Hooker's earnings increase 12.8% in 2006
By Furniture Today Staff -- Furniture Today, February 18, 2007
Martinsville, Va. — Hooker Furniture said its sales edged up 2.4% in the fiscal year ended Nov. 30, while net income rose 12.8% due to a variety of cost controls and lower interest expenses.
The case goods and leather upholstery manufacturer and importer said sales for the year totaled $350 million, up from $341.8 million in the previous year. Net income was $14.1 million or $1.18 per share, compared with $12.5 million or $1.06 per share, the year before.
Net income increased despite $6.9 million in one-time restructuring and asset impairment charges. Over half the charges are related to the upcoming shutdown of its last domestic case goods factory in Martinsville. The remainder stemmed from the July 2006 closing of its Roanoke, Va., factory.
"It was a year of positive momentum ... as we performed better operationally, achieved record annual net sales and made significant progress toward our long-term strategic goal of transforming into a home furnishings design, marketing and logistics company with worldwide sourcing capabilities," said Chairman, President and CEO Paul Toms Jr.
In the fourth quarter, sales inched up 0.9% to $91 million and net income fell 13.3% to $3.5 million or 29 cents per share. The quarter included $3.7 million in restructuring and asset impairment charges stemming from the Martinsville factory closing.
"We made good headway in bringing down our inventory item count and finished goods levels during the fourth quarter," Toms said. "While we struggled with increased warehousing and distribution costs during 2006, we believe there is good potential to reduce those costs further as we refine our supply chain management and logistics."
Hooker recently changed its fiscal year so that it will end in late January instead of late November. The new fiscal calendar began Jan. 29 and will end Feb. 3, 2008.
Toms said an earnings report covering the two-month transition period between the old and new fiscal years will be issued in early March.
| Hooker Furniture | |||
|---|---|---|---|
| Owns Bradington-Young | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 11/30 | 2006 | 2005 | Change |
| (a) Includes pretax restructuring and asset impairment charges of $3.7 million in the 2006 quarter, $211,000 in the 2005 quarter, $6.9 million in the 2006 year and $5.3 million in the 2005 year. (b) Based on average shares outstanding of 12 million in the 2006 quarter and year and 11.8 million in the 2005 quarter and year. |
|||
| Sales | $90,987,000 | $90,153,000 | 0.9% |
| Operating income | 9,350,000 | 6,786,000 | 37.8% |
| Net income (a) | 3,477,000 | 4,012,000 | (13.3%) |
| Earnings per share (b) | 0.29 | 0.34 | (14.7%) |
| Year ended 11/30 | 2006 | 2005 | Change |
| Sales | $350,026,000 | $341,775,000 | 2.4% |
| Operating income | 29,665,000 | 26,405,000 | 12.3% |
| Net income (a) | 14,079,000 | 12,485,000 | 12.8% |
| Earnings per share (b) | 1.18 | 1.06 | 11.3% |
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