A drop in manufactured-home sales helped drive revenues down 16 percent for the Morgan Group, but cost-cutting drop income up.

For its second quarter, which ended June 30, Morgan's revenues $25.4 million, compared to $30.4 million reported in the year-ago quarter. However, they were up 23 percent from 2001's first quarter.
The Elkhart, Ind., company attributed much of the revenue decline to its manufactured housing division, which reported a 29 percent decrease in revenue during the period. According to the Manufactured Housing Institute, shipments of manufactured homes declined by 30 percent in April and May 2001 compared with 2000. However, second-quarter 2001 industry data showed an improvement from the first quarter when shipments were down 41 percent from the prior year.
Second-quarter 2001 operating income more than tripled to $398,000 from last year's $113,000, thank to cost-cutting programs. Earnings before interest, taxes, depreciation and amortization (EBITDA) and net income also improved dramatically, as EBITDA increased 62 percent to $648,000 versus 2000's $401,000; and net income reached $626,000 from the $17,000 reported for last year's comparable quarter. Net income for second-quarter 2001 includes a tax benefit of $255,000 related to income tax refunds on net operating loss carrybacks.
The Morgan Group through its subsidiaries Morgan Drive Away and TDI Inc., is the nation's largest company managing the delivery of manufactured homes, commercial vehicles and specialized equipment. The Company also provides insurance and financial services through subsidiaries Interstate Indemnity and Morgan Finance.