Quaker Fabric still seeks turnaround
February 27, 2007,
Fall River, Mass. – Woven upholstery and jacquard fabric supplier Quaker Fabric reported fourth-quarternet sales of $32.2 million, down 17.9% from year-ago sales of $50.1 million, and a net loss of $12.9 million, more than twice the year-ago loss of $5.7 million. The quarter endedDec. 30, 2006.
Quaker's 2006 financial results reflect one-time charges related to the ongoing restructuring plan, including after-tax asset impairment and associated charges of $18.4 million, as well as approximately $1.9 million of after-tax expenses related to the early extinguishment of debt and inventory and deferred financing cost write-offs. Excluding these charges, net loss for fiscal 2006 was $17.4 million.
Larry Liebenow, president and ceo, pointed out that, "Pre-tax restructuring and asset impairment charges related to the execution of our restructuring plan accounted for $26.5 million, or more than half, of last year's $48.5 million operating loss. These charges are primarily non-cash and include the write-down to estimated realizable value of assets, including manufacturing plants and machinery and equipment, that we have put up for sale as part of our consolidation strategy."
Liebenow added, "While we believe that much of our consolidation effort and the related asset impairment charges are now behind us, this year's primary focus will be on rebuilding our sales line and aligning our costs with our sales expectations.”