Hooker posts small profit
By Larry Thomas -- Furniture Today, December 14, 2009
MARTINSVILLE, Va. — Hooker Furniture said sales in its fiscal third quarter were 23.8% below the same quarter last year, but the case goods and upholstery major recorded a small profit after two consecutive quarterly losses.
The company said a recent uptick in orders, coupled with a variety of cost-cutting measures and inventory reductions resulted in strong cash flow and an improved bottom line.
“While encouraged by improvements, we remain keenly focused on increasing sales, controlling costs and positioning ourselves for improved profitability,” said Paul Toms, chairman and CEO. “With our return to profitability and a 14% increase in sales this quarter compared to the second quarter, we are moving in the right direction and beginning to achieve some momentum we can build on.”
Toms added that in October, the company had its highest incoming order rate since August 2008. The uptick has been particularly strong in its Bradington-Young and Sam Moore upholstery units, he said.
Sales for the quarter ended Nov. 1 totaled $52.6 million, down from $69 million in last year’s third fiscal quarter.
Net income was $957,000 or 9 cents per share, compared with $3 million or 27 cents per share in the same period last year.
Toms said inventories declined 19% during the quarter and have been slashed 44% since the beginning of the fiscal year. That has enabled the company to maintain a strong cash position and eliminate long-term debt.
“Our strong balance sheet continues to serve us well as we have navigated the severe economic downturn,” he said. “We are leveraging our financial strength to invest in systems, people, inventory and expansion of our product lines.”
Toms said he believes the worst of the downturn is over, but “there is still a headwind in the recovery. Until we see people feeling more secure in their jobs and an improvement in employment, we will continue to see downward pressure on discretionary spending for large ticket items like furniture.”
Sales for the nine months ended Nov. 1 totaled $150.6 million, down 26.4% from $204.7 million in the same period a year earlier.
Nine-month net income was $38,000 or less than 1 cent per share. That compares with $7.6 million or 68 cents per share in the same period the previous year.
Hooker Furniture
Owns Bradington-Young
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| 13 weeks ended 11/1 | 2009 | 2008 | Change |
| (a) Includes restructuring and asset impairment credit of $561,000 in the 2008 quarter and $819,000 in the 2008 nine months, and a restructuring and asset impairment charge of $613,000 in the 2009 nine months. |
|||
| Sales | $52,605,000 | $68,996,000 | (23.8%) |
| Operating income | 1,783,000 | 4,147,000 | (57.0%) |
| Net income (a) | 957,000 | 2,950,000 | (67.6%) |
| Earnings per share | 0.09 | 0.27 | (66.7%) |
| 39 weeks ended 11/1 | 2009 | 2008 | Change |
| Sales | $150,646,000 | $204,651,000 | (26.4%) |
| Operating income | 1,270,000 | 10,960,000 | (88.4%) |
| Net income (a) | 38,000 | 7,629,000 | (99.5%) |
| Earnings per share | 0.00 | 0.68 | (100.0%) |
-
Hooker posts 28.9% drop in second-quarter earnings
Sep 21, 2009 -
Hooker Furniture profits decline 68%
Dec 9, 2009 -
La-Z-Boy reports $5.9M profit
Nov 30, 2009 -
Hooker Furniture’s 1Q sales drop 26.7%
Jun 15, 2009 -
Hooker reports loss in 4Q but $6.9M profit for year
Apr 13, 2009
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