I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for Tribune Updates specializing in quicker moving active shares with a short term view on investment opportunities and trends.
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CHICAGO, November 13, 2019 – Shares of Continental Materials Corporation (NYSE: CUO) declined -3.67% to $9.98. The stock traded total volume of 900 shares lower than the average volume of 1.40K shares.
Continental Materials Corporation (NYSE American; CUO) reported a net loss of $4.836M, or $2.82 per share for the second quarter ended June 29, 2019 compared to net income of $2.113M or $1.24 per share for the second quarter ended June 30, 2018.
Consolidated sales in the second quarter of 2019 were $25.257M or $300.0K (1.2%) lower than the second quarter of 2018. The decrease is primarily due to lower sales in the Construction Materials segment, down 29.0%, as one of the main operating quarries was mined out and moved to complete reclamation. The HVAC segment reported sales down 1.9% over the second quarter of the prior year. The Door segment reported a sales increase of 11.6% in the second quarter of 2019 compared to the second quarter of the previous year.
Consolidated sales in the first six months of 2019 were $47.786M, a decrease of $1.181M or 2.4% compared to the first six months of 2018. The Door segment reported a sales increase of 6.1%, however, the HVAC and Construction Materials segments reported sales decreases of 3.2% and 17.7%, respectively.
The consolidated operating loss for the second quarter of 2019 was $5.419M compared to operating income of $1.014M in the second quarter of the prior year. The decreased performance is primarily attributable to increases in the HVAC segment and corporate office selling and administrative expenses, as investments were made to stimulate future growth of the Company.
The consolidated operating loss for the first six months of 2019, before the gain from a legal settlement discussed above, was $7.824M. The consolidated operating profit for the first half of 2018, before the write off of deferred development, was $330.0K. All segments contributed to the decrease in performance.
Interest expense in the second quarter of 2019 was $102.0K compared to $167.0K in the second quarter of 2018. Interest expense includes interest on outstanding funded debt, finance charges on outstanding letters of credit, the fee on the unused revolving credit line and other recurring fees charged by the lending bank. The decrease from the prior year quarter is attributable to lower average borrowings.
Interest expense for the first six months of 2019 was $174.0K compared to $275.0K in the first six months of 2018 due to lower average borrowings combined with the fixed nature of certain bank fees and charges. Average outstanding funded debt in the first six months of 2019 was $513.0K compared to $5.779M in the first six months of 2018.
CUO has the market capitalization of $16.97M and its EPS growth ratio for the past five years was -45.80%. The return on assets ratio of the Company was 8.00% while its return on investment ratio stands at -10.60%. Price to sales ratio was 0.13 while 16.10% of the stock was owned by institutional investors.