Chromcraft sales fall; loss cut
By Heath E. Combs -- Furniture Today, November 26, 2007
West Lafayette, Ind. — Manufacturer and importer Chromcraft Revington reported a third quarter net loss of $2.1 million as sales declined 19.6% from a year earlier to $28.4 million.
The loss stemmed mainly from lower sales volume, an unfavorable product mix, price discounting and a $700,000 non-cash charge for inventory writedowns, the company said.
Last year, the company reported $35.3 million in sales during the same quarter and a loss of $4.5 million.
Sales in the nine months ended Sept. 29 were $95 million, down 21.8%. The net loss was $6.6 million, compared with a loss of $2.7 million in the comparable 2006 period.
Company officials said a weak retail environment, competitive pressure from imports and the impact of its corporate restructuring caused sales to decline. Commercial furniture sales were higher for the quarter and the year due to an increase in seating product shipments.
"While the retail market continues to be very difficult, it is important for the company to work through its transition in order to position it for the future," said Chairman and CEO Ben Anderson-Ray.
Despite the loss, the company said it had cash of $7.7 million at the end of the quarter and no bank debt.
Meanwhile, because of its loss this year, it expects to be able to apply for a refund on its 2006 and 2005 income taxes, when it paid refundable taxes of $4.3 million. It expects to record most of the refunds in 2008.
The company said it is continuing to reduce its reliance on U.S. manufacturing by shifting more of its existing and new furniture products to offshore production.
Chromcraft Revington sells residential furniture under the CR Home banner, under the Chromcraft, Peters-Revington, Silver, Cochrane and Sumter Cabinet brands.
| 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 9/29 | 2007 | 2006 | Change |
| (a) Includes income tax benefits of $1.3 million in the 2007 quarter, $1.9 million in the 2006 quarter, $4 million in the 2007 nine months and $797,000 in the 2006 nine months. | |||
| Sales | $28,412,000 | $35,348,000 | (19.6%) |
| Operating income | (3,377,000) | (6,335,000) | |
| Net income (a) | (2,081,000) | (4,457,000) | |
| Earnings per share | (0.46) | (1.01) | |
| 9 months ended 9/29 | 2007 | 2006 | Change |
| Sales | $95,028,000 | $121,589,000 | (21.8%) |
| Operating income | (10,630,000) | (3,256,000) | |
| Net income (a) | (6,560,000) | (2,652,000) | |
| Earnings per share | (1.46) | (0.60) | |
Chromcraft Revington trims loss in quarter
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