost-saving measures, Pembroke Pines, Fla.-based Decorator Industries Inc., a supplier of interior furnishings to the RV industry, said it will remove its shares from the American Stock Exchange and has reached a deal with its lender, the Miami Herald reported.
Decorator Industries said it received notice from NYSE/AMEX that trading in its shares may be halted because the company has not filed third-quarter financial information for the period ending Oct. 2.
The company also said it has reached a deal with its lender, Wells Fargo, regarding its credit agreement and outstanding debt.
The company said it delayed the filing because it was in discussions with its lender, Wells Fargo Bank, N.A., regarding the company’s credit agreement and outstanding indebtedness.
Decorator Industries Inc., a Pembroke Pines, Fla.-based supplier of interior furnishings for the hospitality, manufactured housing and recreational vehicle industries, reported Tuesday (Aug. 17) a net loss of $103,757 or 3 cents per diluted share for the second quarter of fiscal 2010, compared with a net loss of $366,181 or 12 cents per diluted share in the second quarter of 2009.
The net loss for the first six months of fiscal 2010 was $447,278 or 14 cents per diluted share compared with a net loss of $1,657,110 or 56 cents cents per diluted share for the same period a year ago.
The second quarter 2009 loss included a pre-tax charge of $150,000 related to the closing of certain facilities and the six months of 2009 included pre-tax charges of $900,000.
Net sales for the second quarter of fiscal 2010 were $4,699,027, down 17% from $5,677,395 for the same period a year ago. Net sales for the first six months of fiscal 2010 were $8,719,654 a decline of 19% from $10,783,033 in the first half of 2009.
Sales to RV customers increased 16% to $1,230,000 in the second quarter of fiscal 2010, compared with last year’s second quarter sales of $1,064,000. For the six-month period of fiscal 2010, RV sales increased by 31% to $2,513,000 compared with $1,917,000 for the same period a year ago. Excluding the discontinued sewn goods sales from 2009’s second quarter and year-to-date sales reveals pleated shade sales to the RV industry in 2010 increased 58% in the second quarter and 75% year-to-date.
Decorator Industries Inc. Monday (May 17) announced improving operating results for the first quarter ended April 3.
The Pembroke Pines, Fla.-based supplier to the RV, manufactured housing and hospitality industries reported a net loss of $343,521 for the quarter, compared to a net loss of $1.29 million in the same quarter one year ago. Net sales for the first quarter decreased 21% to $4.02 million compared to $5.1 million for the first quarter of 2009.
Sales to RV customers increased 50% to $1,283,000 compared to $853,000 in last year’s first quarter. The RV industry reported that total RV wholesale shipments increased 97% in the first quarter of 2010 from last year’s first quarter. Towable RV shipments, primarily travel trailers, increased by 94% while motor home shipments increased by 137% from the first quarter of 2009. Excluding the discontinued sewn goods sales from last year’s first quarter sales reveals our pleated shade sales to the RV industry increased 97% in the first quarter, the same as the industry.
The company stated, “The operating loss decreased to $507,037 or 13% of net sales in 2010 from $1,770,195 or 35% of net sales in the first quarter of 2009. Over half of the reduction came from the one-time charge of $750,000 in 2009 related to our decision to discontinue the manufacturing of sewn goods for the RV industry. The remainder of the loss reduction came from cost cutting and improved margins.
“Selling and administrative expenses decreased by almost $460,000 during the first quarter, excluding the one-time charge of $750,000. The cost savings largely came from reduced compensation, reduced staff and benefits and other expenses related to the closing of facilities.
“During the quarter we continued to improve liquidity by receiving $359,153 of a $1.2 million income tax receivable; with the balance being received during April 2010. In addition, on April 20, 2010 we signed a new lending agreement with Crestmark Bank to provide up to $2 million of borrowing availability. On April 16, 2010 the Wachovia loan balance was fixed at $3,322,000 and Wachovia will no longer provide working capital, in accordance with the terms of the September 2009 loan modification agreement. We recently entered into a contract to sell the building in Douglas, Ga., and entered into a contract to complete a sale/leaseback of our Haleyville, Ala., building. The proceeds from these transactions and additional real estate sales will be used to pay down the debt with Wachovia.
“Even though the economy shows signs of improvement, we expect the recovery will be slow and continue to present challenges along the way. We have made a lot of progress improving liquidity and positioning the company to benefit as our markets improve. We are not content with just waiting for the markets to recover and continue to pursue all opportunities to increase sales, reduce costs and return to profitability.”
Decorator Industries Inc. reported Tuesday (March 2) its operating results for the fourth quarter and year ended Jan. 2.
For the quarter, the Pembrooke Pines, Fla.-based supplier to the RV and manufactured housing industries reported a net loss of $911,922, which included a one time pre-tax charge of $546,783 for the impairment of goodwill related to the acquisition of Superior Drapery in June 2007. In the fourth quarter of 2008, Decorator reported a net loss of $642,120, which included a one time pre-tax charge of $321,523 related to the closing of certain facilities.
For the fiscal year 2009, Decorator reported a net loss of $3 million, which included pre-tax charges of $1.4 million related to the impairment of assets and the closing of additional facilities during the year. For the fiscal year 2008, Decorator reported a net loss of $2.6 million, which included pre-tax charges of $2.1 million related to the impairment of assets, the closing of certain facilities and an increase in the bad debt reserves.
Net sales for the fourth quarter of fiscal 2009 were $3.3 million, down 54% from $7.2 million for the same period a year ago. Net sales for the fiscal year 2009 were $18.6 million a decline of 53% from $39.6 million in the fiscal year 2008.
Sales to RV customers decreased 49% to $800,000 in the fourth quarter of fiscal 2009, compared with last year’s sales for the same period of $1.6 million. For the fiscal year 2009, RV sales decreased 72% to $3.8 million compared with $13.3 million for the same period a year ago.
The company’s quarterly and year-to-date RV sales were negatively impacted by its decision to exit the sewn goods segment of the RV market in the second quarter of 2009.
Decorator Industries Inc., Pembroke Pines, Fla., today (Nov. 18) reported a net loss of $468,527, or $0.16 per diluted share, for the third quarter of the company’s fiscal 2009 year. The loss, attributable to lowered sales in the company’s hospitality, manufactured housing and recreational vehicle industries, was slightly higher than the net loss of $407,290, or $0.14 per diluted share, that the company incurred in the third quarter of 2008 and offset gains the company made in reducing overhead expenses.
For the first nine months, the company reported a net loss of $2.1 million, compared to a net loss of $1.9 million for the same period in 2008. The 2009 loss includes a pre-tax charge of $900,000 related to the scheduled consolidation of certain facilities and the impairment of assets.
“We reduced the operating loss to $512,606 for the third quarter of 2009 compared to $635,466 in last year’s third quarter,” said William Johnson, president of the interior furnishings company, in a news release. “The operating loss was caused by the 52% drop in sales. The decline in sales offset the almost 5% improvement in the gross profit margin and $850,000 reduction in overhead costs compared to the third quarter of 2008. We consolidated our Salisbury, N.C., facility into Haleyville, Ala., in a continuing effort to reduce operating costs and better utilize the remaining facilities.”
Net sales for the third quarter of fiscal 2009 were $4.5 million, down 52% from $9.3 million for the same period in 2008. Net sales for the first nine months of the year were $15.3 million, a decline of 53% from 2008. Sales to RV customers in the third quarter decreased 56% to $1.0 million, while year-to-date sales dropped 75% to $2.9 million. In the manufactured-housing market, sales decreased 38% in the third quarter, to $1.3 million. Sales in both the RV and MH markets reflected the downturn encountered by both industries; according to the Manufactured Housing Institute, shipments decreased about 42% for the nine-month period in 2009 compared to a year earlier, while the RV industry reported total shipments were down by 43% for the same time period.
Decorator Industries Inc. announced Tuesday (Oct. 6) that on Sept. 30, the company negotiated a modification to its loan agreement with Wachovia Bank.
The modification agreement extends the maturity date of the loan agreement to Dec. 31, 2010, changes the interest rate to prime rate plus 2% and limits the outstanding balance to the lesser of $4 million or 75% of the appraised value of six of the company’s properties which are now unencumbered, according to a news release. Decorator expects the real estate appraisals to fully support the $4 million of availability.
Wachovia Bank will secure repayment of the loan by collateralizing this real estate. Should any of this real estate be sold, the company explained, the net proceeds will pay down the loan and reduce the available loan limit dollar for dollar.
In addition, the loan modification allows Pembroke Pine, Fla.-based Decorator to establish an additional credit line with an asset-based lender using all of Decorator’s accounts receivable and inventory as collateral. This should provide as much as $2 million of additional working capital availability.
“I am pleased that we negotiated the best agreement available in such a difficult economic environment,” said William Johnson, president. “I am confident that the modification provides the financial resources to successfully weather this economic storm. Now we must refocus our efforts on the long term profitability of Decorator Industries.”
Decorator Industries designs, manufactures and sells interior furnishing products, principally draperies, curtains, shades, blinds, valance boards, bedspreads, comforters, pillows, cushions and trailer tents.
The company supplies the RV and manufactured housing industries and is a growing supplier to the lodging industry.