WestPoint EBIDTA Improved in Q1
Home Textiles Today Staff -- Home Textiles Today, 5/13/2013 2:00:00 AM
NEW YORK - Although sales dropped during the first quarter, WestPoint Home's EBITDA (earnings before interest, tax, depreciation, tax and amortization) improved by $4 million thanks to improved margins and lower overhead, according to parent company Icahn Enterprises.
"We're hopeful that we'll be [generating] positive EBIDTA this year," Icahn president Dan Ninivaggi told investors during the company's earnings call in early May.
For the quarter ended March 31, EBITDA narrowed to a $1 loss from a $5 million loss in last year's Q1. Sales for the period tumbled 17.9% to $46 million. Icahn attributed the sales slump to the exit from un profitable programs.
WestPoint ended the quarter with $12 million of unrestricted cash after paying a $45 million dividend to an IEP subsidiary during the quarter, compared to $67 million at the end of 2012, according to the company.
Ninivaggi described the $12 million as "more than sufficient" to carry the business going forward.
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