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Pompano Beach, FL…….Imperial
Industries, Inc. ("IPII") announced
today the results of operations for the third quarter
and nine months ended September 30, 2002.
The Company derived net income of $153,000, or $.02
per share, for the third quarter of 2002, compared to
$139,000, or $.02 per share in 2001.
The Company generated income before taxes and the
write-off of goodwill, as discussed below, for the nine
months ended September 30, 2002 of $677,000, compared
to $448,000 for the same period in 2001. The Company
incurred a net loss of $483,000, or $.05 per share,
for the first nine months, compared to net income of
$282,000, or $.03 per share for the same period last
year. Income for the nine months ended September 30,
2002, includes $789,000 for a non-cash charge due to
the goodwill impairment discussed below. Excluding the
goodwill impairment charge described below, the Company
derived net income of $306,000, or $.03 per share, for
the first nine months of 2002.
Net sales for the three and nine months ended September
30, 2002 were $9,423,000 and $27,575,000, respectively,
compared to $9,556,000 and 30,481,000, for the same
periods in 2001. The closure during 2001 of certain
under-performing distribution facilities and the elimination
of installation services and sales of gypsum wallboard
at certain locations accounted for the principal amount
of the sales decline in the nine months and third quarter
of 2002 compared to the same periods in 2001.
The net loss for the nine months ended September 30,2002
includes the impact of a $1,272,000
($789,000 net of related tax benefit) non-cash
goodwill impairment charge. The charge is related to
the Company's required adoption of Statement of Financial
Accounting Standards (SFAS)
No. 142 "Goodwill and Other Intangible Assets".
The goodwill impairment charge is a one time event and
does not affect the operating results of the Company.
The Company doesn't have any remaining goodwill on its
balance sheet. The impairment of goodwill is attributable
to the under-performance of the Company's distribution
operations associated with the acquisition of certain
building materials distributors in 2000. In accordance
with SFAS No. 142, the Company is reflecting this impairment
charge in its nine month financial results as a cumulative
change in accounting principle.
Imperial Industries, Inc., a building products company,
sells products throughout the Southeastern United States
with facilities in the States of Florida, Georgia, Mississippi
and Alabama. The Company is engaged in the manufacturing
and distribution of stucco, plaster and roofing products
to building materials dealers, contractors and others
through its subsidiaries, Premix-Marbletite Manufacturing
Co. and Acrocrete, Inc. The Company through its subsidiary,
Just-Rite Supply, Inc., is engaged in the
distribution of the Company's manufactured products,
as well as gypsum, roofing, insulation and masonry products
manufactured by other companies.
The statements in this press release contain forward-looking
statements, which are subject to risks and uncertainties.
Such statements, including those regarding, among other
things, the Company's strategy and future prospects,
are dependent on a number of factors, including market
conditions and availability of financing, only some
of which are within the Company's control. Actual results
could differ materially from those currently anticipated
due to a number of factors, including those set forth
in the Company's Securities and Exchange Commission
filings under "Risk Factors".
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Nine
Months Ended
September 30 |
Three
Months Ended
September 30 |
| |
2002 |
2001 |
2002 |
2001 |
|
Net Sales
|
$27,575,000 |
$30,481,000 |
$9,423,000 |
$9,556,000 |
| Income before taxes
and cumulative effect of changes in accounting principle
for SFAS 142 |
$677,000 |
$448,000 |
$235,000 |
$288,000 |
|
Income tax expense
|
(371,000) |
a.
(166,000) |
(82,000) |
a.
(89,000) |
| Net income before
cumulative effect of accounting change |
306,000 |
282,000 |
153,000 |
b.
139,000 |
| Cumulative effect
of accounting change for SFAS No. 142, net of tax
benefit |
(789,000) |
- |
- |
- |
|
Net (loss) income
|
$(483,000) |
$
282,000 |
b.$153,000 |
b.$139,000 |
(Loss) earnings
per share:
Basic and diluted before cumulative
effect of accounting change |
$
0.03 |
$
0.03 |
$
0.02 |
b.
$ 0.02 |
Cumulative effect
of accounting
change for SFAS No. 142 |
(0.08) |
- |
- |
- |
| Basic and diluted |
$
(0.05) |
$
0.03 |
b.
$ 0.02 |
b.
$ 0.02 |
(a) 2002 income tax expense
includes the effect of income tax expense at the statutory
rate for the nine months and three months periods ended
September 30, 2002 and 2001, respectively. In addition,
results for the nine months ended September 30, 2002
include additional income tax expense of $121,000 associated
with the anticipated expiration of certain net operating
loss carryforwards in 2002. Based on the Company's net
operating loss carryforwards, the Company is not expected
to pay federal income taxes for the
current year.
(b) If goodwill amortization
had not been recorded in the first nine months and third
quarter of 2001, net income would have been $301,000
and $145,000, respectively, with no impact on earnings
per share.
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