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Stanley 2Q sales slip 1.1%

Heath E. Combs, Larry Thomas -- Furniture Today, July 26, 2013

HIGH POINT - Case goods resource Stanley Furniture said its second-quarter sales slipped 1.1% as the company essentially completed a multiyear restructuring effort.

     The net loss for the quarter ended June 29 came to $3.53 million or 25 cents per share, including about $262,000 in one-time costs for the relocation of its corporate headquarters from Stanley town, Va., to High Point.
     Glenn Prillaman, president and CEO, said the quarter marked the end of a restructuring that he acknowledged was "very disruptive to our customers and management team," but will propel the company to long-term profitable growth.
     "As we begin the second half of the year, we have now either completed or are simply refining the multiple initiatives that we believe have been necessary for long term growth...." Prillaman said. "With these distractions behind us, we are now completely focused on the execution of our operating models which should make us one of the most customer-friendly companies within our segment of the marketplace."
     He said products introduced at the High Point Market in April were very well received, and the company is poised to gain retail floor space.
     "(W)e enter the second half of the year in a strong position on new product, inventory levels and plant performance," said Prillaman, noting that a new enterprise resource planning system will give the company a competitive advantage.
     Sales for the quarter totaled $24.2 million, down from $24.4 million in last year's second quarter.
     The most recent quarter's net loss compared with net income of $36.9 million or $2.54 per share, in the same quarter last year - a period that included a cash infusion of $39.9 million in antidumping duties.
     Gross margins declined to 9% from 14.5%, largely due to discounting the existing product line to make room for the April introductions, the company said.
     For the six months ended June 29, sales totaled $50.2 million, down from $51.2 million in the first half of 2012.
     The six-month net loss totaled $5.62 million, or 40 cents per share. Including the antidumping money, the company had net income of $35.3 million or $2.44 per share in the first half of last year.

Stanley Furniture

Earnings per share are fully diluted, and all figures in parentheses are losses or declines.

Quarter ended 6/29

2013
2012

Change

Sales

$24,166,000

$24,428,000

(1.1%)

Operating income

(2,928,000)

(1,406,000)

-

Net income (a)

(3,529,000)

36,860,000

-

Earnings per share

(0.25)

2.54

-

 6 months ended 6/29

2013

2012

Change

 Sales

$50,218,000

$51,209,000

(1.9%)

Operating income

(4,400,000)

(2,390,000)

-

Net income (a)

(5,623,000)

35,297,000

-

Earnings per share

(0.40)

2.44

-

(a) Includes $39.4 million in antidumping duties in 2012.

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