Chromcraft 4Q earnings up 35%
By Furniture Today Staff -- Furniture Today, February 10, 2003
Delphi, Ind. — Cost controls, improved operating efficiencies and a better product mix helped Chromcraft Revington to a 35% earnings gain in the fourth quarter despite softer sales, the Top 25 furniture manufacturer said.
Sales of $49 million were down 8.8% from the comparable quarter a year earlier because of a weaker economic environment and increased competition, said Michael Thomas, chairman and chief executive officer.
Strong gains at the company's Chromcraft and Peters-Revington subsidiaries led the earnings improvement, he said. Shipments of occasional, dining, upholstered and commercial furniture were lower in the quarter, while bedroom furniture sales rose because of Peters-Revington's entry into the category.
For the full year, all product categories were down. Sales of $214.2 million were off 6.3% from 2001.
Earnings before the effect of an accounting adjustment increased 1.8% for the year to $10.7 million. After the writedown of goodwill — a non-cash charge of $26.7 million after taxes — the company posted a loss of $16 million in 2002.
Excess cash flow in the fourth quarter allowed Chromcraft Revington to pay down debt by $12 million, Thomas said.
Looking ahead, he said orders continue to run behind year-ago levels, but diluted earnings per share in the current quarter are expected to be higher — 55 to 60 cents, compared with 38 cents a year ago.
For the full year 2003, earnings are expected to be $2.25 to $2.35 per share compared with 2002's $2.04, before the accounting adjustment.
| 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 | 2002 | 2001 | Change |
| (a) Based on average shares outstanding of 4.2 million in the 2002 quarter, 5.3 million in the 2002 year and 9.7 million in the 2001 periods. (b) Includes a $26.7 million extraordinary charge, the cumulative effect of an accounting change. | |||
| Sales | $49,036,000 | $53,759,000 | (8.8%) |
| Operating income | 5,422,000 | 3,714,000 | 46.0% |
| Net income | 3,012,000 | 2,231,000 | 35.0% |
| Earnings per share (a) | 0.72 | 0.23 | 213.0% |
| Year ended 12/31 | 2002 | 2001 | Change |
| Sales | $214,186,000 | $228,492,000 | (6.3%) |
| Operating income | 19,077,000 | 17,971,000 | 6.2% |
| Net income | (b)(15,989,000) | 10,543,000 | — |
| Earnings per share (a) | (3.09) | 1.09 | — |
