Furniture maker Bestar posts C$160,000 loss

Third-quarter sales hold steady with last year

Larry Thomas -- Furniture Today, 11/13/2008 8:10:46 AM

LAC-MEGANTIC, Quebec — Ready-to-assemble furniture producer Bestar said third-quarter sales were essentially even with the same quarter last year, but the company swung to a net loss of C$160,000.

The company said increased interest expenses and the fluctuation of the Canadian dollar contributed to the loss.

Sales for the quarter ended Sept. 30 totaled C$10.6 million. The quarterly loss, which equals 1 cent per share, compares with a profit of C$17,000 a year ago. The third quarter 2007 figure represents income of less than 1 cent per share.

"Important efforts put forward to develop value-added products ... allowed us to maintain our revenue even though the economy is going through rough times," said Paulin Tardif, president and CEO.

Tardif said the company wasn't in compliance with some of its loan covenants at the end of the quarter, but said Bestar is taking steps to maintain the financial ratios required by its principal lender. Although the lender could demand accelerated repayment of the debt, it has not done so, he said.

For the nine months ended Sept. 30, sales decreased 5.6% to C$31.1 million. The nine-month net loss totaled C$540,000 or 4 cents per share. In the first nine months of 2007, the company recorded a profit of C$200,000, or 2 cents per share.