DMI sales decline 7.3% for fiscal year
By Powell Slaughter -- Furniture Today, November 11, 2001
Louisville, Ky. — Case goods manufacturer and importer DMI Furniture reported sales of $97.1 million in the fiscal year ended Sept. 2, down 7.3% from last year.
Net income of $875,000 for the year was down 65.9% from fiscal 2000, partly because of a previously announced charge taken in the fourth quarter for the planned shutdown of its Dolly Madison promotional bedroom business.
In the fourth quarter, sales of $22.6 million were down 11.8% from a year earlier. DMI posted a loss of $381,000, compared with earnings of $555,000 in fourth-quarter 2000.
Sales were lower in 2001 in the company's DMI Desk, Commercial Office and Dolly Madison divisions. DMI's Wynwood and Home Styles residential divisions each saw sales grow almost 20%.
The decision to end Dolly Madison production in the first quarter of fiscal 2002 resulted in a charge of $775,000 pretax, or $481,000 after taxes. Dolly Madison typically represented 10% of sales.
Donald Dreher, DMI chairman and president, said DMI Desk didn't lose any customers this year. But customers' focus, especially at wholesale clubs, was on lower price points and that affected sales.
Wynwood and Home Styles both had strong October High Point markets and expect another year of double-digit growth, he said.
Commercial Office was down 6% to 7%, but that compared favorably to the 15% drop the industry experienced, Dreher said. DMI plans to begin sourcing from China a new, higher-end line of solid-wood and veneered commercial office furniture.
He said DMI now outsources about 65% of its total volume.
| DMI Furniture | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 9/1 (a) | 2001 | 2000 | Change |
| (a) The 2001 periods are 13 and 52 weeks; the 2000 periods are 14 and 53 weeks. (b) Includes a $481,000 after-tax restructuring charge in both periods. The 2001 quarter also includes a $96,000 income tax benefit. |
|||
| Sales | $22,572,000 | $25,590,000 | (11.8%) |
| Operating income | 708,000 | 1,425,000 | (50.3%) |
| Net income | (b)(381,000) | 555,000 | ------- |
| Earnings per share | (0.09) | 0.13 | ------- |
| Year ended 9/1 (a) | 2001 | 2000 | Change |
| Sales | $97,137,000 | $104,837,000 | (7.3%) |
| Operating income | 4,354,000 | 6,056,000 | (28.1%) |
| Net income | (b)875,000 | 2,565,000 | (65.9%) |
| Earnings per share | 0.20 | 0.60 | (66.7%) |
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