Interiors, Inc. Reports Record Sales for Fiscal Year 1999
Net Sales Increase 500% From Prior Year
MT. VERNON, N.Y.--(BUSINESS WIRE)--Oct. 13, 1999-- Interiors, Inc. (NASDAQ: INTXA) today announced that its net sales for the fiscal year ending June 30, 1999 increased to $80.4 million from $13.4 million, an increase of $67.0 million compared to the same period a year ago.
In addition, the Company had income from operations of $1,019,721 for the fiscal year.
The Company reported net sales for the three months ended June 30, 1999 of approximately $37.7 million compared to $7.2 million for the same period in 1998, an increase of approximately $30.5 million. The increase in net sales was primarily due to the Company's successful implementation of its acquisition and growth strategies.
"As planned, the Company's rapid growth continues," said Max Munn, Chief Executive Officer of Interiors, Inc. "Through our acquisitions, we have greatly expanded our manufacturing and distribution capabilities to a national level adding facilities in the states of California, Florida, Maryland, Mississippi, and New York. As part of our continuing consolidation strategy, and to continue to reduce costs, we have moved four companies into two facilities and combined and streamlined their manufacturing operations. Furthermore, we plan on continuing to acquire related manufacturers and to further consolidate this fragmented industry. The Company's strategy is focused on providing the home furnishings industry with a single-source solution which satisfies the consumer's need to purchase all of their accessories and furnishings in a whole-room, life-style environment in a one-stop shopping experience. The Company is now poised to capitalize on its rapid growth over the coming year as we intend to continue our efforts to maximize shareholder value. The costs related to the relocations and consolidations were charged to the June 30, 1999 earnings. In addition, the Company has taken a non-recurring and non-cash financing charge relating to the issuance of securities."
The Company, in order to focus on its stated strategy and to maximize future growth, has determined to write-off substantially all of its previous investments in Photo-To-Art, Ltd. and Decor Group, Inc. The write-off is non-recurring, non-cash and non-operating. The Company reported certain non-recurring and non-cash charges of approximately $8.6 million, arising from impairments of investments and other receivables, non-cash financing charges and accrued dividends on the Company's Series A Preferred Stock, which are payable in shares of Class A Common Stock. The Company does not expect further related write-offs.
Giving effect to the non-recurring and non-cash charges discussed above, the Company reported a net loss of $8.0 million for its fiscal year 1999 compared to net income of $633,674 for the fiscal year 1998. Net earnings per diluted common share was a loss of $0.39 per share for the current year compared to a gain of $0.04 per share for last year.
The Company's largest and most recent acquisitions to date have become its most profitable subsidiaries. In February 1999, the Company acquired Stylecraft Lamps, Inc. a manufacturer of portable lighting products and fixtures with current annualized sales of approximately $40.0 million for the prior year. Since the acquisition, Stylecraft's revenues and profits continue to grow significantly. In March 1999, the Company acquired Petals, Inc., a manufacturer and marketer of decorative silk flowers, plants and accessories, with annual sales of approximately $42.0 million. Petals, already the country's largest catalog retailer of silk florals, is well positioned to expand sales over the internet. The acquisition will create new channels of distribution and cross-marketing and cross-merchandising opportunities to significantly enhance the sales of both Petals silk floral products and Interiors' multiple lines of decorative accessories. For fiscal year 2000, the Company expects Petals revenues will grow by 15% to 20% and its pre-tax profit will increase to almost $5.0 million.
Interiors, Inc. is a rapidly growing designer, manufacturer, and marketer of a wide range of decorative accessories for the home furnishings industry. The Company's decorative accessory customer base includes J.C. Penney, Spiegel, Federated Stores, several divisions of The Limited stores, as well as other major retailers. Through its acquisition strategy, annualized pro forma revenues have increased from $13.3 million to approximately $155.0 million during the past year.
This statement contains certain forward-looking statements, which may involve known and unknown risks, uncertainties, and other factors not under the Company's control which may cause actual results, performance and achievements of the Company to be materially different from the results, performance, or expectations of the Company. These factors include, but are not limited to those detailed in the Company's periodic filings with the Securities and Exchange Commission.
--------------------------------------------------------------------------------
Contact:
Interiors, Inc., Mt. Vernon
Max Munn, President, 914/665-5400 Ext. 801 |
