Imperial Industries Inc. (IPII, Financial) filed Amended Quarterly Report for the period ended 2009-06-30.
Imperial Industries Inc. a building products company sells products throughout the Southeastern United States. The Company manufactures and distributes stucco plaster and roofing products to building materials dealers contractors and others through its subsidiaries Premix-Marbletite Manufacturing Co. and Acrocrete Inc. Through its subsidiary Just-Rite Supply Inc. they distribute the Company\'s manufactured products as well as gypsum roofing insulation and masonry products manufactured by other companies. Imperial Industries Inc. has a market cap of $1.9 million; its shares were traded at around $0.75 with and P/S ratio of 0.1.
The decrease in selling, general and administrative expenses for the three months ended June 30, 2009 was due primarily to a decrease in payroll and related costs of $76,000, a decrease in professional fees of $43,000 a decrease in delivery costs of $29,000 and a decrease in travel and entertainment expenses of $12,000.
As a result of the above factors, we had a net loss from continuing operations of $1,166,000 and $983,000 or $0.46 and $0.39, respectively, for the six and three months ended June 30, 2009. Additionally, we had a net loss from discontinued operations of $1,268,000 and $653,000 or $0.50 and $0.26, respectively for the six and three months ended June 30, 2008.
At June 30, 2009, we had negative working capital of $452,000 compared to working capital of $2,021,000 at December 31, 2008. The decrease in working capital was due primarily to the reclassification of Just-Rites long term debt to current as a result of the Assignment as disclosed n Note 3, decrease in income tax receivable, current assets held for sale, partially offset by a decrease in notes payable line of credit. At June 30, 2009, we had cash and cash equivalents and restricted cash of $1,024,000 compared to cash and cash equivalents and restricted cash of $423,000 at December 31, 2008.
The maximum credit available on the Line of Credit, based on eligible accounts receivable and inventory, was reduced from $3,500,000 to $2,500,000 immediately and until June 21, 2009, and thereafter was to be reduced $200,000 each week until the maximum credit equals $500,000;
In October 2008, we received an offer from the Mississippi Department of Transportation (the MDOT) under the laws of eminent domain to purchase two parcels of property that comprised our Gulfport, Mississippi facility for $2,812,000. One parcel was sold in November 2008 for $1,947,000, of which $407,000 was used to pay-off the existing mortgage on both properties, resulting in net cash proceeds to us of approximately $1,540,000. We realized a gain of $1,364,000 from the sale of this parcel in the fourth quarter of 2008. The second parcel was sold to the MDOT in February 2009 and resulted in net cash proceeds to us of $865,000. We realized a gain of $573,000 from the sale of this parcel in the first quarter of 2009 and this gain is reflected in loss from discontinued operations in the statement of operations for the six months ended June 30, 2009. All of the Gulfport assets were transferred to the Assignee on June 11, 2009.
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Imperial Industries Inc. a building products company sells products throughout the Southeastern United States. The Company manufactures and distributes stucco plaster and roofing products to building materials dealers contractors and others through its subsidiaries Premix-Marbletite Manufacturing Co. and Acrocrete Inc. Through its subsidiary Just-Rite Supply Inc. they distribute the Company\'s manufactured products as well as gypsum roofing insulation and masonry products manufactured by other companies. Imperial Industries Inc. has a market cap of $1.9 million; its shares were traded at around $0.75 with and P/S ratio of 0.1.
Highlight of Business Operations:
The decrease in selling, general and administrative expenses for the six months ended June 30, 2009 was due primarily to a decrease in payroll and related costs of $131,000 due to a reduction in personnel and pay cuts, a decrease in professional fees of $116,000, a decrease in delivery costs of $69,000 and a decrease in travel and entertainment expenses of $36,000. These decreases were partially offset by an increase of $129,000 in one-time restructuring fees related to the discontinued operations of Just-Rite.The decrease in selling, general and administrative expenses for the three months ended June 30, 2009 was due primarily to a decrease in payroll and related costs of $76,000, a decrease in professional fees of $43,000 a decrease in delivery costs of $29,000 and a decrease in travel and entertainment expenses of $12,000.
As a result of the above factors, we had a net loss from continuing operations of $1,166,000 and $983,000 or $0.46 and $0.39, respectively, for the six and three months ended June 30, 2009. Additionally, we had a net loss from discontinued operations of $1,268,000 and $653,000 or $0.50 and $0.26, respectively for the six and three months ended June 30, 2008.
At June 30, 2009, we had negative working capital of $452,000 compared to working capital of $2,021,000 at December 31, 2008. The decrease in working capital was due primarily to the reclassification of Just-Rites long term debt to current as a result of the Assignment as disclosed n Note 3, decrease in income tax receivable, current assets held for sale, partially offset by a decrease in notes payable line of credit. At June 30, 2009, we had cash and cash equivalents and restricted cash of $1,024,000 compared to cash and cash equivalents and restricted cash of $423,000 at December 31, 2008.
The maximum credit available on the Line of Credit, based on eligible accounts receivable and inventory, was reduced from $3,500,000 to $2,500,000 immediately and until June 21, 2009, and thereafter was to be reduced $200,000 each week until the maximum credit equals $500,000;
In October 2008, we received an offer from the Mississippi Department of Transportation (the MDOT) under the laws of eminent domain to purchase two parcels of property that comprised our Gulfport, Mississippi facility for $2,812,000. One parcel was sold in November 2008 for $1,947,000, of which $407,000 was used to pay-off the existing mortgage on both properties, resulting in net cash proceeds to us of approximately $1,540,000. We realized a gain of $1,364,000 from the sale of this parcel in the fourth quarter of 2008. The second parcel was sold to the MDOT in February 2009 and resulted in net cash proceeds to us of $865,000. We realized a gain of $573,000 from the sale of this parcel in the first quarter of 2009 and this gain is reflected in loss from discontinued operations in the statement of operations for the six months ended June 30, 2009. All of the Gulfport assets were transferred to the Assignee on June 11, 2009.
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