Dal-Tile Reports Record Sales and Profits
October 24, 2001
Dal-Tile International Inc. recently announced record sales and profits for the third quarter of 2001. Sales increased $21.1 million, or 8.5%, to $269.0 million compared to $247.9 million in the third quarter of 2000. On a pro forma -- fully taxed basis, net income for the quarter increased $2.4 million, or 13.3%, over the third quarter of 2000 to $20.5 million, or $0.35 per share. Net sales increased across all business units supported by the launch of new products and growth of the natural stone business. Versus the prior year, company-operated sales centers increased 9.7%, while distributors and home centers grew 8.4% and 1.9%, respectively. Operating margin was flat versus the prior year. Gross margins declined by approximately one percentage point due to product mix, declining prices for floor tile and reduced production to balance inventories. The decline in gross margin was offset by reductions in selling, general and administrative expense and transportation cost. Profit margin before tax increased 50 basis points to 12.4%, due primarily to lower interest expense. Free cash flow was $33.6 million versus $31.0 million in the prior year, and debt was $261.7 million, which was $92.1 million lower than third quarter prior year.
Additional information on the company and its products is available at http://www.daltile.com.