Imperial Industries Inc. (IPII, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $2.53 million; its shares were traded at around $1 with and P/S ratio of 0.08.
The decrease in selling, general and administrative expenses for the nine months ended September 30, 2009 was due primarily to a decrease in payroll and related costs of $169,000 due to a reduction in personnel and pay cuts, a decrease in professional fees of $132,000, a decrease in delivery costs of $82,000 and a decrease in travel and entertainment expenses of $45,000. These decreases were partially offset by an increase of $131,000 in restructuring fees related to the discontinued operations of Just-Rite and an increase of $116,000 in distribution costs remaining after the Pompano Beach facility transferred production of a certain product from the Pompano Beach facility to the Winter Springs facility. The decrease in selling, general and administrative expenses for the three months ended September 30, 2009 was due primarily to a decrease in payroll and related costs of $30,000, a decrease in professional fees of $18,000, a decrease in delivery costs of $41,000 and a decrease in travel and entertainment expenses of $8,000. These decreases were partially offset by an increase of $85,000 in distribution costs associated with consolidating production at our Winter Springs, Florida facility noted above.
As a result of the above factors, we had a net loss from continuing operations of $1,440,000 and $274,000 or $0.57 and $0.11 per share for the nine and three months ended September 30, 2009, respectively. Additionally, we had a net loss from discontinued operations of $2,798,000 and $1,530,000 or $1.10 and $0.60 per share for the nine and three months ended September 30, 2009, respectively
At September 30, 2009, we had negative working capital of $1,410,000 compared to working capital of $2,021,000 at December 31, 2008. The decrease in working capital was due primarily to the decrease in current assets held for sale as a result of the Assignment. At September 30, 2009, we had cash and cash equivalents and restricted cash of $803,000 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 nine months ended September 30, 2009. All of the remaining 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 $2.53 million; its shares were traded at around $1 with and P/S ratio of 0.08.
Highlight of Business Operations:
Net sales decreased $924,000 and $238,000 for the nine and three months ended September 30, 2009, or 11.9% and 9.8%, respectively, compared to the same periods in 2008. The decrease in net sales was principally due to a reduction in demand for our products in the residential and commercial construction industries related to the decline in construction activity in the Southeast United States. Gross profit was approximately 30.3% and 33.5% for the nine months and three months ended September 30, 2009 compared to 30.1% and 30.7% for the same period of 2008. The increase in the margin for the three months ended September 30, 2009 was due primarily to moving the production of a certain product from the Pompano Beach facility to the Winter Springs facility in May 2009 to reduce manufacturing costs by consolidating production and improving plant utilization. Manufacturing expenses were approximately $85,000 less for the three months ended September 30, 2009.The decrease in selling, general and administrative expenses for the nine months ended September 30, 2009 was due primarily to a decrease in payroll and related costs of $169,000 due to a reduction in personnel and pay cuts, a decrease in professional fees of $132,000, a decrease in delivery costs of $82,000 and a decrease in travel and entertainment expenses of $45,000. These decreases were partially offset by an increase of $131,000 in restructuring fees related to the discontinued operations of Just-Rite and an increase of $116,000 in distribution costs remaining after the Pompano Beach facility transferred production of a certain product from the Pompano Beach facility to the Winter Springs facility. The decrease in selling, general and administrative expenses for the three months ended September 30, 2009 was due primarily to a decrease in payroll and related costs of $30,000, a decrease in professional fees of $18,000, a decrease in delivery costs of $41,000 and a decrease in travel and entertainment expenses of $8,000. These decreases were partially offset by an increase of $85,000 in distribution costs associated with consolidating production at our Winter Springs, Florida facility noted above.
As a result of the above factors, we had a net loss from continuing operations of $1,440,000 and $274,000 or $0.57 and $0.11 per share for the nine and three months ended September 30, 2009, respectively. Additionally, we had a net loss from discontinued operations of $2,798,000 and $1,530,000 or $1.10 and $0.60 per share for the nine and three months ended September 30, 2009, respectively
At September 30, 2009, we had negative working capital of $1,410,000 compared to working capital of $2,021,000 at December 31, 2008. The decrease in working capital was due primarily to the decrease in current assets held for sale as a result of the Assignment. At September 30, 2009, we had cash and cash equivalents and restricted cash of $803,000 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 nine months ended September 30, 2009. All of the remaining Gulfport assets were transferred to the Assignee on June 11, 2009.
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