Imperial Industries Inc. (fka IPII)

[Drugdoctor]

Housing downturn slams Imperial Industries South Florida Business Journal - by Ed Duggan

Imperial Industries posts Q1 loss
Q2 earnings, revenue decline at Imperial
With housing market in turmoil, TOUSA, Levitt Corp. lead losses
Imperial Industries post loss on low demand

Construction supply firm Imperial Industries has seen its once-strong materials business continue to spiral into the red this year, mirroring the real estate downturn and the construction industry’s woes.

The Pompano Beach-based company (NASDAQ: IPII) had revenue of $11.2 million and a loss of $1.8 million, or 72 cents a share, for the third quarter ended Sept. 30. For the prior-year period, it reported $13.8 million in revenue and a loss of $72,000, or 3 cents a share.

For the first nine months of the year, the Pompano Beach-based firm had revenue of $32.2 million and a loss of $4.6 million or $1.83 a share. That’s down from revenue of $43.9 million and a profit of $157,000, or 6 cents a share, for the same period in 2007.

Imperial Industries operates throughout the Southeast, with distribution facilities in Florida, Mississippi, Alabama and Louisiana.

Declining sales, growing losses and slow-paying customers have cut working capital from $9.1 million to $2.5 million, and stockholder equity from $12 million to $7.5 million in less than a year, as management scrambled to close unprofitable operations, lay off staff and sell or re-mortgage its real estate holdings to squeeze out more cash.

Chairman S. Daniel Ponce does not promise a quick turnaround. During a Monday morning conference call, he said eroded profit margins from intense competition are the legacy from the construction downturn.

Shares closed Friday at 87 cents. The 52-week high was $6.30 on March 4. The 52-week low was 36 cents on Oct 10.

http://southflorida.bizjournals.com/southflorida/stories/2008/11/17/daily2.html?ana=yfcpc