Decorize recapitalizes, changes name to GuildMaster
By Heath E. Combs -- Furniture Today, November 9, 2009
Springfield, Mo. — Home furnishings and accent supplier Decorize Inc. has recapitalized and has changed its name to GuildMaster Inc.
The company, which sells furnishings under the GuildMaster brand and online as decorize.com, said that changing the name allows it to capitalize on goodwill associated with the brand.
GuildMaster said it also recently shed more than $3 million in debt, plus all of its outstanding preferred stock, in exchange for equity.
"For us, it shows the banks you have a really clean balance sheet," said Steve Crowder, president and CEO.
Also, the company's board authorized a one-for-five reverse split of its common stock effective last week, and the new stock began trading under the symbol GLDU. The reverse split helps the company have a more manageable number of shares, Crowder said.
GuildMaster said it also raised an additional $560,000 through the sale of common stock.
Also last week, the company reported the first full-year net profit since it was founded in 2000. It posted net income of $9,000 in the fiscal year ended June 30, compared with a net loss of $585,000 last year. Operating income rose to $307,000 from $15,000 a year ago.
Part of the reason for that profit, Crowder said, was the debt reduction moves. Over the last several years, much of the company's operating profit was used to pay down shareholder debt.
The company said its gross margin rose to 40.9%, from 34.4% in the last fiscal year.
GuildMaster, which owns factories in Indonesia and China, also reported that it had a successful High Point Market and said the company is aiming to double its operating income in fiscal 2010.
Decorize changes name to GuildMaster
11/04/2009Decorize posts first full-year profit
11/03/2009
