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Scott M. Bier, Vice President, CFO
Sylvia J. Castle, Investor Relations
Aldila, Inc., (858) 513-1801
FOR IMMEDIATE RELEASE
ALDILA REPORTS FINANCIAL RESULTS FOR
THIRD QUARTER 2009
Poway, CA, November 12, 2009 ALDILA, INC. (NASDAQ:GM:ALDA) announced today net sales of $10.7 million and a net loss of $571,000 ($0.11 loss per share) for the three months ended September 30, 2009. Included in the loss was an income tax charge of $744,000 ($0.14 per share) related to the shutdown of the Companys facility in Mexico. The income tax is on the repatriation of earnings from Mexico, which the Company did not previously pay income tax on in the United States. In the comparable 2008 third quarter, the Company had net sales of $11.8 million and a net loss of $1.1 million ($0.21 loss per share). For the nine months ended September 30, 2009, net sales were $35.0 million and a net loss of $1.2 million ($0.24 loss per share) as compared to net sales of $42.1 million and a net loss of $1.2 million ($0.22 loss per share) for the nine month period ended September 30, 2008. As noted above, included in the 2009 period is an income tax charge of $744,000 ($0.14 per share). Important in these challenging economic times, our cash position remains strong at the end of the quarter due to positive cash flow of $4.5 million generated from operations through the nine months ended September 30, 2009. We have remained focused on controlling costs during this time, with our SG&A down 24% for the nine months ended September 30, 2009, compared to the comparable period in 2008.
The weak retail environment for discretionary consumer products continued to impact our sales and unit volumes during the quarter. We have announced the closing of our Mexico factory and expect to have the majority of the costs associated with the closing expensed this year. We have had 19 years of successful operation in Mexico; however, the timing is right for us to move all of our shaft production to Asia. Our China and Vietnam factories are fully capable to handle all of our shaft models and provide adequate capacity to cover our foreseeable needs, said Mr. Peter R. Mathewson, Chairman of the Board and CEO.
Our golf sales declined by 13% in the third quarter of 2009 versus the third quarter of 2008. Our average sales price of our golf shafts increased by 1% on a 15% decrease in unit sales in the third quarter of 2009 versus the third quarter of 2008. Although we experienced a decrease in units during the quarter, our mix of shafts sold improved during the third quarter of 2009 versus the third quarter of 2008. The mix change coupled with increased manufacturing efficiencies and lower manufacturing costs were factors that drove our increases in gross profit and gross margin during the third quarter ended 2009 versus the third quarter of 2008. Our backlog as of September 30, 2009 was $10.1 million, which represents a 47% increase over our second quarter of 2009 backlog and a 4% increase versus the third quarter of 2008 backlog, said Mr. Mathewson.
The following information was filed by Aldila Inc on Thursday, November 12, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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