O'Sullivan sales off 6.4%, loss rises
Larry Thomas -- Furniture Today, May 8, 2005
Roswell, Ga. — O'Sullivan Inds., a major ready-to-assemble furniture maker, said sales dropped 6.4% and the net loss nearly doubled in its third quarter ended March 31.
The company also reported a negative cash flow of $4 million in the latest quarter, but said cash flow was a positive $1.8 million for the first nine months, noting it had no outstanding balance on its revolving credit line at quarter's end.
"These results are in line with our expectations as we continue to reorganize O'Sullivan and solidify our infrastructure," said President and CEO Bob Parker. "While we would like to see increased sales and profits earlier, we are on track with our plan to turn O'Sullivan around and begin to deliver increases in fiscal 2006."
Sales in the most recent quarter totaled $68.5 million, down from $73.2 million in last year's third quarter.
The net loss, after dividends and accretion on preferred stock, came to $16.5 million. That compares with a loss of $8.5 million (including preferred stock dividends and accretion) in the same period a year ago.
Third-quarter results included a pair of one-time charges against income. One was a $3.6 million writedown in the value of raw material and work-in-progress inventory, and the other was a $1.5 million charge stemming from the closing of O'Sullivan's operations in Australia.
For the first nine months, sales dropped 6% to $197.4 million. The net loss, including preferred stock dividends and accretion, totaled $46.4 million.
Rick Walters, executive vice president and chief financial officer, said the company "took great strides in reducing the amount of finished goods inventory required to run our business. These actions, along with closing down our Australian operations, are further steps in executing the strategic plan that is focused on generating profitable growth in the years ahead."
| O'Sullivan Inds. | |||
|---|---|---|---|
| All figures in parentheses are losses or declines. | |||
| Quarter ended 3/31 | 2005 | 2004 | Change |
| (a) After preferred dividends and accretion of $3.3 million in the 2005 quarter and $12.5 million in the 2005 nine months; includes $357,000 in pretax restructuring charges in both periods. (b) After preferred dividends and accretion of $3.2 million in the 2004 quarter and $9.2 million in the 2004 nine months. The 2004 quarter also includes a $250,000 pretax casualty loss. |
|||
| Sales | $68,543,000 | $73,239,000 | (6.4%) |
| Operating income | (3,805,000) | 3,299,000 | — |
| Net income | (a)(16,484,000) | (b)(8,548,000) | — |
| 9 months ended 3/31 | 2005 | 2004 | Change |
| Sales | $197,409,000 | $209,937,000 | (6.0%) |
| Operating income | (6,724,000) | 10,123,000 | — |
| Net income | (a)(46,411,000) | (b)(27,245,000) | — |
-
O'Sullivan posts loss despite sales gain
Feb 13, 2005 -
O'Sullivan 2Q sales drop 17.5%
Feb 22, 2004 -
O'Sullivan sales tumble 15.7% in fiscal third qtr.
May 23, 2004 -
O'Sullivan sales drop 17.6%; net loss cut
Aug 10, 2003 -
O'Sullivan 3Q net sales down 6.4%
May 5, 2005
Featured Company
-
Wright Labels
Bill and Tom Wright founded Wright of Thomasville in 1961 on the idea that printing was a creative medium and the belief that "a promise made is a promise kept." The Wright brothers focused their attention on providing exceptional printing for the... more
VIEW ALL GALLERIES
