Bush posts 1Q net loss of $13.1M
By Furniture Today Staff -- Furniture Today, May 18, 2003
Jamestown, N.Y. — Sales continue to sag and losses continue to mount for ready-to-assemble furniture maker Bush Inds.
The company, parent of recently reorganized Bush Furniture North America, reported a first-quarter net loss of $13.1 million, including a $10.3 million charge for closing a Virginia plant and other cost-reduction initiatives.
Sales in the quarter were down 15.2% to $74.9 million. Long-term debt during the quarter increased by $11.6 million to $111.8 million. The increase was attributed to exchange rate changes, expenses related to the cost-reduction initiatives and funding of the first-quarter loss.
"Net sales in our North American furniture division were below expectations," said Paul Bush, chairman and chief executive officer.
Nonetheless, the company is committed to reducing costs and restructuring its product lineup to include a mix of assembled and RTA case goods, Bush said.
The company is dedicating its two furniture factories to specific product lines.
Production of Bush Business Furniture and the Eric Morgan line of assembled case goods will be handled by the Erie, Pa., plant, and the factory in Jamestown will make RTA products.
Looking ahead, the company expects second quarter sales to be down 5% to 10% from 2002, but losses should lessen as the company starts realizing the benefits of cost reductions.
| Bush Inds. | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are loses or declines. | |||
| 13 weeks ended 3/29 | 2003 | 2002 | Change |
| (a) Includes an $8 million pretax restructuring charge. (b) Includes a $745,000 income tax benefit and a $2.4 million extraordinary charge, the cumulative effect of an accounting change. |
|||
| Sales | $74,862,000 | $88,332,000 | (15.2%) |
| Operating income | (9,857,000) | 3,563,000 | — |
| Net income | (a)(13,136,000) | (1,305,000) | — |
| Earnings per share | (0.95) | (0.09) | — |
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