CHICAGO, IL--(Marketwire - December 3, 2009) - Continental Materials Corporation (
On July 17, 2009 the company sold its Rocky Mountain Ready Mix Concrete, Inc. (RMRM), subsidiary. The results of RMRM for both the current and prior periods have been reported as a discontinued operation. The loss from the discontinued operation, excluding the related income tax provision (the result of a change in the estimated tax rate for the full year), was $120,000 compared to a loss of $585,000 in the third quarter of 2008. The net loss from the discontinued operation for the third quarter of 2009 was $282,000, 17 cents per diluted share, including the income tax provision of $162,000. The net loss for the comparable 2008 period was $323,000, 20 cents per diluted share, including the tax benefit of $262,000.
Consolidated sales from continuing operations in the first nine months of 2009 declined $19,611,000 or 18% from the first nine months of 2008 due to the same reasons discussed for the quarter.
For the nine months ended October 3, 2009 the net loss was $332,000 compared to a net loss of $1,048,000 for the first nine months of 2008. Net income from continuing operations for the first nine months of 2009 was $399,000 or 25 cents per diluted share compared to net income of $23,000 or one cent per diluted share for the comparable 2008 period. The net income for the first nine months of 2009 includes a $2,026,000 gain ($1,109,000 after tax) from the sale of land in Colorado Springs reported during the second quarter.
The loss from the discontinued operation for the first nine months of 2009 excluding asset impairment charges and the related income tax credits was $1,172,000 compared to a loss of $1,246,000 in the comparable period of 2008. The net loss from discontinued operations was $731,000 for the nine months ended October 3, 2009 compared to a $1,071,000 net loss for the first nine months of 2008. The results from the discontinued operation for the first nine months of 2009 include a pre-tax impairment charge of $647,000 offset by an income tax credit of $1,088,000.
CAUTIONARY STATEMENT -- Statements in this document that are not historical facts are forward-looking statements. It is important to note that the company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those suggested in the forward-looking statements is contained in the company's Annual Report on Form 10-K for the year ended January 2, 2009 filed with the Securities and Exchange Commission, as the same may be amended from time to time. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. The future results and shareholder values of the company may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results and values are beyond the company's ability to control or predict. Shareholders are cautioned not to put undue reliance on forward-looking statements. In addition, the company does not have any intention or obligation to update forward-looking statements after the date hereof, even if new information, future events, or other circumstances have made them incorrect or misleading. For those statements, the company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
CONTINENTAL MATERIALS CORPORATION
SUMMARY OF SALES AND EARNINGS
(Unaudited)
Three Months Ended Nine Months Ended
October 3, September 27, October 3, September 27,
2009 2008 2009 2008
----------- ----------- ----------- ------------
Sales $25,834,000 $38,362,000 $88,418,000 $108,029,000
Operating (loss) income (786,000) 1,348,000 1,433,000 799,000
Interest expense, net (198,000) (309,000) (733,000) (843,000)
Other income
(expense), net 40,000 24,000 57,000 59,000
----------- ----------- ----------- ------------
(Loss) income from
continuing operations
before income taxes (944,000) 1,063,000 757,000 15,000
Benefit (provision)
for income taxes 244,000 (390,000) (358,000) (8,000)
----------- ----------- ----------- ------------
Net (loss) income from
continuing operations (700,000) 673,000 399,000 23,000
Loss from discontinued
operation net of income
tax benefit (provision) (282,000) (323,000) (731,000) (1,071,000)
----------- ----------- ----------- ------------
Net (loss) income $ (982,000) $ 350,000 (332,000) (1,048,000)
=========== =========== =========== ============
Net (loss) income per
basic and diluted
share:
Continuing
operations $ (.44) $ .42 $ .25 $ .01
Discontinued
operations (.17) (.20) (.46) (.67)
----------- ----------- ----------- ------------
Net (loss) income
per basic and
diluted share $ (.61) $ .22 $ (.21) $ (.66)
=========== =========== =========== ============
Average shares
outstanding 1,598,000 1,599,000 1,598,000 1,600,000
=========== =========== =========== ============
Contact Information: CONTACT: Mark S. Nichter Continental Materials Corporation (312) 541-7207