Stanley Furniture reports flat sales, larger loss in quarter
October 15, 2013,
HIGH POINT — Stanley Furniture said third-quarter sales were essentially even with last year's third quarter, but the case goods producer's net loss increased to $2.47 million.
The loss, which equals 17 cents per share, compares with a net loss of $1.9 million, or 13 cents per share, in the same quarter last year.
"Our business showed important signs of improvement during the third quarter," said Glenn Prillaman, president and CEO. "After three consecutive years of strategic change necessary to position both our Stanley and Young America brands for growth, sales have stabilized, both year-over-year and sequentially, and our cash used during the quarter declined compared to prior quarters, as guidance suggested.
"Our balance sheet remains strong and our plan to become profitable does not hinge upon further capital spending," he added.
He said gross margins improved on the Stanley brand, which is produced offshore, and said the Robbinsville, N.C., factory that produces the Young America youth furniture brand is now operating on schedule after experiencing some delays due to the launch of a new operating system.
"In the most recent quarter, our customers, as well as our associates and sales team, noticed the improvements in our sourcing, manufacturing and information systems efforts, all of which we believe position the company and its brands for growth opportunities," said Prillaman. "Our team remains focused on top-line growth and is ready for this week's fall furniture market in High Point where we believe the industry's retailers and interior designers will again be excited to see our new product and programs."
For the first nine months of 2013, sales totaled $74.2 million, down 1.3% from $75.2 million in the first nine months of 2012.
The nine-month net loss totaled $8.09 million or 57 cents per share. That compares with net income of $33.4 million or $2.30 per share in the first nine months of last year - a period that included $39.4 million in antidumping duties.
"We are optimistic about our ability to grow both sequentially and year-over-year in the coming quarter with each of our two brands now positioned for differentiation in the marketplace," Prillaman said. "While it is difficult to accurately predict incoming order rates in the current environment, we continue to receive encouraging feedback from customers as they see new product and experience much improved delivery of orders and information surrounding the sale of existing products."