Basic ThoughtsTwo important things I saw. Refinancing its debt was very important. Also, CPI did a very good job containing losses with big drop in sales.
Q2 is a seasonally stronger quarter. I would expect them to be decently profitable. They have their costs to the bone so any volume should benefit the bottom line. Not looking for any blockbusters yet. But I see 2007 as rebuilding. what do I mean:
1) Cost reduced to its most efficient possible
2) CAPEX next to zero so cash flow will be stronger than earnings
3) New products should start to gain traction
4) May take the whole year to rebuild sales (and relationships) with independent dealers after abandoning them last year with Universal Forest Products distribution agreement. Thankfully, Universal has allowed CPI to see to independents as long as their is product differentiation.