Chromcraft Revington, Inc. Reports First Quarter Results In Line With Previous Guidance.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)--April 18, 2001 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 reported lower earnings and sales for the first quarter of 2001 as compared to the prior year period. For the three months ended March 31, 2001, net earnings were $3,492,000, or $.36 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, compared to $4,859,000, or $.49 per share on a diluted basis, for the same period last year. Sales for the first quarter of 2001 were $62,901,000 as compared to $73,740,000 for the prior year period. The Company previously reported that it expected first quarter earnings per share on a diluted basis to be in the range of $.33 to $.37. Commenting on these 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 sales and earnings were negatively impacted by the economic and retail slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. that began to impact the Company in the second half of last year. We believe the slowdown is being caused chiefly by sagging sag v. sagged, sag·ging, sags v.intr. 1. To sink, droop, or settle from pressure or weight. 2. consumer confidence and other weak economic news. He added that each subsidiary reported lower sales and earnings in the first quarter as compared to last year. Thomas pointed out that during the first quarter the Company used its excess cash flow to reduce bank indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. by $8.9 million. He also added, "We are operating our businesses cautiously during this weak economic environment and remain focused on our long term strategy of being a low-cost producer." Looking forward, Thomas said that the second quarter would be no less challenging than the first quarter. Entering the second quarter, retail furniture sales continue to remain sluggish and the Company's sales order The sales order, sometimes abbreviated as SO, is an order received by a business from a customer. A sales order may be for products and/or services. Given the wide variety of businesses, this means that the orders can be fulfilled in several ways. backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. is lower as compared to a year ago. In order to control inventories, the Company has scheduled selected downtime The time during which a computer is not functioning due to hardware, operating system or application program failure. during the second quarter at several of its manufacturing facilities. Mr. Thomas added that the Company anticipates that second quarter earnings per share on a diluted basis will be between $.26 and $.31, as compared to $.40 last year. As previously announced, Chromcraft Revington received a proposal from Court Square Capital Limited, 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. , under which the holders of the Company's publicly traded common stock would receive cash of $10.30 per share in a transaction to take the Company private. Court Square Capital Limited is presently conducting its due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. review of Chromcraft Revington. Court Square Capital Limited owns 59.5% of the Company's common stock. 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 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 31, 2000.
Condensed Consolidated Statements of Earnings (unaudited)
(in thousands, except per share data)
Three Months Ended
--------------------
March 31, April 1,
2001 2000
-------- --------
Sales $ 62,901 $ 73,740
-------- --------
Gross margin 14,499 18,115
Selling, general and administrative expenses 8,465 9,639
-------- --------
Operating income 6,034 8,476
Interest expense 310 478
-------- --------
Earnings before income tax expense 5,724 7,998
Income tax expense 2,232 3,139
-------- --------
Net earnings $ 3,492 $ 4,859
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Earnings per share of common stock:
Basic $ .36 $ .49
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Diluted $ .36 $ .49
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Shares used in computing earnings per share:
Basic 9,573 9,911
Diluted 9,705 10,006
Condensed Consolidated Balance Sheets (unaudited)
(in thousands)
March 31, April 1, Dec. 31,
2001 2000 2000
-------- -------- --------
Cash $ - $ - $ 441
Accounts receivable 27,742 35,513 25,552
Inventories 54,310 51,082 55,379
Other assets 3,636 3,463 3,447
-------- -------- --------
Current assets 85,688 90,058 84,819
Property, plant and equipment, net 44,163 44,099 44,747
Intangibles and other assets 29,641 29,580 30,526
-------- -------- --------
Total assets $159,492 $163,737 $160,092
======== ======== ========
Accounts payable $ 7,553 $ 10,883 $ 6,474
Accrued liabilities 17,481 19,530 13,694
Revolving credit facility - 23,400 -
-------- -------- --------
Current liabilities 25,034 53,813 20,168
Revolving credit facility 10,300 - 19,200
Other long term liabilities 10,421 8,943 10,479
-------- -------- --------
Total liabilities 45,755 62,756 49,847
Stockholders' equity 113,737 100,981 110,245
-------- -------- --------
Total liabilities and
stockholders' equity $159,492 $163,737 $160,092
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