Share this on

Sealy posts $2.6M profit

Reports first sales gain since 2007

By Larry Thomas -- Furniture Today, January 18, 2010

ARCHDALE, N.C. —

Aided by an uptick in its domestic business, bedding major Sealy recorded a profit in its fourth fiscal quarter as sales rose 1.9% — the first year-over-year increase in two years.

The company said it had net income of $2.6 million or 2 cents per share for the quarter ended Nov. 29. That reversed a net loss of $41.4 million or 45 cents per share in the fourth quarter of the previous year, a period that included one-time charges of more than $27 million.

Sales for the most recent quarter totaled $332.1 million, up from $325.8 million in last year's fourth quarter.

The company said wholesale domestic net sales, which exclude third-party sales from Sealy's components factories, jumped 7.3% to $227.7 million. Unit volume was up 7.9%, while the average unit selling price slid 0.6%.

“We are pleased with the results produced by our intense focus on the aspects of our business that we can control,” said Larry Rogers, president and CEO, noting that the sales figures represent the first year-over-year increase since the fourth quarter of 2007.

“Our successful rollout of the new Stearns & Foster line reinforced our commitment to developing innovative products and was an important driver in our profitable market share gains, and in strengthening our partnerships with our retailers and suppliers,” he added.

Gross margin for the quarter was 39.5%, some 3.3 percentage point higher than last year's fourth quarter. Rogers said he was especially pleased that gross margin on the company's domestic business was 41.5%, a jump of 3.7 percentage points.

For the fiscal year ended Nov. 29, sales totaled $1.29 billion, a decrease of 13.9% from the previous year's $1.5 billion.

Net income for the year was $13.5 million or 10 cents per share. In the previous year, the company had a net loss of $3.8 million or 4 cents per share.

Sealy
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.

(a) Includes loss for goodwill impairment of $1.2 million in the 2009 quarter and year and $27.5 million in the 2008 quarter and year; restructuring and asset impairment credit of $192,000 in the 2009 quarter; restructuring and asset impairment charges of $219,000 in the 2008 quarter, $1.3 million in the 2009 year and $3.1 million in the 2008 year; royalty income of $4.3 million in the 2009 quarter, $3.8 million in the 2008 quarter, $16.4 million in the 2009 year and $17.3 million in the 2008 year; a credit for refinancing of debt of $38,000 in the 2009 quarter and charges for refinancing of debt of $5.4 million in the 2008 quarter and year, and $17.4 million in the 2009 year; loss on rights for convertible notes of $4.6 million in the 2009 year; and gain on sale of subsidiary stock of $1.3 million in the 2009 year.
Quarter ended 11/29	2009	2008	Change
Sales	$332,060,000	$325,756,000	1.9%
Operating income	17,247,000	824,000	1993.1%
Net income (a)	2,574,000	(41,420,000)	—
Earnings per share	0.02	(0.45)	—
Year ended 11/29	2009	2008	Change
Sales	$1,290,064,000	$1,498,023,000	(13.9%)
Operating income	100,365,000	99,480,000	0.9%
Net income (a)	13,485,000	(3,803,000)	—
Earnings per share	0.10	(0.04)	—

Share this on

Sealy earns $2.6 million profit in fourth quarter

Jan 14, 2010

Sealy 2Q sales drop 20.5%

Jul 6, 2009

Also by this author

Also by Larry Thomas

Featured Company

Brandwise Inc.

Brandwise serves a model - not just an industry - by integrating, automating, and optimizing the entire sales channel, from wholesale Suppliers to their Reps and the Retailers they service. In short, our software helps Reps and Suppliers sell more and create... more

Related Resources

Atlanta International Gift & Home Furnishings Market

Here is a selection of products shown at this month's International Gift & Home Furnishings Market here.

Networking at the 13th annual F/T Leadership Conference

NAPLES, Fla. — Industry executives and guests took the opportunity to network and play golf during down time at Furniture/Today's 13th annual Leadership Conference here this month.