Rowe reports $1.1M loss in 3Q
By Furniture Today Staff -- Furniture Today, September 30, 2001
MCLEAN, Va. — The Rowe Companies reported a $1.1 million loss in its third quarter, but the loss was smaller than in the second quarter and beat analysts' consensus estimate.
The upholstery manufacturer and furniture retailer said net shipments came to $82.4 million in the quarter ended Sept. 2, down 4.9% from the comparable quarter a year earlier.
A loss of 9 cents per share was better than the consensus estimate of an 11-cent loss, according to ThomsonFN.com. The latest quarter's performance also was an improvement on the loss of $4.9 million, or 37 cents a share, the company posted in this year's second quarter ended June 3.
"The company continues to be affected by weak consumer confidence and reduced retail sales," said Gerald Birnbach, chairman and president. "But we were pleased with the lower loss we reported this quarter, compared to the prior two quarters, and were thinking that perhaps we were turning the corner.
"However, the terrible events of Sept. 11 are sure to have some impact on our operations; it remains to be seen how severe and long-lasting the impact will be," he said.
In last year's third quarter, the company reported earnings from continuing operations of $1 million and net earnings of $652,000 or 8 cents per share.
Also last week, Rowe said the New York Stock Exchange had told the company it has fallen below NYSE standards requiring listed companies to have market capitalization and stockholders' equity of $50 million each. At the close of trading Sept. 21, the company said it had a market cap of $26.1 million and total stockholders' equity of $46 million.
Rowe said it intends to submit a plan to the NYSE showing how it will comply with the standards within 18 months, as required by the exchange. If the NYSE rejects the plan, the stock could be delisted, although Rowe said that if that happens, it is confident it could find another trading venue.
Earlier in September, Rowe's board voted not to pay the dividend for the current quarter. The dividend had been running at an annual rate of 14 cents per share.
Rowe owns upholstery producers Rowe Furniture and Mitchell Gold and retailers Storehouse, with 43 stores, and Home Elements, with 20 stores.
| • The Rowe Companies | |||
|---|---|---|---|
| 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 9/2 | 2001 | 2000 | Change |
| Sales | $82,402,000 | $86,672,000 | (4.9%) |
| Operating income | (884,000) | 2,664,000 | — |
| Net income | (a)(1,124,000) | (b)652,000 | — |
| Earnings per share(c) | (0.09) | 0.05 | — |
| 9 months ended 9/2 | 2001 | 2000 | Change |
| Sales | $240,859,000 | $261,565,000 | (7.9%) |
| Operating income | (7,954,000) | 11,017,000 | — |
| Net income | (a)(6,808,000) | (b)4,228,000 | — |
| Earnings per share(c) | (0.52) | 0.31 | — |
| (a) Includes income tax benefits of $551,000 in the 2001 quarter and $3.55 million in the 2001 nine months. (b) Includes a net loss from discontinued operations of $381,000 in the 2000 quarter and $1.1 million in the 2000 nine months. (c) Based on average shares outstanding of 13.1 million in the 2001 periods, 13.6 million in the 2000 quarter and 13.8 million in the 2000 nine months. | |||
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