UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

             [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                 For the quarterly period ended October 2, 2004

                                       OR

            [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                         Commission file number 1-7753

                           DECORATOR INDUSTRIES, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

              Pennsylvania                                       25-1001433
 --------------------------------------                   ---------------------
 (State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                              Identification No.)

 10011 Pines Blvd., Suite #201, Pembroke Pines, Florida       33024
 ------------------------------------------------------   ---------------
          (Address of principal executive offices)         (Zip Code)

Registrant's telephone number, including area code:  (954) 436-8909

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                  Yes [X] No [ ]

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).

                                  Yes [ ]  No [X]


Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.


       Title of each class                  Outstanding at November 16, 2004
       -------------------                  --------------------------------
Common Stock, Par Value $.20 Per Share             2,824,235 shares




<PAGE>
                         PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements.

                            DECORATOR INDUSTRIES, INC
                                 BALANCE SHEETS

<TABLE>
<CAPTION>

            ASSETS                                                   October 2,     January 3,
                                                                         2004         2004
                                                                     -----------   -----------
                                                                     (UNAUDITED)
<S>                                                                  <C>           <C>
Current Assets:
     Cash and Cash Equivalents                                       $   114,032   $ 3,991,631
     Accounts Receivable, less allowance for
        doubtful accounts ($200,202 and $200,598)                      4,569,218     3,519,418
     Inventories                                                       5,635,021     4,123,397
     Other Current Assets                                                408,916       274,285
                                                                     -----------   -----------
Total Current Assets                                                  10,727,187    11,908,731
                                                                     -----------   -----------

Property and Equipment
     Land, Buildings & Improvements                                    7,241,898     5,114,341
     Machinery, Equipment, Furniture & Fixtures                        6,455,589     6,064,877
                                                                     -----------   -----------
Total Property and Equipment                                          13,697,487    11,179,218
     Less: Accumulated Depreciation and Amortization                   5,724,738     5,157,452
                                                                     -----------   -----------
Net Property and Equipment                                             7,972,749     6,021,766
                                                                     -----------   -----------

Goodwill, less accumulated Amortization of $1,348,569                  2,731,717     2,731,717
Identifiable intangible asset, less accumulated Amortization
     of $519,000                                                       4,032,323          --
Other Assets                                                             260,484       426,108
                                                                     -----------   -----------

Total Assets                                                         $25,724,460   $21,088,322
                                                                     ===========   ===========

        LIABILITIES & STOCKHOLDERS' EQUITY

Current Liabilities:
     Accounts Payable                                                $ 3,288,482   $ 1,878,683
     Current Maturities of Long-term Debt                                170,745       166,251
     Accrued Expenses:
        Income Taxes                                                     232,423          --
        Compensation                                                   1,008,020       940,158
        Acquisition Liability                                          1,257,114          --
        Other                                                          1,454,007       915,777
                                                                     -----------   -----------
Total Current Liabilities                                              7,410,791     3,900,869
                                                                     -----------   -----------

Long-Term Debt                                                         1,795,245     1,926,832
Deferred Income Taxes                                                    662,000       646,000
                                                                     -----------   -----------
Total Liabilities                                                      9,868,036     6,473,701
                                                                     -----------   -----------

Stockholders' Equity
     Common Stock $.20 par value: Authorized shares, 10,000,000;
        Issued shares (4,487,728 and 4,485,728)                          897,546       897,146
     Paid-in Capital                                                   1,415,506     1,426,435
     Retained Earnings                                                21,714,159    20,576,497
                                                                     -----------   -----------
                                                                      24,027,211    22,900,078
     Less: Treasury stock, at cost: 1,663,493 and 1,686,840 shares     8,170,787     8,285,457
                                                                     -----------   -----------
Total Stockholders' Equity                                            15,856,424    14,614,621
                                                                     -----------   -----------
Total Liabilities and Stockholders' Equity                           $25,724,460   $21,088,322
                                                                     ===========   ===========
</TABLE>

    The accompanying notes are an integral part of the financial statements.


                                       1
<PAGE>

                            DECORATOR INDUSTRIES, INC
                             STATEMENTS OF EARNINGS
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                  For the Thirteen Weeks Ended                For the Thirty-Nine Weeks Ended
                                                  ----------------------------                -------------------------------
                                            October 2, 2004      September 27, 2003       October 2, 2004       September 27, 2003
                                            ---------------      ------------------       ---------------       ------------------

<S>                                      <C>           <C>      <C>           <C>       <C>           <C>      <C>          <C>
   Net Sales                             $ 12,123,515  100.00%  $10,984,598   100.00%   $ 39,236,393  100.00%  $ 31,531,366 100.00%
   Cost of Products Sold                    9,587,728   79.08%    8,632,287    78.59%     31,034,588   79.10%    24,658,537  78.20%
                                         ------------           -----------             ------------           ------------
   Gross Profit                             2,535,787   20.92%    2,352,311    21.41%      8,201,805   20.90%     6,872,829  21.80%

   Selling and Administrative Expenses      1,908,195   15.74%    1,677,318    15.27%      5,885,577   15.00%     4,878,209  15.47%
                                         ------------           -----------             ------------           ------------
   Operating Income                           627,592    5.18%      674,993     6.14%      2,316,228    5.90%     1,994,620   6.33%

   Other Income (Expense)
        Interest and Investment Income         20,148    0.17%       35,258     0.32%         73,624    0.19%        77,220   0.24%
        Interest Expense                      (28,755)  -0.24%      (16,104)   -0.14%        (83,825)  -0.21%       (39,890) -0.13%
                                         ------------           -----------             ------------           ------------
   Earnings Before Income Taxes               618,985    5.11%      694,147     6.32%      2,306,027    5.88%     2,031,950   6.44%
   Provision for Income Taxes                 250,000    2.07%      275,000     2.50%        915,000    2.33%       807,000   2.56%
                                         ------------           -----------             ------------           ------------

   Net Income                            $    368,985    3.04%  $   419,147     3.82%   $  1,391,027    3.55%  $  1,224,950   3.88%
                                         ============           ===========             ============           ============


   EARNINGS PER SHARE
        Basic                            $       0.13           $      0.15             $       0.49           $       0.44
                                         ============           ===========             ============           ============

        Diluted                          $       0.12           $      0.15             $       0.47           $       0.44
                                         ============           ===========             ============           ============

   Weighted Average Number of Shares Outstanding
        Basic                               2,820,107             2,795,166                2,813,256              2,793,207
        Diluted                             2,993,534             2,829,568                2,959,435              2,811,246
</TABLE>



    The accompanying notes are an integral part of the financial statements.

                                       2
<PAGE>

                            DECORATOR INDUSTRIES, INC
                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                         For the Thirty-nine Weeks Ended
                                                         -------------------------------
                                                       October 2, 2004   September 27, 2003
                                                       ---------------   ------------------


<S>                                                      <C>                <C>
Cash Flows From Operating Activities:
   Net Income                                            $ 1,391,027        $ 1,224,950
   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities
      Depreciation and Amortization                        1,103,252            525,261
      Provision for Losses on Accounts Receivable               --               30,000
      Deferred Taxes                                          13,000             87,000
      (Gain) Loss on Disposal of Assets                          (62)            11,864
   Increase (Decrease) from Changes in:
      Accounts Receivable                                 (1,049,800)        (1,226,026)
      Inventories                                           (254,510)           201,767
      Prepaid Expenses                                      (131,631)          (105,254)
      Other Assets                                           165,624            100,170
      Accounts Payable                                     1,409,799            696,997
      Accrued Expenses                                       838,515             99,100
                                                         -----------        -----------
Net Cash Provided by Operating Activities                  3,485,214          1,645,829
                                                         -----------        -----------

Cash Flows From Investing Activities:
   Net cash paid for acquisitions                         (4,882,733)              --
   Capital Expenditures                                   (2,209,615)          (694,064)
   Proceeds from Property Dispositions                         5,852                900
                                                         -----------        -----------
Net Cash Used in Investing Activities                     (7,086,496)          (693,164)
                                                         -----------        -----------

Cash Flows From Financing Activities:
   Long-term Debt Payments                                  (127,093)          (105,062)
   Dividend Payments                                        (253,364)          (251,359)
   Proceeds from Exercise of Stock Options                    42,640               --
   Issuance of Stock for Directors Trust                      61,500             30,000
   Proceeds on Debt from Building                               --              640,000
                                                         -----------        -----------
Net Cash (Used in) Provided by Financing Activities         (276,317)           313,579

Net (Decrease) Increase in Cash and Cash Equivalents      (3,877,599)         1,266,244
Cash and Cash Equivalents at Beginning of Year             3,991,631          2,117,762
                                                         -----------        -----------

Cash and Cash Equivalents at End of Period               $   114,032        $ 3,384,006
                                                         ===========        ===========

Supplemental Disclosures of Cash Flow Information:
   Cash Paid for:
      Interest                                           $    39,646      $    26,043
      Income Taxes                                       $   663,869      $   533,059

</TABLE>

    The accompanying notes are an integral part of the financial statements.

                                       3
<PAGE>


                           DECORATOR INDUSTRIES, INC.
                          NOTES TO FINANCIAL STATEMENTS
         THIRTY-NINE WEEKS ENDED OCTOBER 2, 2004 AND SEPTEMBER 27, 2003
                                   (UNAUDITED)

NOTE 1.           In the opinion of management, the accompanying unaudited
                  financial statements contain all adjustments necessary to
                  present fairly the Company's financial position as of October
                  2, 2004, the changes therein for the thirty-nine week period
                  then ended and the results of operations for the thirty-nine
                  week periods ended October 2, 2004 and September 27, 2003.

NOTE 2.           The financial statements included in the Form 10-Q are
                  presented in accordance with the requirements of the form and
                  do not include all of the disclosures required by accounting
                  principles generally accepted in the United States of America.
                  For additional information, reference is made to the Company's
                  annual report on Form 10-K for the year ended January 3, 2004.
                  The results of operations for the thirty-nine week periods
                  ended October 2, 2004 and September 27, 2003 are not
                  necessarily indicative of operating results for the full year.

NOTE 3.           INVENTORIES

                  Inventories at October 2, 2004 and January 3, 2004 consisted
                  of the following:


                                        October 2, 2004    January 3, 2004
                                        ---------------    ---------------
         Raw Material and supplies         $4,990,694        $3,506,619
         In Process and Finished Goods        644,327           616,778
                                           ----------        ----------
         Total Inventory                   $5,635,021        $4,123,397
                                           ==========        ==========



NOTE 4.           EARNINGS PER SHARE

                  Basic earnings per share is computed by dividing net income by
                  weighted-average number of shares outstanding. Diluted
                  earnings per share includes the dilutive effect of stock
                  options. In accordance with SFAS No. 128, the following is a
                  reconciliation of the numerators and denominators of the basic
                  and diluted EPS computations.
<TABLE>
<CAPTION>

                                                    For the Thirteen Weeks Ended         For the Thirty-Nine Weeks Ended
                                                    ----------------------------         -------------------------------
                                                  October 2, 2004  September 27, 2003  October 2, 2004  September 27, 2003
                                                  ---------------  ------------------  ---------------  ------------------
<S>                                                  <C>               <C>                <C>               <C>
         Numerator:
              Net income                             $  368,985        $  419,147         $1,391,027        $1,224,950
                                                     ==========        ==========         ==========        ==========
         Denominator:
              Weighted-average number of
                  common shares outstanding           2,820,107         2,795,166          2,813,256         2,793,207

              Dilutive effect of
                  stock options on net income           173,427            34,402            146,179            18,039
                                                     ----------        ----------         ----------        ----------

                                                      2,993,534         2,829,568          2,959,435         2,811,246
                                                     ==========        ==========         ==========        ==========

              Diluted earnings per share:            $     0.12        $     0.15         $     0.47        $     0.44
                                                     ==========        ==========         ==========        ==========
</TABLE>



                                       4
<PAGE>


NOTE 5.           BUSINESS ACQUISITION

                  On January 22, 2004, the Company entered into an agreement,
                  effective January 26, 2004, to purchase the land, building,
                  machinery, equipment, inventory and other assets of Fleetwood
                  Enterprises Inc.'s ("Fleetwood") drapery operation in Douglas,
                  Georgia for a purchase price of $4 million in cash, plus an
                  additional amount for inventory of up to $1,257,114. Payment
                  for the inventory is due to Fleetwood on January 24, 2005 and
                  will include interest at 4%.

                  In connection with the acquisition, the Company and Fleetwood
                  entered into an agreement for the Company to be the exclusive
                  supplier of Fleetwood's drapery, bedspread, and other decor
                  requirements for a period of six years. If, at the end of
                  three years, Fleetwood is satisfied with the Company's
                  performance under this agreement, it will extend the terms of
                  this agreement an additional three years.

                  The acquired business was engaged in the manufacture of
                  curtains, valances, bedspreads and other decor items.
                  Fleetwood used the acquired business to supply most of its
                  Manufactured Housing and some of its Recreational Vehicle
                  requirements for these items. Sales to other customers were
                  negligible.

                  The Company has assigned the excess costs of this acquisition
                  over the value of the asset acquired to an identifiable
                  intangible asset. This intangible will be amortized over the
                  life of the agreement with Fleetwood. The agreement to expand
                  its relationship and become Fleetwood's exclusive supplier of
                  the above mentioned products was the primary factor in
                  compelling the Company to make the asset purchase. The asset
                  is currently being amortized over six years. If the agreement
                  is extended an additional three years, the intangible will be
                  amortized over the nine year period. The remaining benefits of
                  the agreement with Fleetwood exceed the remaining capitalized
                  cost of the intangible asset.

                  The Company is unable to provide meaningful pro-forma
                  financial statements for this combination, because it is
                  operating the business on a substantially different basis than
                  its predecessor.

                  The Company used internal funds for the purchase price paid at
                  closing and will likely generate sufficient funds internally
                  to satisfy the remaining obligation due in January 2005. At
                  the date of closing, the Company's $5,000,000 line of credit
                  was unused. The Company does expect to use its line of credit
                  for working capital requirements during 2004.

                  Fleetwood was the Company's largest customer in 2003,
                  representing approximately 26% of total sales. The combined
                  sales of the acquired business and the Company's to
                  Fleetwood's Manufactured Housing and Recreational Vehicle
                  businesses would have been approximately 36% of the Company's
                  total sales in 2003.

                  The total acquisition cost and liability is as follows:

         Total Acquisition Cost                          $6,139,847
         Cash Paid through October 2, 2004                4,882,733
                                                         ----------

         Acquisition Liability at October 2, 2004        $1,257,114
                                                         ==========


                                       5
<PAGE>


Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations.

CAUTIONARY STATEMENT: THIS QUARTERLY REPORT ON FORM 10-Q MAY CONTAIN STATEMENTS
RELATING TO FUTURE EVENTS, INCLUDING RESULTS OF OPERATIONS, THAT ARE CONSIDERED
"FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS REPRESENT THE
COMPANY'S EXPECTATIONS OR BELIEF AS TO FUTURE EVENTS AND, BY THEIR VERY NATURE,
ARE SUBJECT TO RISKS AND UNCERTAINTIES WHICH MAY RESULT IN ACTUAL EVENTS
DIFFERING MATERIALLY FROM THOSE ANTICIPATED. IN PARTICULAR, FUTURE OPERATING
RESULTS AND FUTURE LIQUIDITY WILL BE AFFECTED BY THE LEVEL OF DEMAND FOR
RECREATIONAL VEHICLES, MANUFACTURED HOUSING AND HOTEL/MOTEL ACCOMMODATIONS AND
MAY BE AFFECTED BY CHANGES IN ECONOMIC CONDITIONS, INTEREST RATE FLUCTUATIONS,
COMPETITIVE PRODUCTS AND PRICING PRESSURES WITHIN THE COMPANY'S MARKETS, THE
COMPANY'S ABILITY TO CONTAIN ITS MANUFACTURING COSTS AND EXPENSES, AND OTHER
FACTORS. FORWARD-LOOKING STATEMENTS BY THE COMPANY SPEAK ONLY AS OF THE DATE
MADE, AND THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE SUCH
STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE
OCCURRENCE OF UNANTICIPATED EVENTS.


FINANCIAL CONDITION

The Company's financial ratios changed significantly as illustrated below. The
financial condition remains strong, and the long-term debt to total
capitalization ratio remained low at 10.17%
<TABLE>
<CAPTION>

                                   October 2, 2004       July 3, 2004       April 3, 2004     January 3, 2004
                                   ---------------       ------------       -------------     ---------------

<S>                                      <C>                 <C>                <C>                <C>
Current Ratio                            1.45                1.58               1.48               3.05
Quick Ratio                              0.69                0.82               0.76               2.00
LT Debt to Total Capital                10.17%              10.59%             11.18%             11.65%
Working Capital                       $3,316,396          $4,341,863         $3,608,081         $8,007,862
</TABLE>


The change in the Company's financial ratios reflects the acquisition in January
2004 of Fleetwood's drapery operation in Douglas, Georgia. The Company paid
$4,000,000 at closing and on January 24, 2005 will pay up to $1,257,114, plus
interest at 4%, for inventory purchased from Fleetwood. The Company used
internal funds for the purchase price paid at closing and will likely generate
sufficient funds to satisfy the remaining obligation.

Days sales outstanding in accounts receivable were 33.5 days at October 2, 2004,
compared to 37.3 days at September 27, 2003. Net accounts receivable decreased
by $41,437 from September 27, 2003 to October 2, 2004, due to the improvement in
days sales outstanding. Inventories increased by $1,448,718 from September 27,
2003 to October 2, 2004. This increase is attributable to the acquisition of the
Fleetwood Drapery operation and to the overall increase in business.

In January 2004, the Company began assigning certain account receivables under a
"Receivables Servicing and Credit Approved Receivables Purchasing Agreement"
with CIT Group/Commercial Services Inc. Only receivables from sales to the
Hospitality industry may be assigned to CIT. Under the agreement CIT provides
credit checking, credit approval, and collection responsibilities for the
assigned receivables. If CIT approves an order from a Hospitality customer and
the resulting receivables are not paid or disputed by the Customer within ninety
days of sale, CIT will pay the receivable to the Company and assume ownership of
the receivable. CIT begins collection efforts for the assigned receivables (both
approved and not approved) when they are due (Hospitality sales are made on Net
30 terms). Approved receivables were approximately $600,000 at the end of the
third quarter. Hospitality customers are instructed to make payments directly to
CIT and CIT then wires collected funds to the Company. The Company pays CIT
six-tenths of a percent of
                                       6
<PAGE>

all assigned receivables. Management believes this cost will be mostly offset by
reductions in Bad Debt expense and collection costs. The Company entered into
this arrangement to take advantage of CIT's extensive credit checking and
collection capabilities. Management believes this arrangement will improve
liquidity.

Capital expenditures, excluding the assets acquired from Fleetwood, were
$2,209,615 for the thirty-nine weeks ended October 2, 2004. This was primarily
due to the purchase of a manufacturing facility in Phoenix, Arizona for
$1,524,099, which closed in August 2004. The Company used its line of credit to
finance a portion of this purchase. Also contributing to the increase in capital
expenditures was $332,920 for a building addition to the Company's Elkhart,
Indiana facility, which increased the Company's pleated shade capacity by 50%.
As of October 2, 2004, the Company had no borrowings against its $5,000,000 line
of credit.

The opening of the Phoenix facility will not create a material adverse effect on
the liquidity of the Company. The resources required for the operation will be
similar to those required at the Company's other facilities. During its first
periods of operations, this facility will negatively affect the financial
performance of the Company. A positive contribution should be realized sometime
during 2005.

Management does not foresee any events which will adversely affect its liquidity
during 2004.


RESULTS OF OPERATIONS

The following tables show the percentage relationship to net sales of certain
items in the Company's Statements of Earnings:
<TABLE>
<CAPTION>

                                              Third         Third
                                             Quarter       Quarter          YTD            YTD
            Earnings Ratios                   2004           2003           2004          2003
            ---------------                ------------  -------------  -------------  ------------
<S>                                             <C>            <C>            <C>           <C>
Net sales                                       100.0%         100.0%         100.0%        100.0%
Cost of products sold                            79.08          78.59          79.10         78.20
Gross margin                                     20.92          21.41          20.90         21.80
Selling and administrative                       15.74          15.27          15.00         15.47
Interest and investment income                   (0.17)         (0.32)         (0.19)        (0.24)
Interest expense                                  0.24           0.14           0.21          0.13
Income taxes                                      2.07           2.50           2.33          2.56
Net income                                        3.04           3.82           3.55          3.88

</TABLE>

THIRTEEN WEEK PERIOD ENDED OCTOBER 2, 2004, (THIRD QUARTER 2004) COMPARED TO
THIRTEEN WEEK PERIOD ENDED SEPTEMBER 27, 2003, (THIRD QUARTER 2003)

Net sales for the Third Quarter 2004 were $12,123,515, compared to $10,984,598
for the same period in the previous year, a 10.4% increase. Excluding sales
arising from the acquisition of Fleetwood's drapery operation, net sales of
existing business were virtually flat. Sales to the Company's recreational
vehicle customers increased about 11.3% compared to the same period of the prior
year, partially due to the additional Fleetwood business. Sales to the Company's
manufactured housing customers increased by 27.4%, due to the additional
Fleetwood business. Sales to the Company's hospitality customers decreased about
6.4% for the quarter ended October 2, 2004 compared to the same quarter of the
prior year.

                                       7
<PAGE>


Cost of products sold increased to $9,587,728, or 79.1% in the Third Quarter
2004, compared to $8,632,287, or 78.6% in the Third Quarter 2003.

Selling and administrative expenses were $1,908,195 in the Third Quarter 2004
versus $1,677,318 in the Third Quarter 2003. The increase is largely due to
expenses associated with the Fleetwood acquisition, including amortization of
the intangible asset of $187,500. As a percentage of sales, selling and
administrative expenses increased from 15.3% to 15.7%. Excluding the
amortization of the intangible asset, selling and administrative expenses as a
percentage of sales would have decreased to 14.2% in the Third Quarter 2004.

Interest expense increased to $28,755 in the Third Quarter 2004 from $16,104 in
the Third Quarter 2003 mostly due to interest on the inventory purchased from
Fleetwood in January 2004.

Net income decreased to $368,985 in the Third Quarter of 2004 compared to
$419,147 in the Third Quarter of 2003, a decrease of 12.0%. This decrease is
largely the result of increased administrative expenses, and a small increase in
the cost of products sold percentage.


THIRTY-NINE WEEK PERIOD ENDED OCTOBER 2, 2004, (FIRST NINE MONTHS 2004) COMPARED
TO THIRTY-NINE WEEK PERIOD ENDED SEPTEMBER 27, 2003, (FIRST NINE MONTHS 2003)

Net sales for the First Nine Months 2004 were $39,236,393, compared to
$31,531,366 for the same period in the previous year, a 24.4% increase.
Excluding sales arising from the acquisition of Fleetwood's drapery operation,
net sales of existing business increased 12.4%. Sales to the Company's
recreational vehicle customers increased about 29.7% compared to the same period
of the prior year, partially due to the additional Fleetwood business. Sales to
the Company's manufactured housing customers increased by 31.6%, due to the
additional Fleetwood business. Sales to the Company's hospitality customers
increased about 4.6% for the nine months ended October 2, 2004 compared to the
same period of the prior year.

Cost of products sold increased to $31,034,588, or 79.1% in the First Nine
Months 2004, compared to $24,658,537, or 78.2% in the First Nine Months 2003.

Selling and administrative expenses were $5,885,577 in the First Nine Months
2004 versus $4,878,209 in the First Nine Months 2003. The increase is largely
due to expenses associated with the Fleetwood acquisition, including
amortization of the intangible asset of $519,000, and to increases in personnel
costs. As a percentage of sales, selling and administrative expenses decreased
from 15.5% to 15.0% due to increased sales volume. Excluding the amortization of
the intangible asset, selling and administrative expenses would have decreased
to 13.7% for the First Nine Months 2004.

Interest expense increased to $83,825 in the First Nine Months 2004 from $39,890
in the First Nine Months 2003 because of interest on the inventory purchased
from Fleetwood in January 2004, interest on the loan secured by the Company's
Elkhart, Indiana facility which was not outstanding during the entire First Nine
Months 2003, and periodic borrowings on the Company's line of credit.

Net income increased to $1,391,027 in the First Nine Months 2004 compared to
$1,224,950 in the First Nine Months 2003, an increase of 13.6%. This increase is
largely the result of increased sales, partially offset by increased
administrative expenses.

                                       8
<PAGE>


EBITDA

EBITDA represents income before income taxes, interest expense, depreciation and
amortization and is an approximation of cash flow from operations before tax.
The Company uses EBITDA as an internal measure of performance and believes it is
a useful and commonly used measure of financial performance in addition to
income before taxes and other profitability measures under Generally Accepted
Accounting Principals ("GAAP")

EBITDA is not a measure of performance under GAAP. EBITDA should not be
construed as an alternative to operating income and income before taxes as an
indicator of the Company's operations in accordance with GAAP. Nor is EBITDA an
alternative to cash flow from operating activities in accordance with GAAP. The
Company's definition of EBITDA can differ from that of other companies.

The following table reconciles Net Income, the most comparable measure under
GAAP to EBITDA for the Third Quarter 2004 and 2003, and the First Nine Months
2004 and 2003.
<TABLE>
<CAPTION>

                              For the Thirteen Weeks Ended       For the Thirty-Nine Weeks Ended
                              ----------------------------       -------------------------------
                          October 2, 2004  September 27, 2003  October 2, 2004   September 27, 2003
                          ---------------  ------------------  ---------------   ------------------

<S>                          <C>                   <C>               <C>                  <C>
Net Income                   $  368,985        $  419,147         $1,391,027        $1,224,950
Add:
     Income tax                 250,000           275,000            915,000           807,000
     Interest Expense            28,755            16,104             83,825            39,890
     Depreciation and
        amortization            384,982           174,956          1,103,252           525,261
                             ----------        ----------         ----------        ----------

EBITDA                       $1,032,722        $  885,207         $3,493,104        $2,597,101
                             ==========        ==========         ==========        ==========
</TABLE>

The Company's EBITDA increased 17% and 35% for the Third Quarter 2004 and First
Nine Months 2004, respectively, compared to the same periods of the prior year.

Item 4.  Controls and Procedures.

(a)      The Company's Chief Executive Officer and Chief Financial Officer have
         reviewed the effectiveness of the Company's disclosure controls and
         procedures as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)
         within 90 days of the date of this report. These officers have
         concluded that the Company's disclosure controls and procedures were
         adequate and effective to ensure that material information relating to
         the financial statements has been disclosed.

(b)      There were no significant changes in the Company's internal controls or
         in other factors that could significantly affect the Company's internal
         controls and procedures subsequent to the review date, nor any
         significant deficiencies or material weaknesses in such internal
         controls and procedures requiring corrective actions.

                                       9
<PAGE>


                           PART II - OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K.


         (a)      Exhibits filed herewith:

                     31.1  -  Certification of President

                     31.2  -  Certification of Treasurer

                     32  -  Certificate required by 18 U.S.C.ss.1350.


         (b)      No reports on Form 8-K were filed by the Company during the
                  quarterly period ended October 2, 2004.

                                       10
<PAGE>



                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                     DECORATOR INDUSTRIES, INC.
                                             (Registrant)



     Date: November 16, 2004         By: /s/      William A.Bassett
           ----------------              ------------------------------------
                                              William A. Bassett, President


     Date: November 16, 2004         By: /s/       Michael K. Solomon
           -----------------             ------------------------------------
                                              Michael K. Solomon, Treasurer


                                       11