"Raw material costs increased in early June of this year, and we raised our selling prices to recoup this higher cost. We expect the effect of higher selling prices will be felt during the third and fourth quarters of this year."
"Sales of our new modular/carpet tile products continue to be well received in the marketplace. Although sales of these products grew over 35% from the first quarter of 2007, this level was below our expectations. Our order entry experience makes us optimistic that growth rates will accelerate as the year progresses."
"The negative impact of this start-up operation on our second quarter results was approximately $300,000. We continue to believe this new business will begin to make a positive contribution to our operating results before the end of the year."
"The outlook for our commercial business continues to be favorable. Sales in this business segment increased over 7% in the second quarter verses 2% for the industry and our year-earlier sales. Order entry comparisons in July indicate that this business is strengthening."
"Despite softness in the industry's residential markets, we have continued to make investments to grow our business and develop new products. The placement with retailers of our new Dixie Home and Office collection of Stainmaster commercial products has met our expectations, and we began delivering samples of these new items to our customers in May."
"Masland's and Fabrica's new wool product collections are on schedule to reach the marketplace later this year. We are cautiously optimistic that conditions will improve during the last half of the year in the residential carpet markets we serve."
The loss from discontinued operations was $118,000, or $0.01 per diluted share, for the second quarter of 2007, compared with a loss of $84,000, or $0.01 per diluted share, for the second quarter of 2006. For the first six months of 2007, the loss from discontinued operations was $184,000, or $0.01 per diluted share, compared with a loss of $174,000, or $0.01 per diluted share, in the year-earlier period.
Including discontinued operations, the Company reported net income of $2,438,000, or $0.19 per diluted share, for the second quarter of 2007, compared with net income of $944,000, or $0.07 per diluted share, for the second quarter of 2006. For the first six months of 2007, net income was $2,609,000, or $0.20 per diluted share, compared with net income of $1,779,000, or $0.14 per diluted share, in the 2006 period.
marketing@alchempro.com
