Chromcraft Revington profits drop
By Furniture Today Staff -- Furniture Today, February 16, 2004
DELPHI, Ind. — Chromcraft Revington's fourth-quarter profits tumbled 43.9% from the same period a year earlier, but exceeded the company's previous earnings guidance.
The diversified manufacturer and importer said it earned $1.7 million or 41 cents per share in the quarter, below 72 cents a year ago but topping its guidance of 20 to 30 cents per share.
Sales were down 6.8% in the fourth quarter to $45.7 million, and fell 14% for the full year to $184.2 million. Michael Thomas, chairman, president and CEO, attributed the decline mainly to lower shipments of residential furniture — particularly in bedroom — as a result of import competition.
Chromcraft Revington, parent of Chromcraft, Peters-Revington, Silver Furniture, Cochrane Furniture and Sumter Cabinet, said it has increased its use of imported components and continues to pursue a strategy of domestic manufacturing and selective importing.
For the year, earnings of $8.1 million were down 24.7% from the $10.7 million posted a year earlier, before the effect of an accounting rule change. Including the change, the company booked a net loss of $16 million in 2002.
The 2003 earnings also included some one-time items — a pretax charge of $950,000 to write down the value of slow-moving bedroom furniture, an additional $515,000 in income tax expense because of a change in the estimate of the tax basis of acquired assets, and a $3.6 million pretax gain from the resolution of a claim arising from an acquisition.
Thomas said the company used excess cash flow from operations in the fourth quarter to pay down bank debt by $11.2 million. Long-term bank debt stood at $7 million at the end of 2003, down from $23 million a year earlier.
| Chromcraft Revington | |||
|---|---|---|---|
| Owns Chromcraft, Peters-Revington, Cochrane, Silver and Sumter Cabinet | |||
| Earnings per share are fully diluted, and all figures in parentheses are loses or declines. | |||
| Quarter ended 12/31 | 2003 | 2002 | Change |
| (a) Based on average shares outstanding of 4.1 million in the 2003 quarter, 4.2 million in the 2002 quarter, 4.2 million in the 2003 year and 5.3 million in the 2002 year. (b) Includes a $3.6 million pretax credit for the resolution of a claim related to the acquisition of a subsidiary. (c) Includes a $26.7 million extraordinary charge, the cumulative effect of an accounting change. | |||
| Sales | $45,680,000 | $49,036,000 | (6.8%) |
| Operating income | 2,968,000 | 5,422,000 | (45.3%) |
| Net income | 1,689,000 | 3,012,000 | (43.9%) |
| Earnings per share (a) | 0.41 | 0.72 | (43.1%) |
| Year ended 12/31 | 2003 | 2002 | Change |
| Sales | $184,228,000 | $214,186,000 | (14.0%) |
| Operating income | 11,373,000 | 19,077,000 | (40.4%) |
| Net income | (b)8,088,000 | (c)(15,989,000) | — |
| Earnings per share (a) | 1.94 | (3.09) | — |
