Stanley Furniture cuts loss as sales rise 0.8% in first quarter
Larry Thomas -- Furniture Today, April 18, 2012
STANLEYTOWN, Va. — Case goods manufacturer and importer Stanley Furniture slashed its net loss to $1.56 million in the first quarter on a 0.8% increase in sales.
The loss, which equals 11 cents per share, was well below the net loss of $3.93 million or 27 cents per share in last year's first quarter.
Sales in the most recent quarter totaled $26.8 million, up from $26.6 million in the same quarter last year. It was the company's first quarter of year-over-year sales growth since 2006.
"The top-line growth and the further improvements to our cost structure support our strategic direction and confirm our team's ability to execute in both of our operating models. We have
made significant progress over the last five quarters and are closing in on profitability," said Glenn Prillaman, president and CEO.
"Our efforts to promote both brands during the first quarter were met with success and we continue to focus our efforts on regaining the confidence of our retail and interior design partners who continue to tell us our products are becoming a better value in the marketplace," he added.
He noted that Stanley's operating loss was cut to $984,000 from $3.4 million in last year's first quarter, and said gross margin improved to 13.4% from 6.4%.
He said the company continues to be debt-free and the balance sheet remains strong.
Since the first quarter ended March 31, the company has received $9.5 million in antidumping funds and expects to get an additional $30.5 million by the end of April.
The money, which was collected from importers of Chinese-made wood bedroom furniture, had been withheld due to legal action initiated by several companies that weren't part of the original petition filed in the early 2000s. The federal government is now releasing the money, and Stanley is one of the largest recipients.
"Despite the fact that we do not see the consumer confidence we would like driving more sales for upscale wood residential furniture, we are energized about the initiatives we have under way to continue to improve how we service our customers and expand our brands' reach in the marketplace," Prillaman said.
"The recently announced consolidation of our corporate offices into a newly remodeled, multipurpose facility in downtown High Point, our decision to attend our first Vegas market in January 2013, and our continuing to enhance the value of our product offerings all position the company for growth without a substantial increase of administrative expenses."