Stanley gets back into black
Jay McIntosh -- Furniture Today, February 13, 2012
Stanleytown, Va. — Stanley Furniture reported its first quarterly profit in three years with earnings of $1.2 million in the fourth quarter as officials cited improved operating performance.
The profit reversed a loss of $8.3 million in the 2010 fourth quarter. Sales of $24.6 million for the case goods manufacturer were down 11% .
The company said that excluding funds from the Continued Dumping and Subsidy Offset Act - also known as Byrd funds, collected from duties on imports of Chinese wood bedroom furniture before October 2007 - and a restructuring credit, Stanley would have posted a loss of $1.7 million in the fourth quarter. That compares with a $5.4 million loss excluding CDSOA funds and a restructuring charge in the same period a year earlier.
Stanley's improvement reflects the progress the company has made since a dramatic change in its production strategy in recent years. It ceased U.S. manufacturing of its Stanley Furniture adult case goods line in late 2010, going to an all-import model. It also has shifted its youth product line, Young America, to fully domestic production in Robbinsville, N.C.
"Last year was transformational for our company as we and our customers dealt with the challenges associated with product line and operational restructuring. We are very pleased with our improvements over the previous year as our financial results reflect the impact of our strategic decisions to align operations with customer demand for differentiated product," said Glenn Prillaman, president and CEO.
For the full year, 2011 sales of $104.6 million were down 23.6% from 2010.
The net loss for the year was $5 million, compared with a loss of $43.8 million or in 2010. Excluding the CDSOA income and restructuring charges, the company said the net loss improved to $8.6 million in 2011 from $23.6 million in 2010.
In a conference call with analysts, Prillaman said that based on internal progress in the company, Stanley should reach operational profitability and start generating cash sometime in the second half of this year.
Officials said the Stanley Furniture line became profitable late last year. In its Young America youth line, the focus this year will be on improving efficiency and reducing costs.
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
Quarter ended 12/31
Net income (a) (b)
Earnings per share
Year ended 12/31
Net income (c) (d)
Earnings per share
|NA-Not available. (a) Includes restructuring charge of $4.3 million in 2010. (b) Includes
income from Continued Dumping and Subsidy Offset Act of $2.9 million in 2011 and $1.4
million in 2010. (c) Includes goodwill impairment charge of $9.07 million in 2010. (d) Includes
income from Continued Dumping and Subsidy Offset Act of $3.97 million in 2011
and $1.56 million in 2010.|