Jennifer earnings jump in 2Q
By Clint Engel -- Furniture Today, April 30, 2007
Woodbury, N.Y. — Jennifer Convertibles reported fiscal second-quarter net income of $1.26 million, more than double the $554,000 earned in the same period a year ago.
The company said the improvement shows that new merchandising and advertising strategies and adjustments to margins are working, despite tough business conditions.
Revenue from continuing operations for the quarter ended Feb. 24 increased 1.6% from the same period a year earlier, to $33.4 million.
Net income for the first half decreased to $621,000 from $1.4 million for the same period a year ago, while revenue from continuing operations decreased 3.6% to $66.2 million.
Harley Greenfield, CEO of the 187-store Woodbury, N.Y.-based sofa-sleeper and leather upholstery specialty chain, said he was pleased to report "the strategies which we utilized in merchandising and advertising and our adjustment to margins returned the company to profitability during our second fiscal quarter.
"This was accomplished despite softness generally in the furniture industry, which continues to impact our operations. We expect profitability to continue," he said.
Jennifer closed four stores in the second quarter. It will open its first of three Ashley Furniture HomeStores planned for metro New York at the end of May. "The Ashley stores added to our solid Jennifer base will propel the company to a new level," said Greenfield.
Jennifer has 171 Jennifer Convertibles and 16 Jennifer Leather stores, with 162 company-owned and 25 licensed.
| Jennifer Convertibles | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 2/24 | 2007 | 2006 | Change |
| (a) Includes a net loss from discontinued operations of $32,000 in the 2006 quarter and net earnings from discontinued operations of $102,000 in the 2006 six months. (b) Based on average shares outstanding of 8.7 million in the 2007 quarter, 8.3 million in the 2006 quarter, 8.9 million in the 2007 six months and 7.8 million in the 2006 six months. | |||
| Revenues | $33,471,000 | $32,932,000 | 1.6% |
| Operating income | 1,260,000 | 751,000 | 67.8% |
| Net income (a) | 1,258,000 | 554,000 | 127.1% |
| Earnings per share (b) | 0.14 | 0.07 | 100.0% |
| 6 months ended 2/24 | 2007 | 2006 | Change |
| Revenues | $66,170,000 | $68,674,000 | (3.6%) |
| Operating income | 727,000 | 1,629,000 | (55.4%) |
| Net income (a) | 621,000 | 1,401,000 | (55.7%) |
| Earnings per share (b) | 0.07 | 0.18 | (61.1%) |
