Foamex posts mixed Q1 results
Gross profit was $42.2 million, or 14.0% of sales, compared with $42.9 million, or 13.0% of sales, in the first quarter of 2000.
Excluding restructuring and other charges, operating income for the quarter increased 3.1%, to $25.3 million from $24.5 million in the first quarter of last year. Foamex posted restructuring and other charges of $30,000 in the first quarter of 2001, consisting of severance expenses partially offset by adjustments to prior year restructuring estimates for lease runout costs. Restructuring and other charges in the first quarter of 2000 were $3.2 million, primarily for costs related to plant closings and consolidations. Including those charges, operating income was $25.3 million in the first quarter of this year and $21.3 million in the prior year quarter.
Interest and debt issuance expense for the quarter was $17.7 million, a 5.0% decrease from $18.6 million in the first quarter of last year, primarily because of reduced debt levels.
Net income for the quarter was $6.3 million or 25 cents per diluted share, compared with $1.8 million or 7 cents per diluted share for the first quarter of 2000. EBDAIT increased to $33.8 million, compared with $33.5 million in the first quarter of last year.
"This is our ninth consecutive quarter of stable EBDAIT levels in spite of a weak economy," said President and CEO John Televantos. "We reduced debt by $14 million during the quarter, taking it below the $700 million level. We are maintaining our intense focus on cost reduction, expense control and cash generation to further strengthen our financial structure."