Results for the quarter included an income tax benefit of $423,000, or $.04 per diluted share, due to a tax contribution deduction related to the sale of a carpet yarn facility that was closed at the end of 2001. For the same period in 2001, the company reported net income of $2.8 million, or $0.24 per diluted share.
Results for the 2001 period included an unusual gain, principally from the sale of real estate, of $2.3 million, or $0.19 per diluted share. Net sales were $118.5 million in the fourth quarter of 2002, compared with net sales of $123.7 million in the year-earlier period.
For the year ended Dec. 28, 2002, the company reported income from continuing operations of $8.3 million, or $0.70 per diluted share, compared with net income of $517,000, or $0.04 per diluted share, in 2001. Results for the 2001 period reflected the real estate gain, net of the cost of first quarter workforce reductions, which improved results by $1.4 million, or $0.12 per diluted share. Net sales for 2002 were $507.5 million, compared with net sales of $534.6 million in 2001.
During the fourth quarter 2002, the company recorded a non-cash, after-tax charge of $3.7 million, or $0.32 per diluted share, on discontinued operations to fully reserve a note received in 1999 when the company's textile cotton yarn and dyeing operations were sold. This action was taken as the result of further deterioration of economic conditions in the textile industry. Including discontinued operations, the Company reported a net loss of $1.4 million, or $0.12 per diluted share, in the fourth quarter and net income of $4.6 million, or $0.39 per diluted share, for the full year.