Chromcraft posts $4.5M loss
By Larry Thomas -- Furniture Today, November 13, 2006
West Lafayette, Ind. — Hampered by a double-digit decline in sales and a variety of restructuring charges, case goods and occasional resource Chromcraft Revington reported a third-quarter net loss of $4.5 million.
The company said competitive pressures and a weak retail furniture environment caused sales to fall 13.4% below last year's third quarter. Shipments of all furniture categories were down, but the company noted that occasional furniture sales were particularly weak.
Chromcraft Revington produces and imports furniture under the Chromcraft, Peters-Revington, Silver, Cochrane and Sumter brands.
Net sales for the quarter ended Sept. 30 totaled $35.3 million, compared with $40.8 million in the same period last year.
The most recent quarter's loss, which equals $1.01 per share, compares with net income of $1.2 million or 27 cents per share in last year's third quarter.
The most recent quarter includes after-tax restructuring and impairment charges of $3.49 million or 79 cents per share. In addition, the company recorded a non-cash charge of $325,000 or 8 cents per share for certain net operating loss carryforwards that can no longer be used.
Even without the one-time charges, the company would have had a net loss of $640,000 or 14 cents per share in the most recent quarter.
For the fourth quarter, the company said it expects to incur an operating loss, largely because of restructuring costs and other charges related to the planned Dec. 8 shutdown of its wood processing plant in Warrenton, N.C.
For the first nine months of 2006, the company's sales declined 5.7% to $121.6 million.
The company recorded a nine-month net loss of $2.7 million or 60 cents per share. In the first nine months of 2005, it had net income of $5.5 million or $1.28 per share.
| 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 9/30 | 2006 | 2005 | Change |
| (a) Both 2006 periods include a restructuring and impairment charge of $5.8 million before tax or $3.5 million after tax, mainly non-cash items, for plant closings and related costs. The 2006 periods also include a non-cash income tax charge of $325,000 because it is unlikely certain state operating loss carryforwards will be utilized. | |||
| Sales | $35,348,000 | $40,836,000 | (13.4%) |
| Operating income | (6,335,000) | 2,229,000 | — |
| Net income (a) | (4,457,000) | 1,191,000 | — |
| Earnings per share | (1.01) | 0.27 | — |
| 9 months ended 9/30 | 2006 | 2005 | Change |
| Sales | $121,589,000 | $128,896,000 | (5.7%) |
| Operating income | (3,256,000) | 9,439,000 | — |
| Net income (a) | (2,652,000) | 5,540,000 | — |
| Earnings per share | (0.60) | 1.28 | — |
