Chromcraft Revington, Inc. Reports Fourth 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. , Ind IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. .--(BUSINESS WIRE)--Feb. 7, 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 reported lower net earnings for the fourth quarter of 2001 of $2,231,000, or $.23 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, as compared to $3,935,000, or $.41 per share on a diluted basis, for the same quarter last year. Sales for the fourth quarter of 2001 of $51,235,000 were 11.6% lower as compared to the prior year period. The Company previously reported that it expected fourth quarter earnings per share on a diluted basis to be in the range of $.18 to $.23. For the year ended December December: see month. 31, 2001, net earnings were $10,543,000, or $1.09 per share on a diluted basis, as compared to $15,450,000, or $1.57 per share on a diluted basis for the same period last year. Sales for 2001 were $217,787,000, a 16.0% decrease from $259,402,000 reported for the prior year period. Commenting on fourth 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 decline in sales and earnings from the year-ago period primarily reflected the continued sluggish retail sales environment due to the economic recession. Fourth quarter sales of occasional, dining room, bedroom and commercial furniture were lower than the prior year period while shipments of upholstered furniture were higher. Lower operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before were primarily due to the lower sales and unabsorbed overhead. The Company responded to this weak sales environment by taking selected downtime The time during which a computer is not functioning due to hardware, operating system or application program failure. to reduce inventory and manage working capital. Cash flow was particularly strong in 2001, allowing the Company to repay all 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. and end the year with $8,207,000 of cash. Thomas pointed out that the Company has implemented cost control programs to improve profitability. Looking forward, Thomas said that 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. at December 31, 2001 was about 15% lower as compared to a year ago. Incoming orders for 2002 are at approximately the same level as compared to the year-ago period. Thomas added that the Company anticipates that first quarter earnings per share on a diluted basis will be between $.29 and $.32, as compared to $.36 last year, before consideration of the impact, if any, of the proposed repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. transaction as described below or the impact of the adoption of FASB Statement FASB Statement A standard set by the Financial Accounting Standards Board regarding a financial accounting and reporting method. Essentially, FASB statements determine the acceptable accounting practices that Certified Public Accountants use in reporting No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ." The Company previously announced that 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. , had accepted Chromcraft Revington's proposal to purchase all of the 5,695,418 shares of common stock of Chromcraft Revington (representing 59.1% of the outstanding shares) owned by Court Square for a total consideration of $59,754,180, or approximately $10.49 per share. The proposed purchase of the Company shares owned by Court Square would be structured such that 2,000,000 shares would be purchased by an employee stock ownership plan ("ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). ") to be formed by Chromcraft Revington, with the remaining shares to be repurchased directly by Chromcraft Revington. The proposed purchase of Court Square's shares is subject to approval by the board of directors of Chromcraft Revington and the trustee of the ESOP, the receipt of fairness opinions Fairness Opinion A report put together by qualified analysts or advisors providing to key decision makers an evaluation of and facts about a merger or acquisition. Notes: A fairness opinion serves as a document used for guidance in a merger, takeover, or acquisition. acceptable to the board of directors of Chromcraft Revington and the ESOP trustee, the execution of necessary stock purchase agreements and the procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. of bank financing on terms and conditions acceptable to Chromcraft Revington. The Company has engaged a trustee bank for the ESOP, who has retained its own financial advisor to provide a fairness opinion in connection with the ESOP purchase of the Company's stock from Court Square. These firms are currently conducting their 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 the Company. The Company anticipates that the stock purchase will close in the first quarter of 2002. 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, plans or objectives. 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, outcomes or events 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 Year Ended
December 31, December 31,
-------------------- --------------------
2001 2000 2001 2000
-------- -------- -------- --------
Sales $ 51,235 $ 57,933 $217,787 $259,402
-------- -------- -------- --------
Gross margin 10,708 13,978 47,516 62,237
Selling, general and
administrative expenses 6,994 7,128 29,545 34,901
-------- -------- -------- --------
Operating income 3,714 6,850 17,971 27,336
Interest expense 56 477 687 2,008
-------- -------- -------- --------
Earnings before income
tax expense 3,658 6,373 17,284 25,328
Income tax expense 1,427 2,438 6,741 9,878
-------- -------- -------- --------
Net earnings $ 2,231 $ 3,935 $ 10,543 $ 15,450
======== ======== ======== ========
Earnings per share
of common stock
Basic $ .23 $ .41 $ 1.10 $ 1.59
======== ======== ======== ========
Diluted $ .23 $ .41 $ 1.09 $ 1.57
======== ======== ======== ========
Shares used in computing
earnings per share
Basic 9,589 9,585 9,577 9,727
Diluted 9,667 9,668 9,685 9,847
Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
December 31,
--------------------
2001 2000
-------- --------
Cash and cash equivalents $ 8,207 $ 441
Accounts receivable 21,025 25,552
Inventories 43,595 55,379
Other assets 5,112 3,447
-------- --------
Current assets 77,939 84,819
Property, plant and equipment, net 42,107 44,747
Intangibles and other assets 29,022 30,526
-------- --------
Total assets $149,068 $160,092
======== ========
Accounts payable $ 5,600 $ 6,474
Accrued liabilities 12,068 13,694
-------- --------
Current liabilities 17,668 20,168
Revolving credit facility - 19,200
Other long term liabilities 10,656 10,479
-------- --------
Total liabilities 28,324 49,847
Stockholders' equity 120,744 110,245
-------- --------
Total liabilities and stockholders' equity $149,068 $160,092
======== ========
Condensed Consolidated Statements of Cash Flows (unaudited)
(In thousands)
Year Ended
December 31,
--------------------
2001 2000
-------- --------
Operating Activities
Net earnings $ 10,543 $ 15,450
Adjustments to reconcile net earnings to
net cash provided by operating activities
Depreciation and amortization 6,109 5,855
Deferred income taxes (424) 347
Changes in assets and liabilities
Accounts receivable 4,527 4,022
Inventories 11,784 (4,929)
Accounts payable and accrued
liabilities (1,497) (3,883)
Other (1,865) (215)
-------- --------
Cash provided by operating activities 29,177 16,647
-------- --------
Investing Activities
Capital expenditures (2,191) (4,953)
Proceeds from disposals of property, plant
and equipment 24 74
-------- --------
Cash used in investing activities (2,167) (4,879)
-------- --------
Financing Activities
Net repayment under revolving
credit facility (19,200) (7,500)
Proceeds from exercise of stock options 1,526 111
Repurchase of common stock (1,570) (5,086)
-------- --------
Cash used in financing activities (19,244) (12,475)
-------- --------
Increase (decrease) in cash and
cash equivalents 7,766 (707)
Cash and cash equivalents at beginning
of the year 441 1,148
-------- --------
Cash and cash equivalents at end of the year $ 8,207 $ 441
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