Stanley 4Q loss grows as sales decline 2.7%
Larry Thomas -- Furniture Today, February 15, 2014
High Point - Case goods manufacturer and importer Stanley Furniture said fourth-quarter sales slipped 2.7% and the company's net loss widened to $4.54 million.
The company said retail activity was weaker than expected, and results also were hampered by delays in shipping the newest product introductions from its Stanley line.
"Though our operational performance improved throughout the period, retail traffic slowed as the quarter progressed," said Glenn Prillaman, president and CEO, who said the company would have shown year-over-year sales growth if not for the shipping delays.
Sales for the quarter ended Dec. 31 totaled $22.7 million, down from $23.4 million in the fourth quarter of 2012.
The net loss came to $4.54 million or 32 cents per share. In the fourth quarter of 2012, the loss totaled $3.01 million or 21 cents per share.
Results were similar for the 2013 calendar year, with sales falling 1.6% to $96.9 million. The company said higher sales and unit volume in its Young America youth furniture line was offset by lower unit volume in the Stanley line.
The 2013 net loss totaled $12.6 million or 89 cents per share. In 2012, the company had net income of $30.4 million or $2.10 per share, but that included a one-time gain of $39.3 million from antidumping duties.
Prillaman said capital expenditures associated with the company's restructuring, which have included relocating its corporate office to High Point, constructing new showrooms at the High Point and Las Vegas markets, and the implementation of a new operating system, are largely completed.
As a result, he said the company will be more focused on product introductions and regaining lost market share in 2014.
"As order rates begin to grow, we are positioned to generate sales results quicker than we have in recent years," he said. "I expect the first half of this year to validate the hard work our team has put into positioning our company within our segment of the market and reward the loyalty many customers have shown us. Our shareholders, suppliers, customers and associates have waited patiently for our return to growth and profitability, and we look forward to progressing toward that end over the coming quarters."
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
Quarter ended 12/31
Earnings per share
Year ended 12/31
Net income (a)
Earnings per share
(a) 2012 includes income of $39.3 million from antidumping duties.
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