Quaker Fabric Tumbles
By Staff -- Home Textiles Today, 3/12/2007 12:00:00 AM
Fall River, Mass. —
Its sales fading fast, weighed down by a $7.7 million restructuring charge and steep expenses, Quaker Fabric continued to leak red ink during the fourth quarter, recording a $12.9 million loss, double its year-ago deficit of $5.5 million.
Sales at the producer of decorative fabrics fell 35.8%, to $32.2 million from $50.1 a year ago.
Operating costs totaled $8.7 million, roughly four times the $2.2 million Quaker realized in gross profit once it covered the cost of making its goods. Average gross margin declined to 6.8% from 10.0%. On the plus side, dollar costs were slashed by 19.5%, to $8.7 million from $10.8 million, yielding a savings of $2.1 million.
Quaker Fabric Corp.
| Qtr. 12/30 (x000) | 2006 | 2005 | % change |
| (loss) a. Fourth quarter results include a $7.7 million asset impairment and restructuring charge vs. $1.6 million last year; a $187,000 loss on the sale of assets; a $628,000 charge for the early retirement of debt; miscellaneous costs of $541,000 vs. $51,000; and income tax benefit of $3.6 million vs. $2.6 million. b. 12-month results include a $26.5 million asset impairment and restructuring charge vs. $11.2 million a year ago; a $190,000 gain on the sale of assets; a $628,000 charge on the early retirement of debt vs. $2.2 million last year; $1.3 million in miscellaneous costs vs. $196,000; and a tax benefit of $16.5 million vs. $13.0 million. Prior-year results were reduced by a $5.4 million goodwill impairment charge. |
|||
| Sales | $32,193 | 50,127 | -35.8 |
| Oper. Income (EBIT) | (6,521) | (5,798) | — |
| Net income | (12,929)a | (5,559)a | — |
| Per share (diluted) | (0.77) | (0.34) | — |
| Average gross margin | 6.8% | 10.0% | — |
| SG&A expenses | 27.1% | 21.6% | — |
| 12 months | |||
| Sales | 151,664 | 224,684 | -32.5 |
| Oper. Income (EBIT) | (22,198) | (17,156) | — |
| Net income | (37,632)b | (26,256)b | — |
| Per share (diluted) | (2.23) | (1.56) | — |
| Average gross margin | 9.8% | 12.9% | — |
| SG&A expenses | 24.4% | 20.5% | — |
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