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Year Year ending Net income or (loss)
1988 3/26 $106,054
1989 4/1 789,455
1990 3/31 1,042,548
1991 3/30 1,646,3841
1992 12/26 1,185,2162
1993 12/25 (585,775)
1 In 1991, MD&F switched from a fiscal year ending Mar. 30
to Dec. 26. MD&F’s net income for the 9 months ending Dec. 31,
1991, was $1,362,684.
2 Of MD&F’s $1,185,216 net income for 1992, $790,012 was
from a life insurance policy on Mr. DiSanto’s life.
In 1991 and earlier years, MD&F had net profit margins of 8
to 10 percent. After 1991, MD&F’s net profit margins were less
than 5 percent. Some of MD&F’s customers were in financial
trouble in the late 1980's and in 1991 and 1992, in part because
of foreign competition.
4. Water Usage
Water is one of MD&F’s primary raw materials. MD&F and the
City of Morganton had disputes over water rates since the 1960's.
In the early 1990's, the City of Morganton proposed doubling
MD&F's water rates, which would have increased MD&F's water
expenses by about $750,000 per year. The proposed increase would
have been almost twice MD&F's operating income for 1992.
5. Lawsuits
Before Mr. and Mrs. DiSanto died, MD&F had sued one of its
customers, Leadertex, for nonpayment of $300,000. Leadertex then
sued MD&F for damages of more than $2 million for improperly
processing fabric. The parties settled the lawsuit, apparently
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Last modified: May 25, 2011