Chromcraft reports loss of $8M in fourth quarter
By Larry Thomas -- Furniture Today, April 25, 2009
West Lafayette, Ind. — Chromcraft Revington, which markets furniture under the Chromcraft, Peters-Revington and Cochrane brand names, reported a fourth-quarter net loss of $8 million as sales fell 19.3%.
The company said sales fell in all product categories as it felt the full effect of the recession and the weak retail environment.
In addition, the company said it was hurt by competitive pressures, several unsuccessful product introductions, and the transition to a business model that is more heavily dependent on imports.
Fourth quarter sales totaled $22.9 million, down from $28.3 million in the last quarter of 2007.
The fourth-quarter loss, which equals $1.75 per share, included asset impairment and restructuring charges of $330,000.
In the fourth quarter of 2007, Chromcraft Revington had a net loss of $6.8 million or $1.51 per share.
For all of 2008, the company's net loss totaled $26.5 million or $5.79 per share. That figure included $9 million in restructuring charges primarily related to the closing of two factories, consolidation of warehousing facilities and severance costs from a management reorganization.
In 2007, the company had a loss of $13.4 million or $2.97 per share.
Last year's sales totaled $99 million, down 19.7% from $123.4 million in 2007.
"The company has taken more aggressive steps to reduce overhead expense, make more efficient use of its facilities, improve the return on assets, and conserve cash," said Ronald Butler, chairman and CEO.
Butler said the company paid off its bank loans in the fourth quarter and ended the year with $879,000 in cash. By the end of the first quarter, the cash position had improved to $5 million and the company had no borrowings under its revolving credit agreement.
"Like everyone, we look forward to better economic times, but are not counting on the lift of an improved economy to sustain our business," said Butler.
Chromcraft Revington
Owns Chromcraft, Peters-Revington, Cochrane, Silver and Sumter Cabinet
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| Quarter ended 12/31 | 2008 | 2007 | Change |
| (a) Information for 2007 has been adjusted to reflect a change in inventory accounting. |
|||
| Sales | $22,875,000 | $28,345,000 | (19.3%) |
| Operating income | (7,907,000) | (4,706,000) | — |
| Net income (a) | (8,011,000) | (6,825,000) | — |
| Earnings per share | (1.75) | (1.51) | — |
| Year ended 12/31 | 2008 | 2007 | Change |
| Sales | $99,014,000 | $123,373,000 | (19.7%) |
| Operating income | (25,852,000) | (15,336,000) | — |
| Net income (a) | (26,461,000) | (13,385,000) | — |
| Earnings per share | (5.79) | (2.97) | — |
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