Chromcraft Revington 3Q sales decline 9.5%
By Furniture Today Staff -- Furniture Today, November 10, 2003
Delphi, Ind. — Manufacturer Chromcraft Revington said third-quarter sales declined 9.5% from a year ago to $45 million, although earnings rose because of a one-time gain.
Michael Thomas, chairman, president and chief executive officer, said the sales drop resulted from import competition and a weak economy. Sales of bedroom, dining room, occasional and commercial furniture were down, offset by slightly higher upholstery shipments.
Earnings of $2.6 million were up 17.5% from the same quarter last year. The company reported a one-time, non-cash gain before taxes of $3.7 million from resolution of a contingency from an earlier acquisition, which it didn't identify.
There also were one-time charges of $950,000 to write down inventory of slow-moving bedroom furniture, and $515,000 of additional income tax expense for a change in the estimated tax basis of acquired assets.
Excluding the one-time effects, operating earnings were lower as a percentage of sales, the company said.
Thomas said Chromcraft Revington is continuing to reduce costs and plans to take plant downtime in the current quarter to reduce inventories. He expects fourth-quarter sales to be flat to slightly up from the third quarter, and fourth-quarter earnings per share of 20 cents to 30 cents.
| Chromcraft Revington | |||
|---|---|---|---|
| Owns Chromcraft, Peters-Revington, Cochrane, Silver and Sumter Cabinet | |||
| Earnings per share are fully diluted, and all figures in parentheses are loses or declines. | |||
| Quarter ended 9/2720032002Change | |||
| (a) Includes a $3.6 million pretax credit in both periods, the result of a contingency that existed as part of the company's earlier acquisition of a subsidiary. (b) Includes a $26.7 million extraordinary charge, the cumulative effect of an accounting change. | |||
| Sales | $44,951,000 | $49,676,000 | (9.5%) |
| Operating income | 1,681,000 | 4,119,000 | (59.2%) |
| Net income | (a)2,619,000 | 2,228,000 | 17.5% |
| Earnings per share | 0.62 | 0.53 | 17.0% |
| 9 months ended 9/27 | 2003 | 2002 | Change |
| Sales | $138,548,000 | $165,150,000 | (16.1%) |
| Operating income | 8,405,000 | 13,655,000 | (38.4%) |
| Net income | (a)6,399,000 | (b)(19,001,000) | — |
| Earnings per share | 1.53 | (3.43) | — |
