The Rowe Companies Announces Second Quarter Financial Results

Furniture World News

The Rowe Companies (NYSE: ROW), a leading furniture manufacturer and retailer, reported operating results for the second quarter ended May 28, 2000. Net shipments for the second quarter of fiscal year 2000 amounted to $87.7 million, compared to $63.9 million for the same period last year. Second quarter earnings were $1.2 million, or $0.09 per diluted share, compared to $3.0 million, or $0.21 per diluted share for the same period a year ago. For the first six months, net shipments amounted to $175.2 million, compared with $123.9 million in the corresponding year-ago period. Net income for the six months amounted to $3.6 million, or $0.26 per diluted share, compared with $6.1 million, or $0.43 per diluted share a year ago. Shipments and earnings for the same period a year ago do not include results from Storehouse, Inc., which was acquired August 1, 1999. Operating results for the second quarter and year to date have been negatively impacted in a less favorable business environment by additional costs associated with the start-up of the new upholstery production facility in Elliston, Virginia, increases in expenses including increases in health and medical costs and higher borrowing costs associated with recent increases in LIBOR. Gerald M. Birnbach, Chairman and Chief Executive Officer recently commented, "We understand the issues that are affecting the Company's earnings and are extremely focused on bringing these items to a positive resolution." The Rowe Companies is comprised of Rowe Furniture, Inc. a major manufacturer of quality upholstered furniture; The Mitchell Gold Co., a fast- growing, upholstered furniture manufacturer serving some of the nation's leading specialty retailers; The Wexford Collection, Inc. a manufacturer of casual wood furniture; Storehouse, Inc., a 42-store retail furniture chain; and Home Elements, a 16-store specialty retail furniture group. A conference call will be held to discuss the second quarter results at 10:00 a.m. on June 14th. To obtain call-in information, please contact Debbie Jacks at 703-847-8670. Statements in this press release concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items; together with other statements that are not historical facts, are "forward-looking statements" as that term is defined under Federal Securities Laws. "Forward-looking statements" are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those stated in such statements. Such risks uncertainties and factors include, but are not limited to, industry cyclicality, fluctuations in customer demand and order patterns, the seasonal nature of the business, changes in pricing, and general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission.