Hooker reports loss in 4Q but $6.9M profit for year
By Larry Thomas -- Furniture Today, April 13, 2009
MARTINSVILLE, Va. — Hooker Furniture reported a net loss of $719,000 in its fourth fiscal quarter but managed a profit of $6.91 million for the full year.
The red ink for the quarter ended Feb. 1 was largely due to $4.9 million in non-cash asset impairment charges.
The company said sales for the 13-week fourth quarter totaled $56.5 million, a 31.3% decline from the 14-week quarter ended Feb. 3, 2008. The extra week in 2008 accounted for a little less than 8% of sales.
“The fourth quarter was especially difficult with steepening year-over-year declines in sales and orders,” said Paul Toms Jr., chairman and CEO. “Those declines impacted capacity utilization and profitability at our domestic upholstery manufacturing facilities.”
He said the write-offs involved goodwill related to Hooker's acquisitions of Bradington-Young and Opus Designs, as well as a write-down in the value of the Bradington-Young trademark.
The most recent quarter's loss, which equals 7 cents per share, compares with net income of $4.6 million or 39 cents per share in the 2008 quarter.
The full-year profit, which equals 62 cents per share, was a decline of nearly 65% from net income of $19.7 million or $1.58 per share in the previous fiscal year.
Sales for the most recent 52-week fiscal year totaled $261.2 million. That was down 17.6% from $316.8 million in the previous 53-week fiscal year.
“While our inability to stabilize sales and maintain historical profitability levels has been frustrating in the short-term, we remain confident in the ability or our business model to keep us competitive, well-positioned and profitable in the long term,” Toms said.
He said he believes business conditions will remain challenging for the next one to two quarters, but said he is encouraged by the recent uptick in housing activity and stock market gains.
Hooker Furniture
Owns Bradington-Young and Sam Moore
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| 13 weeks ended 2/1 | 2009 | 2008 | Change |
| (a) Includes intangible asset impairment charge of $4.9 million in the 2009 quarter and year; restructuring and asset impairment credits of $132,000 in the 2009 quarter, $454,000 in the 2008 quarter and $951,000 in the 2009 year; and a restructuring and asset impairment charge of $309,000 in the 2008 year. (b) Based on average shares outstanding of 10.8 million in the 2009 quarter, 11.8 million in the 2008 quarter, 11.1 million in the 2009 year and 12.4 million in the 2008 year. |
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| Sales | $56,511,000 | $82,298,000 | (31.3%) |
| Operating income | 3,344,000 | 6,676,000 | (49.9%) |
| Net income (a) | (719,000) | 4,600,000 | — |
| Earnings per share (b) | (0.07) | 0.39 | — |
| 52 weeks ended 2/1 | 2009 | 2008 | Change |
| Sales | $261,162,000 | $316,801,000 | (17.6%) |
| Operating income | 14,304,000 | 30,006,000 | (52.3%) |
| Net income (a) | 6,910,000 | 19,655,000 | (64.8%) |
| Earnings per share (ba) | 0.62 | 1.58 | (60.8%) |
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