Chromcraft Revington, Inc. Reports Third Quarter Sales Decrease
Furniture World Magazine
Chromcraft Revington, Inc. reported sales of $40,836,000 and net earnings of $1,191,000 for the third quarter ended October 1, 2005.
Sales for the third quarter of $40,836,000 represented a 2.0% decrease from $41,658,000 reported for the same quarter last year. Shipments of bedroom, dining room and occasional furniture for the third quarter of 2005 were lower as compared to the same period last year. The sales decrease in these product categories was partially offset by higher shipments of commercial and upholstered furniture.
Net earnings for the three months ended October 1, 2005 were $1,191,000, or $.27 per share on a diluted basis. This compares to net earnings of $1,979,000, or $.47 per share on a diluted basis, for the year ago period. Third quarter results were impacted by an unfavorable product sales mix and higher compensation related costs, bad debt expense and interest expense as compared to the third quarter of 2004.
For the first nine months of 2005, sales decreased 1.4% to $128,896,000 from $130,763,000 in the year earlier period. Net earnings were $5,540,000, or $1.28 per share on a diluted basis, as compared to $5,511,000, or $1.31 per share on a diluted basis, for the prior year period. Included in 2004 results was a pre-tax charge of $1,100,000, or $.16 per share after-tax, to reflect a supplemental retirement benefit to the former President and Chief Executive Officer of the Company.
Commenting on third quarter results, Mr. Benjamin Anderson-Ray, Chairman and Chief Executive Officer, stated that upholstered furniture shipments were boosted by new product introductions.
He added that commercial furniture sales activity continues to reflect an improved business environment for the office furniture industry. Mr. Anderson-Ray pointed out that the Company recently entered into a new credit agreement with Wells Fargo Bank, N.A. that provides for a revolving loan facility of up to $35 million on an unsecured basis. Mr. Anderson-Ray said that the Company's financial strength provides flexibility to grow its hybrid manufacturing /sourcing model, repurchase its common stock and pursue selective strategic acquisitions.
Chromcraft Revington is a family of niche-oriented businesses that designs, manufactures and sells residential and commercial furniture under the "Chromcraft," "Peters-Revington," "Silver Furniture," "Cochrane Furniture" and "Sumter Cabinet Company" brand names.