The Rowe Companies Announces First Quarter Operating Results

Furniture World Magazine

The Rowe Companies a leading furniture manufacturer and retailer, reported operating results for the first quarter ended March 3, 2002. Revenues increased 1.5%, to $81.6 million, compared with $80.4 million for the same period last year. Gross profit margins increased to 33.7% for the first period, up from 32.9% for the same period last year. Net earnings amounted to $699 thousand, or $0.05 per diluted share, up from a loss of $(806) thousand for the comparable prior year period, or $(0.06) per diluted share. "We are pleased to see the rewards from all of our hard work," said Gerald M. Birnbach, Chairman and President. "The sales teams have worked hard to replace the business lost last year, and as a result, we are able to report an increase in net shipments. At the same time, we have improved our margins and reduced our selling and administrative costs compared to last year. Additionally, as reported previously, we have received new financing commitments from our lenders that will provide greater flexibility, increasedcredit availability and lower pricing. While we still have a long way to go, we are pleased with the progress to date. We will continue to work to further improve our operating results and financial health." The Rowe Companies is comprised of Rowe Furniture, a major manufacturer of quality upholstered furniture; The Mitchell Gold Co., an upholstered furniture manufacturer serving some of the nation's leading specialty retailers; Storehouse, Inc., a 40-store retail furniture chain; and Home Elements, a 19-store specialty retail furniture group.