Hooker 3Q sales jump 12.6%
By Janice Chamberlain -- Furniture Today, October 13, 2004
Martinsville, Va. — Furniture maker and importer Hooker Furniture said sales rose 12.8% to $84.3 million in its third quarter ended Aug. 31, the company's 11th consecutive quarter of sales increases.
Net income, however, fell 9.2% to $3.2 million, hobbled by a $2 million pretax charge for restructuring and asset impairment, mainly from the closing of its Maiden, N.C., wood furniture factory, scheduled for later this month.
For the nine months, Hooker reported sales of $254 million, up 10.8% over sales of $229.3 million for the comparable 2003 period. Nine-month profits jumped 14.8% to $12.8 million from $11.1 million last year.
The 2004 nine months included the $2 million charge, and the 2003 nine months included a similar $1.5 million pretax charge for the closure of the Kernersville, N.C., plant.
Hooker Chairman and CEO Paul Toms Jr. said, "We're pleased with our strong sales and operational performance this quarter, especially with the 32% increase in shipments from leather upholstery specialist Bradington-Young."
Bradington-Young, acquired by Hooker last year, accounted for $13.9 million in sales in the latest quarter, a 32.1% increase over the same period a year ago.
"We are now hitting our stride at Bradington-Young," said Toms. "We have successfully ramped up production to match the increase in incoming orders we've experience over the last few quarters. We also believe Bradington-Young has gained market share as we have increased the number of sales representatives carrying the line."
Hooker said sales of imported wood furniture increased 24.5% to $45.9 million in the latest quarter from $36.9 million a year ago.
Toms said competitive pressures resulted in declining sales of domestically produced wood furniture, prompting the closing of the Maiden plant. "After we close the Maiden plant and increase work schedules at our three remaining wood furniture plants, we expect to see profit margins improve for domestically produced wood furniture," he said.
In the nine months, imported wood furniture shipments increased 20.8% to $133.1 million, compared with $110.1 million in the comparable 2003 period. Shipments from Bradington-Young accounted for $41.4 million in sales in the 2004 nine months, measured against $31.5 million in the eight months following its acquisition at the beginning of January 2003.
Hooker's domestically produced wood shipments during the 2004 nine months were $79.5 million, off 9.3% from the 2003 period.
Hooking is forecasting a 10% to 15% sales increase in the fourth quarter, compared with the comparable 2003 quarter. The company has declared a dividend of 6 cents per share, payable on Nov. 30 to shareholders of record Nov. 15.
| Hooker Furniture | |||
|---|---|---|---|
| Owns Bradington-Young | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 8/31 | 2004 | 2003 | Change |
| (a) Includes a $2 million pretax restructuring and asset impairment charge in both periods. (b) Includes a $1.5 million pretax restructuring and asset impairment charge. |
|||
| Sales | $84,309,000 | $74,749,000 | 12.8% |
| Operating income | 7,336,000 | 6,282,000 | 16.8% |
| Net income | (a)3,203,000 | 3,528,000 | (9.2%) |
| Earnings per share | 0.27 | 0.31 | (12.9%) |
| 9 months ended 8/31 | 2004 | 2003 | Change |
| Sales | $254,021,000 | $229,339,000 | 10.8% |
| Operating income | 23,501,000 | 21,024,000 | 11.8% |
| Net income | (a)12,757,000 | (b)11,114,000 | 14.8% |
| Earnings per share | 1.09 | 0.97 | 12.4% |
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Hooker 3Q sales jump 12.6%
Oct 14, 2004
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