Bush Industries Reports Second Quarter Results In Line With Expectations

Furniture World Magazine

Bush Industries, Inc. (NYSE:BSH), a diversified global furniture manufacturer and leading supplier of surface technologies, reported net sales of $78.9 million and net income of $541,000, or $0.04 per diluted share, and net sales of $167.3 million and net income of $1.6 million, or $0.12 per diluted share, respectively for the second quarter and six months ended June 29, 2002. Consolidated net sales for the second quarter of 2002 of $78.9 million were in line with prior guidance of $78.0 million to $83.0 million. Paul Bush, Chairman and Chief Executive Officer of Bush Industries, said, “Our combined North American furniture divisions in the second quarter posted a 13 percent year-overyear gain despite an inventory rationalization by one of our largest customers late in the quarter. However, the continued softness in Europe and the delay of a key customer rollout in our Technologies division negatively impacted our results on a year-over-year basis." Consolidated net sales for the quarter were approximately 4.4 percent ahead of the comparable period of a year ago, which were $75.6 million. Net income for the second quarter of 2002 of $541,000, or $0.04 per diluted share, was in line with prior guidance of $0.03 to $0.06 per diluted share. Net income reported for the second quarter of 2001 was $1.4 million, or $0.10 per diluted share. For the first half of 2002, net income was $1.6 million, or $0.12 per diluted share, compared with net income of $5.3 million, or $0.38 per diluted shared, for the first six months of 2001. In accordance with Statement of Financial Accounting Standards No. 142 (SFAS No. 142), after the addition of the amortization expense relating to goodwill, net income was $1.7 million, or $0.12 per diluted share, and $5.9 million, or $0.42 per diluted share, respectively for the second quarter and first six months of 2001. Additionally, under SFAS No. 142, the Company has completed the first step of a required transitional evaluation to determine whether there has been an indication of goodwill impairment. As a result of this transitional evaluation, the Company may record a non-cash charge for goodwill impairment of up to $2.4 million, or $0.17 per diluted share, in the second half of fiscal 2002 as a cumulative effect of change in accounting principle. The impairment is related to the Company’s European operations, and the Company does not expect any impairment in its other divisions.