Chromcraft Revington, Inc. Doubles Second Quarter Earnings Per Share.Business Editors DELPHI Delphi (dĕl`fī), locality in Phocis, Greece, near the foot of the south slope of Mt. Parnassós, c.6 mi (10 km) northeast of the port of Cirrha. It was the seat of the Delphic oracle, the most famous and most powerful of ancient Greece. , Indiana--(BUSINESS WIRE)--July 23, 2002 Chromcraft Revington, Inc. (NYSE NYSE See: New York Stock Exchange :CRC (Cyclical Redundancy Checking) An error checking technique used to ensure the accuracy of transmitting digital data. The transmitted messages are divided into predetermined lengths which, used as dividends, are divided by a fixed divisor. ) today announced a 100 percent increase in earnings per share for the second quarter as compared to the same period last year. For the second quarter of 2002, net earnings and earnings per share, on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, were $2,169,000 and $.52 per share, respectively, as compared to $2,486,000 and $.26 per share, respectively, for the prior year period. Sales for the second quarter were $54,660,000 or 1.4 percent higher as compared to the prior year period. The number of weighted average shares outstanding in the second quarter of 2002 was 4,031,000 as compared to 9,573,000 in the second quarter of 2001. For the six months ended June June: see month. 29, 2002 net earnings and earnings per share, on a diluted basis, before the cumulative effect of an accounting change, were $5,498,000 and $.86 per share, respectively, as compared to $5,978,000 and $.62 per share, respectively, for the prior year period. In the first quarter of 2002, the Company recorded a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. , non-cash transition charge of $26,727,000 (net of tax), or $4.24 loss per share, for the impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of goodwill as required for the adoption of Statement of Financial Accounting Standards No. 142. After the accounting change, the Company had a net loss of $21,229,000, or $3.37 loss per share, for the six months ended June 29, 2002. For the first six months of 2002, sales were $115,474,000 or 3.5 percent lower as compared to the prior year period. Commenting on second quarter results, Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. E. Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs , President and Chief Executive Officer, said that the sales increase was primarily due to higher shipments of dining room, bedroom and occasional furniture. The sales increase was partially offset by lower shipments of commercial and upholstered furniture. The decline in commercial furniture shipments is primarily due to the office furniture industry downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. . Thomas added that operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the second quarter was lower as compared to the year earlier period primarily due to higher compensation-related expenses. As previously reported, on March 15, 2002 the Company repurchased 3,695,418 shares of its common stock from Court Square Capital Limited ("Court Square"), a unit of Citigroup Citigroup U.S. holding company formed in 1998 from the merger of Citicorp (itself a holding company incorporated in 1967) and Travelers Group, Inc. The $70 billion merger included one of the largest U.S. investment banks, Salomon Smith Barney Inc. . In addition, the Company's employee stock ownership plan purchased 2,000,000 shares of common stock from Court Square. In the two transactions, Court Square sold all of its 5,695,418 shares of common stock of Chromcraft Revington, at that time representing approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 59% of the Company's outstanding shares. The total purchase price of $59,754,180, or approximately $10.49 per share, was financed with bank borrowings and available cash. Thomas commented that as a result of these transactions, Chromcraft Revington's bank debt and interest expense are higher in 2002 as compared to 2001 and there are fewer shares of the Company's common stock outstanding. He added that the lower number of common shares outstanding as compared to last year favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted second quarter earnings per share. Looking forward, Thomas said that incoming Incoming is a 3-D shooter developed by Rage Software and published by Interplay. The PC version was released in late 1998, and the Dreamcast version, a launch title for the console, was released in 1998 in Japan and in 1999 in the rest of the world. orders have slowed from the level seen earlier in the year. He added that the Company expects that third quarter earnings per share, on a diluted basis, will be between $.45 and $.50, as compared to $.24 for the prior year period. For the full year 2002, the Company expects diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , before the accounting change, to be in the $1.75-$1.85 range as compared to $1.09 reported for 2001. Chromcraft Revington designs, manufactures and sells residential and commercial furniture throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. under the "Chromcraft," "Peters-Revington," "Silver Furniture," "Cochrane For places named Cochrane, see . Cochrane is a surname of Scottish derivation. Introduction Cochrane is a Scottish surname that is found throughout the British Isles. The surname Cochrane is the 1,339th most common last name in the United Kingdom. In the U.K. Furniture" and "Sumter Sumter, city (1990 pop. 41,943), seat of Sumter co., central S.C.; founded 1785, inc. 1845. It is the commercial, processing, and shipping center of a timber and agricultural region. Cabinet" brand names. This news release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding Chromcraft Revington's future performance. These forward-looking statements are based upon certain assumptions as well as current expectations and projections about future events and are subject to uncertainties. As a result, the forward-looking statements contained in this release could turn out significantly different from expectations and projections or may not occur. Further, actual results may differ materially from those described in any forward-looking statements. Additional information concerning potential factors that could affect Chromcraft Revington's actual financial results is included in its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2001.
Condensed Consolidated Statements of Earnings (Loss) (unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
-------------------- --------------------
June 29, June 30, June 29, June 30,
2002 2001 (a) 2002 2001 (a)
-------- -------- -------- --------
Sales $ 54,660 $ 53,893 $115,474 $119,687
-------- -------- -------- --------
Gross margin 11,812 11,368 25,304 26,062
Selling, general and
administrative expenses 7,772 7,097 15,768 15,757
-------- -------- -------- --------
Operating income 4,040 4,271 9,536 10,305
Interest expense 542 194 669 504
-------- -------- -------- --------
Earnings before income taxes
and accounting change 3,498 4,077 8,867 9,801
Income tax expense 1,329 1,591 3,369 3,823
-------- -------- -------- --------
Earnings before
accounting change 2,169 2,486 5,498 5,978
Cumulative effect of an
accounting change (net
of tax benefit) - - (26,727) -
-------- -------- -------- --------
Net earnings (loss) $ 2,169 $ 2,486 $(21,229) $ 5,978
======== ======== ======== ========
Earnings per share of
common stock before an
accounting change
Basic $ .54 $ .26 $ .87 $ .62
Diluted $ .52 $ .26 $ .86 $ .62
Earnings (loss) per share
of common stock after an
accounting change
Basic $ .54 $ .26 $ (3.37) $ .62
Diluted $ .52 $ .26 $ (3.37) $ .62
Shares used in computing
earnings per share
Basic 4,031 9,573 6,299 9,573
Diluted 4,178 9,695 6,407 9,700
(a) Certain amounts have been reclassified to conform to the current
year presentation.
Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
June 29, June 30, December 31,
2002 2001 2001
-------- -------- --------
Cash and cash equivalents $ - $ - $ 8,207
Accounts receivable 24,444 25,663 21,025
Inventories 43,909 52,082 43,595
Other assets 5,673 4,244 5,112
-------- -------- --------
Current assets 74,026 81,989 77,939
Property, plant and equipment, net 40,428 43,452 42,107
Goodwill - 28,832 28,180
Other long term assets 1,772 485 842
-------- -------- --------
Total assets $116,226 $154,758 $149,068
======== ======== ========
Accounts payable $ 8,337 $ 5,740 $ 5,600
Accrued liabilities 13,881 12,463 12,068
Current portion of bank debt 5,000 - -
-------- -------- --------
Current liabilities 27,218 18,203 17,668
Bank debt 38,900 9,400 -
Other long term liabilities 10,182 10,932 10,656
-------- -------- --------
Total liabilities 76,300 38,535 28,324
Stockholders' equity 39,926 116,223 120,744
-------- -------- --------
Total liabilities and
stockholders' equity $116,226 $154,758 $149,068
======== ======== ========
Condensed Consolidated Statements of Cash Flows (unaudited)
(In thousands)
Six Months Ended
--------------------
June 29, June 30,
2002 2001
-------- --------
Operating Activities
Net earnings (loss) $(21,229) $ 5,978
Adjustments to reconcile net earnings (loss)
to net cash provided by operating activities
Depreciation and amortization 2,443 3,036
Loss on disposal of equipment 100 -
Deferred income taxes (180) 139
Non-cash goodwill impairment loss 26,727 -
Non-cash ESOP expense 280 -
Stock option compensation expense 58 -
Changes in assets and liabilities
Accounts receivable (3,419) (111)
Inventories (314) 3,297
Accounts payable and accrued liabilities 4,564 (1,965)
Other (346) 74
-------- --------
Cash provided by operating activities 8,684 10,448
-------- --------
Investing Activities
Capital expenditures (983) (1,099)
Proceeds on disposal of property,
plant and equipment 119 10
-------- --------
Cash used in investing activities (864) (1,089)
-------- --------
Financing Activities
Net borrowing (repayment) under bank debt 43,900 (9,800)
Purchase of common stock by ESOP (20,000) -
Stock repurchase and related costs (40,583) -
Proceeds from exercise of stock options 656 -
-------- --------
Cash used in financing activities (16,027) (9,800)
-------- --------
Decrease in cash and cash equivalents (8,207) (441)
Cash and cash equivalents at beginning of period 8,207 441
-------- --------
Cash and cash equivalents at end of period $ - $ -
======== ========
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