Chromcraft Revington, Inc. (NYSE Amex: CRC) today reported its
results for the third quarter and first nine months of 2011. Sales
for the third quarter of 2011 were $13,226,000 and the net loss was
$1,042,000 or 16.9% lower than the prior quarter, marking the third
consecutive quarter of reduced losses. The net loss for the third
quarter of 2011 of $1.0 million was $0.9 million or 46.1% lower
than the loss in the same period in 2010.
Our improved operating results in the third quarter as compared
to the same period in 2010 and the second quarter of 2011 were
primarily due to an improved gross margin as a percentage of sales
resulting largely from lower material costs and a favorable product
sales mix along with a reduction in selling, general and
administrative expenses. The favorable product mix reflected
improved commercial sales in the third quarter. Residential
furniture shipments in the third quarter of 2011 were lower as
compared to same period in 2010 and the second quarter of 2011
primarily due to continued weak consumer demand for residential
furniture in our product categories and price segment, which we
believe is consistent with industry trends; the continuing economic
downturn which reflects the ongoing labor and housing market
struggles and high consumer debt levels; and import
competition.
Sales for the three months ended October 1, 2011 represented a
4.2% decrease from the same period last year primarily due to lower
shipments of residential furniture, particularly occasional
furniture and home entertainment furniture. The lower sales of home
entertainment furniture in the third quarter is primarily due to
the timing of shipments on orders for new product groupings which
are expected to ship in the fourth quarter of 2011.
Sales for the nine months ended October 1, 2011 were $39,528,000
and the net loss was $4,100,000. Sales for the first nine months of
2011 decreased 5.3% from the prior year period primarily due to
lower shipments of occasional and home entertainment furniture, and
to a lesser extent dining room furniture, partially offset by
higher sales of bedroom furniture due to the introduction of a new
bedroom line that began shipping in the second quarter of 2011.
The net loss for the nine months ended October 1, 2011 of $4.1
million was $0.2 million or 3.7% lower than the same period in
2010. The improved loss was primarily due to a reduction in
selling, general and administrative expenses resulting largely from
lower sales commissions and marketing related expenses.
Excluding receipt of a tax refund of $6.6 million in 2010, we
used $3.8 million less cash in operating activities in the first
nine months of 2011 as compared to the prior year period, primarily
due to less cash used to fund working capital. The Company had cash
of $1.6 million at October 1, 2011, no bank borrowings during the
first nine months of 2011, and no outstanding loan balance at
October 1, 2011.
Commenting on these results, Ronald H. Butler, Chairman and
Chief Executive Officer, said, “Despite the continuing difficult
retail operating environment, we are encouraged by our third
consecutive quarterly reduction in net loss, which represented a
46% improvement over the prior year quarter. These improvements
reflect increased order activity and shipments of contract
commercial products, cost containment initiatives and reduced
selling and marketing expenses. Although the ongoing difficult
operating environment in the residential furniture market will
continue to be challenging, we expect fourth quarter residential
sales to be improved by recent incoming orders of a new line of
home entertainment furniture. In these uncertain economic times, we
have diligently focused on our cash flow and balance sheet
management along with controlling operating costs to be in line
with our revenue base.”
Mr. Butler continued, “In line with this strategy, we recently
refinanced our credit facility prior to its scheduled expiration in
June 2012 and entered into a new three year secured revolving
credit facility (the “New Facility”) with First Business Capital
Corp., a subsidiary of First Business Bank, of up to $10 million
based upon qualified accounts receivable of the Company. We believe
this new credit facility provides us with the borrowing capacity to
meet our anticipated cash operating needs while reducing our
overall expected borrowing costs.”
Chromcraft Revington® businesses design residential and
commercial furniture marketed throughout North America. The Company
wholesales its residential furniture products under Chromcraft®,
Cochrane®, Peters-Revington®, Southern Living®, and CR Kids &
Beyond® primary brands. It sells commercial furniture under the
Chromcraft® brand. The Company sources furniture from overseas
suppliers, with domestic contract specialty facilities, and
operates one U.S. manufacturing facility for its commercial
furniture and motion based casual dining furniture in
Mississippi.
This release contains forward-looking statements that are based
on current expectations and assumptions. These forward-looking
statements can be generally identified as such because they include
future tense or dates, or are not historical or current facts, or
include words such as “believe,” “may,” “expect,” “intend,” “plan,”
“anticipate,” or words of similar import. Forward-looking
statements are not guarantees of performance or outcomes and are
subject to certain risks and uncertainties that could cause actual
results or outcomes to differ materially from those reported,
expected, or anticipated as of the date of this release.
Among such risks and uncertainties that could cause actual
results or outcomes to differ materially from those reported,
expected or anticipated are general economic conditions, including
the impact of the current recession in the United States and
elsewhere; import and domestic competition in the furniture
industry; our ability to execute our business strategies, implement
our new business model and successfully complete our business
transition; our ability to grow sales and reduce expenses to
eliminate our operating losses; the continuation of the recent
improvement in the U.S. office furniture market; our ability to
sell the right product mix; supply disruptions with products
manufactured in China and other Asian countries; continued credit
availability under the Company’s New Facility; market interest
rates; consumer confidence levels; cyclical nature of the furniture
industry; consumer and business spending; changes in relationships
with customers; customer acceptance of existing and new products;
new home and existing home sales; financial viability of our
customers and their ability to continue or increase product orders;
loss of key management; and other factors that generally affect
business; and certain risks set forth in the Company’s annual
report on Form 10-K for the year ended December 31, 2010.
The Company does not undertake any obligation to update or
revise publicly any forward-looking statements to reflect
information, events or circumstances after the date of such
statements or to reflect the occurrence of anticipated or
unanticipated events or circumstances.
Condensed Consolidated Statements of Operations (unaudited)
Chromcraft Revington, Inc. (In thousands, except per share data)
Three
Months Ended Nine Months Ended October 1,
October 2, October 1, October 2,
2011
2010 2011 2010 Sales
$ 13,226 $ 13,808 $ 39,528 $ 41,723 Cost of sales
10,709 11,716 32,818
34,256 Gross margin 2,517 2,092 6,710 7,467
Selling, general and administrative expenses 3,491
3,951 10,598 11,499
Operating loss (974 ) (1,859 ) (3,888 ) (4,032 )
Interest expense (68 ) (74 ) (212 )
(224 ) Net loss $ (1,042 ) $ (1,933 ) $ (4,100 ) $ (4,256 )
Basic and diluted loss per share of common stock $ (.22 ) $
(.41 ) $ (.86 ) $ (.91 ) Shares used in computing loss per
share 4,791 4,703 4,765 4,685 Condensed Consolidated
Balance Sheets (unaudited) Chromcraft Revington, Inc. (In
thousands) October 1,
December 31, 2011 2010
Assets Cash $ 1,583 $
4,179 Accounts receivable, less allowance of $140 in 2011 and $300
in 2010 6,770 7,552 Inventories 14,460 14,191 Prepaid expenses and
other 627 711 Current assets 23,440 26,633
Property, plant and equipment, net 6,667 7,235 Other assets
664 579 Total assets $ 30,771 $ 34,447
Liabilities and Stockholders' Equity Accounts payable
$ 4,312 $ 4,144 Accrued liabilities 3,322 3,346
Current liabilities 7,634 7,490 Deferred compensation 363
461 Other long-term liabilities 1,692 1,667 Total
liabilities 9,689 9,618 Stockholders' equity 21,082
24,829 Total liabilities and stockholders' equity $
30,771 $ 34,447 Condensed Consolidated Statements of
Cash Flows (unaudited) Chromcraft Revington, Inc. (In thousands)
Nine Months Ended October 1, October 2,
2011 2010
Operating Activities Net loss $ (4,100) $
(4,256)
Adjustments to reconcile net loss to cash
provided by (used in) operating activities:
Depreciation and amortization expense 593 682 Non-cash share based
and ESOP compensation expense 353 308 Provision for doubtful
accounts 23 72 Non-cash inventory write-downs 171 278 Non-cash
accretion expense 26 24 Gain on disposal of assets (2) (5) Changes
in operating assets and liabilities: Accounts receivable 759 (250)
Refundable income taxes - 6,578 Inventories (440) (1,246) Prepaid
expenses and other 84 (358) Accounts payable and accrued
liabilities 144 (1,586) Long-term liabilities and assets (184) (18)
Cash provided by (used in) operating activities
(2,573) 223
Investing Activities Capital expenditures
(25) (155) Proceeds on disposal of assets 2 5
Cash used
in investing activities (23) (150)
Change in cash
(2,596) 73
Cash at beginning of the period 4,179
3,636
Cash at end of the period $ 1,583 $ 3,709
Chromcraft Revington (AMEX:CRC)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Chromcraft Revington (AMEX:CRC)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024