CHICAGO, IL -- (MARKET WIRE) -- November 13, 2006 -- Continental Materials Corporation (
All segments except Door reported increased sales for the quarter lead by a 20% increase from the Concrete, Aggregates and Construction Supplies (CACS) segment. The increased CACS volume was primarily due to three large jobs in the Pueblo area. Pricing also improved although the increases were largely instituted to offset increased cement and fuel costs.
Operating income for the 2006 quarter declined to $915,000 from $1,552,000 in the 2005 quarter despite the increased volume. Narrower margins were reported primarily in the Heating and Cooling and Evaporative Cooling segments due to increased copper, aluminum and steel costs. Selling and administrative costs were significantly higher in the Heating and Cooling segment due to the addition of personnel in the sales and engineering departments and the opening of a sales and service center in Oklahoma City, Oklahoma.
For the first nine months of 2006, net income was $1,658,000, $1.03 per diluted share. In the prior year, the company reported net income of $1,695,000, $1.03 per diluted share.
Consolidated sales for the nine-month period increased $13,867,000 to $118,312,000. All segments reported higher sales, with the CACS segment responsible for $12,059,000 of the improved sales. The CACS volume increased for the reasons noted above as well as more favorable weather in Colorado during the first quarter of 2006 as compared to the 2005 period. The operating results for the nine-month period ended September 30, 2006 were $2,871,000 compared to $2,516,000 for the prior year period as a result of the stronger sales. In addition, the operating performance of the Heating and Cooling and the Evaporative Cooling segments were both better during the first six months of the year prior to the material cost increases which did not significantly affect our results until the third quarter.
CONTINENTAL MATERIALS CORPORATION
SUMMARY OF SALES AND EARNINGS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, October 1, September 30, October 1,
2006 2005 2006 2005
------------ ------------ ------------- -------------
Sales $ 40,924,000 $ 36,415,000 $ 118,312,000 $ 104,445,000
Operating income 915,000 1,552,000 2,871,000 2,516,000
Interest expense,
net (250,000) (225,000) (548,000) (515,000)
Other income 137,000 37,000 189,000 107,000
------------ ------------ ------------- -------------
Income before
income taxes 802,000 1,364,000 2,512,000 2,108,000
Provision for
income taxes 273,000 326,000 854,000 413,000
------------ ------------ ------------- -------------
Net income $ 529,000 $ 1,038,000 $ 1,658,000 $ 1,695,000
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Basic earnings
per share $ .33 $ .66 $ 1.03 $ 1.06
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Average shares
outstanding 1,605,000 1,563,000 1,605,000 1,601,000
============ ============ ============= =============
Diluted earnings
per share $ .33 $ .65 $ 1.03 $ 1.03
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Average shares
outstanding 1,605,000 1,596,000 1,605,000 1,643,000
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Contact Information: CONTINENTAL MATERIALS CORPORATION 200 SOUTH WACKER DRIVE, SUITE 4000 CHICAGO, IL 60606-5821 CONTACT: Mark S. Nichter (312) 541-7207