Chromcraft Revington posts larger loss as sales increase 2.5%
Larry Thomas -- Furniture Today, August 15, 2012
The company said the sales increase was due to an uptick in commercial furniture sales and its March acquisition of office furniture producer Executive Office Concepts.
Residential furniture shipments - particularly bedroom and occasional furniture - were lower than in last year's second quarter, the company reported.
"We continue to face the challenges resulting from weak consumer demand for residential furniture in our product categories and price segment, which we believe is consistent with industry trends," Chromcraft Revington said in a statement announcing financial results.
Net sales for the quarter ended June 30 were $14.2 million, up from $13.8 million in the same period last year.
The company's net loss, which equals 39 cents per share, compares with a loss of $1.25 million or 26 cents per share in last year's second quarter.
The company said the increased loss was due largely to the termination of its revolving credit facility with First Business Capital.
A new revolving credit facility with Gibraltar Business Capital was put in place. However, the company said its net loss for the first half of this year put it out of compliance with one of its financial covenants as of June 30.
Ronald Butler, Chromcraft Revington's chairman and CEO, said Gibraltar had agreed to waive the covenant for this period.
The six-month net loss totaled $2.72 million or 55 cents per share. That was down from $3.06 million or 64 cents per share in the first half of 2011.
Six-month sales totaled $28.1 million, an increase of 6.7% from $26.3 million in the first half of 2011.