Rowe sees 1Q rebound
By Furniture Today Staff -- Furniture Today, April 1, 2002
McLean, Va. — Rowe Cos. reported net income of $699,000 in its first quarter ended March 3, a turnaround from a loss a year earlier, as shipments rose 1.5% to $81.6 million.
"We are pleased to see the rewards from all our hard work," said Gerald Birnbach, chairman and president of the manufacturer and retailer. "The sales teams have worked hard to replace the business lost last year." Rowe was hurt by the demise of HomeLife, a significant customer.
Gross profit firmed to 33.7% of sales in the first quarter, up from 32.9% in the comparable period a year ago, when Rowe reported a net loss of $806,000 on sales of $80.4 million.
Birnbach said new financing Rowe recently secured will "provide greater flexibility, increased credit availability and lower pricing."
Rowe agreed with Fleet Capital and CIT/Commercial Services on a $45 million senior secured revolving credit facility, while Bank of America and SunTrust Bank agreed to restructure existing debt. Some funds from the new facility will be used to pay down other debt.
"While we still have a long way to go, we are pleased with the progress to date. We will continue to work to further improve our operating results and financial health," said Birnbach.
Rowe is the parent of upholstery manufacturers Rowe Furniture and Mitchell Gold and retailers Storehouse, with 40 stores, and Home Elements, with 19 stores.
| The Rowe Cos. | |||
|---|---|---|---|
| Owns Rowe Furniture, The Mitchell Gold Co., Home Elements and Storehouse | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 3/3 | 2002 | 2001 | Change |
| Sales | $81,623,000 | $80,428,000 | 1.5% |
| Operating income | 2,074,000 | (235,000) | — |
| Net income | 699,000 | (a)(806,000) | — |
| Earnings per share | 0.05 | (0.06) | — |
| (a) Includes a $296,000 income tax benefit. | |||
