FBI sales fall 20.1%
By Larry Thomas -- Furniture Today, February 16, 2009
ST. LOUIS — ST. LOUIS — Furniture Brands International reported a fourth-quarter net loss of $341.6 million as sales tumbled 20.1%.
Much of the loss was due to several one-time, non-cash charges — the largest of which was a $202 million reduction in the value of intangible assets.
“We are doing the right things and taking the right actions in the midst of an unprecedented economic downturn,” said Ralph Scozzafava, chairman and CEO. “With many of our internal issues now behind us, future financial performance and reported results will better reflect the execution of the company's strategic plan and the value of our brands.”
In addition to the intangibles writedown, the company also reduced the value of its tax assets by $102.9 million and incurred a variety of other charges related to plant closures, inventory writedowns and the closing of branded stores.
Scozzafava said the company's cash position was strong, noting that Furniture Brands had only $190 million in long-term debt at the end of 2008. That's down from $301 million at the end of 2007.
Sales for the fourth quarter totaled $403.4 million, down from $504.8 million in the fourth quarter of 2007.
The most recent quarter's loss, which equals $7 per share, compares with a loss of $40.7 million or 84 cents per share in the same quarter in 2007.
For all of 2008, sales were $1.74 billion, down 16.3% from $2.08 billion in 2007.
Last year's net loss totaled $373.6 million or $7.67 per share. That compares with a loss of $45.6 million or 94 cents per share in 2007.
Furniture Brands International
Owns Broyhill, Drexel Heritage, Henredon, Lane, Maitland-Smith and Thomasville
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| Quarter ended 12/31 | 2008 | 2007 | Change |
| (a) Includes charges for impairment of intangible assets of $202 million in the 2008 quarter and year and $7.1 million in the 2007 year. Also includes income tax charge of $12.5 million in the 2008 quarter and income tax benefit of $25.2 million in the 2007 quarter, $15.4 million in the 2008 year and $29.3 million in the 2007 year. Includes net earnings from discontinued operations of $1.1 million in the 2007 quarter, $29.9 million in the 2008 year and $5.6 million in the 2007 year. |
|||
| Sales | $403,353,000 | $504,786,000 | (20.1%) |
| Operating income | (125,244,000) | (63,724,000) | — |
| Net income (a) | (341,592,000) | (40,678,000) | — |
| Earnings per share | (7.00) | (0.84) | — |
| Year ended 12/31 | 2008 | 2007 | Change |
| Sales | $1,743,176,000 | $2,082,056,000 | (16.3%) |
| Operating income | (209,922,000) | (46,239,000) | — |
| Net income (a) | (373,641,000) | (45,649,000) | — |
| Earnings per share | (7.67) | (0.94) | — |
-
Furniture Brands posts $341.6 million loss
Feb 5, 2009
Specialty retailer LoveSac introduces new store design
Kincaid Furniture honors Jimmy and Rosalynn Carter for Habitat work
Belfort Furniture, Lawrance Furniture are NHFA Retailers of Year
Singapore furniture show expecting increased turnout
Furniture, mattress sales boost Conn's sales 37.6% in recent quarter
VIEW ALL GALLERIES
