Sales for the three months ended March 31, 2003 were $53.6 million, compared with sales of $57.9 million reported in the first quarter of 2002, a decrease of 7.4 percent. The net loss for the quarter was $2.6 million versus a net loss of $0.6 million (before a required accounting change) in the first quarter of 2002. The net loss per share was $.31 in the first quarter of 2003 compared with $.08 per share (before accounting change) in the first quarter of 2002.
The company recorded a non-cash transition charge of $10.5 million or $1.27 per share in the first quarter of 2002 for impairment of goodwill as required for adoption of Statement of Financial Accounting Standards No. 142.
First quarter sales were negatively affected by further declines in the manufactured housing industry as well as soft remodel demand due to economic weakness and low consumer confidence, Congoleum said. These declines were partly offset by higher sales of builder products, as well as increased sales of DuraStone.
