Imperial Industries Inc. reported unaudited earnings results for the third quarter and nine months ended September 30, 2009. Net sales for the third quarter ended September 30, 2009 were $2,186,000, compared to $2,424,000 for the same period in 2008, a decrease of 9.8%. For the third quarter ended September 30, 2009 the company had a loss from continuing operations of $274,000, or $0.11 per basic and diluted share, compared to a loss from continuing operations of $324,000, or $0.13 per basic and diluted share, for the comparable period of 2008. The company incurred a net loss of $1,804,000, or $0.71 per basic and diluted share, for the third quarter of 2009 compared to a net loss of $1,810,000, or $0.72 per basic and diluted share, for the third quarter of 2008. Net sales for the nine months ended September 30, 2009 were $6,864,000, compared to $7,788,000 for the same period in 2008, a decrease of 11.9%. The company realized a loss from continuing operations of $1,440,000, or $0.57 per basic and diluted share, for the 2009 nine month period compared to a loss from continuing operations of $558,000, or $0.22 per basic and diluted share, for the comparable period in 2008. Net loss for the nine months ended September 30, 2009 was $4,238,000, or $1.67 per basic and diluted share, compared to a net loss of $4,596,000, or $1.83 per basic and diluted share, for the same period in 2008. Results of operations for both the third quarter and nine month periods ended September 30, 2009 were adversely affected by the continuing decline in construction activity and weak demand for the company's products throughout the Florida market, the Company's principal trade area. In addition, the company's subsidiary, Just-Rite Supply, Inc., terminated all operations of its distribution facilities on June 11, 2009 and entered into an Assignment for the Benefit of Creditors in which all of its assets, subject to any liabilities thereof, were transferred to the Assignee to sell and liquidate for the benefit of creditors pursuant to Florida State Law. Restructuring fees and other costs associated with the discontinuance of these operations, including a charge against continuing operations for an estimated loss contingency of $627,000, had a significant effect on the corporation's continuing results of operations for the 2009 nine month period.

Imperial Industries Inc. announced that the company and the assignee for the benefit of creditors of its subsidiary, Just-Rite Supply Inc., entered into a Third Amendment to its Forbearance Agreement with its commercial lender to extend the terms of the credit facility from September 30, 2009 to November 30, 2009. The Third Amendment provides for the lender's continued funding under the credit facility, notwithstanding the company's and assignee's recent non-compliance of certain terms set forth in the Forbearance Agreement as previously amended, subject to the company reducing the existing maximum credit of $300,000 by $25,000 per week during October and November. There can be no assurance that the company will receive additional extensions of its amended credit facility upon termination of the Forbearance Agreement, or obtain continued forbearance and funding from the Lender on terms acceptable to the company, or that such financing will be available at all at the end of the Forbearance period.

Imperial Industries Inc. announced that the company and the assignee for the benefit of creditors of its subsidiary, Just-Rite Supply Inc., had entered into a Second Amendment to its forbearance agreement with its commercial lender to extend the terms of the credit facility from August 31, 2009 to September 30, 2009. The amendment provides for the lender's continued funding under the credit facility, notwithstanding the company's and assignee's recent non-compliance of certain terms set forth in its amended forbearance agreement, subject to the company making reductions to its existing maximum credit of $500,000 during the month of September. There can be no assurance that the company will be in compliance with the terms of its amended credit facility upon termination of the forbearance agreement, or obtain continued forbearance and funding from the lender on terms acceptable to the company, or that such financing will be available at all at the end of the forbearance period.