Tandus Group Inc. which
includes Collins & Aikman Floorcoverings Inc. and Subsidiaries, reports
earnings for the third quarter (13 weeks) and nine months year-to-date (39
weeks) ended October 25, 2003.
Revenues for the 13 weeks ended October 25, 2003 were $74.1 million compared to $84.3 million for the prior year. Selling, general and
administrative expenses were $18.6 million compared to $17.9 million for the prior year. Adjusted EBITDA was $9.4 million compared to $13.1
million for the prior year. As a percentage of sales, adjusted EBITDA margin was 12.7 percent compared to 15.5 percent for the prior year. The decrease in revenues was due to the slow demand throughout the U.S. specified commercial market, in particular the corporate office market. Selling, general and administrative expenses increased primarily due to increased salaries and benefits of $0.3 million, professional services of
$0.6 million, sampling expenses of $0.6 million, marketing and promotional
expenses of $0.3 million, partially offset by foreign currency gains of $1.3
million, lower sales commissions of $0.4 million, and amortization of $0.5
million. The majority of these increases (excluding amortization) were
incurred in support of the Company's new selling strategy implemented at the
beginning of the fiscal year.