Chromcraft Revington, Inc. Reports Fourth Quarter and 2006 Results.WEST LAFAYETTE West Lafayette, city (1990 pop. 25,907), Tippecanoe co., W Ind., a suburb of Lafayette, on the Wabash River; inc. 1924. A primarily residential city, it is the seat of Purdue Univ. , Ind. -- Chromcraft Revington, Inc. (AMEX AMEX See: American 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 sales for the three months ended December 31, 2006 of $38,889,000, representing a 4.4% decrease as compared to sales of $40,669,000 for the prior year period. Shipments for the current quarter were lower as compared to the prior year period primarily due to competitive pressure from imports and a weak retail furniture environment. Product category shipments of dining room, bedroom and upholstered furniture were lower in the fourth quarter and were partially offset by higher shipments of commercial and occasional furniture as compared to last year's fourth quarter. For the year ended December 31, 2006, sales were $160,478,000, a 5.4% decrease from $169,565,000 reported for the prior year. The Company previously announced restructuring activities to shutdown, relocate, consolidate and outsource certain furniture manufacturing and distribution operations in order to reduce fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). , to improve the utilization of a global supply chain and to increase asset utilization. As a result, the Company recorded a restructuring and impairment charge of $1,599,000 pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern or $1,030,000 after-tax, representing a $.23 loss per share for the three months ended December 31, 2006. For the year ended December 31, 2006, total restructuring and impairment charges were $7,372,000 pre-tax or $4,703,000 after-tax representing a $1.07 loss per share. After recognizing this restructuring and impairment charge, the net loss for the fourth quarter of 2006 was $741,000 or $.17 loss per share, as compared to net earnings of $1,705,000, or $.38 per share on a diluted basis for the prior year period. Excluding the impact of the restructuring and impairment charge, the Company would have had net earnings of $289,000, or $.06 per share on a diluted basis, for the three months ended December 31, 2006. In addition, operating results for the fourth quarter of 2006 were impacted by the wind down of certain operations, which affected fixed cost absorption and manufacturing efficiencies, and higher professional fees and employment related costs. In connection with the restructuring, the Company utilized a deferred income tax asset for a state net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. carryforward for income realized at a subsidiary level on the cancellation of intercompany indebtedness. In addition, the Company determined that it is unlikely that the remaining portion of this state net operating loss carryforward will be utilized. As a result, the Company recorded a non-cash income tax charge of $325,000, or $.07 loss per share, for the year ended December 31, 2006 to reflect the establishment of a valuation allowance and the reduction of the deferred income tax asset. For the year ended December 31, 2006, the net loss and loss per share were $3,393,000 and $.77, respectively, as compared to net earnings of $7,245,000, or $1.66 per share on a diluted basis, for the prior year. Excluding the impact of the restructuring and impairment charge and the non-cash income tax charge, the Company would have had net earnings of $1,635,000 or $.37 per share on a diluted basis, for 2006. At December 31, 2006, the Company had cash and cash equivalents of $8,418,000 and no bank borrowings. Mr. Ben Anderson-Ray, Chairman and Chief Executive Officer, said that the restructuring activities are an important step in repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. the Company in the global furniture marketplace and in strengthening its ability to remain competitive. The Company's overall strategy requires a transformation of its business model to increased global sourcing activities, as well as a conversion of U.S. operations towards an increased focus on distribution and logistics of imported products. In addition, the Company will continue to shift its manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. towards use of demand flow and value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. mass customization techniques. "We believe our restructuring efforts, which are enabling the Company to transition at an aggressive pace of change, and our strong balance sheet will enable us to implement our strategic initiatives in the upcoming year," said Anderson-Ray. "We are shifting to a more integrated approach with the creation of a single sales management Sales Management Role and Goal Importance of sales management is critical for any commercial organization. Expanding business in not possible without increasing sales volumes, and effective sales management goal is to organize sales team work in such a manner that ensures a function and a coordinated multi-brand marketing function. The Company's divisional furniture manufacturing culture is transforming into a global consumer products brand culture that is intentional, disciplined and driven by functional leadership. Our vision is to offer consumer based differentiation and speed-to-market advantages for our customers with a combination of imported and domestic built-to-order mass customization products." As part of the restructuring efforts, the Company has recently consolidated to three operations for improved service, outsourced certain product lines to improve their value proposition, opened a new Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. market showroom, launched a new trade identity for its residential products under the 'CR Home' banner, and appointed key executives to lead the unified sales and marketing functions of all of its brands. "We are rapidly transforming the organization to better focus on consumers and customers with a family of related brands that work in a unified manner," added Anderson-Ray. Anderson-Ray commented that business conditions remain soft at retail and that first quarter shipments are expected to be lower than the prior year period. He pointed out that, in connection with the restructuring activities, the Company expects to incur approximately $500,000 in additional expenses during the year ending December 31, 2007 for one-time termination benefits and costs to shutdown, vacate To annul, set aside, or render void; to surrender possession or occupancy. The term vacate has two common usages in the law. With respect to real property, to vacate the premises means to give up possession of the property and leave the area totally devoid of contents. , and prepare the Company facilities held for sale. He added that as the Company continues to adapt to the global furniture marketplace and integrate functions common to its various products, additional restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , asset impairments, transition costs, reduced revenues and/or increased operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. may be necessary in the future. Chromcraft Revington businesses design, manufacture and market 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. . The Company wholesales its residential furniture products under the CR Home banner with "Chromcraft," "Peters-Revington," "Silver Furniture," "Cochrane Furniture" and "Sumter" as brand names. Forward Looking Statements This release contains 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. that are based on current expectations and assumptions. These forward-looking statements can be generally identified as such because they include future tense future tense n. A verb tense expressing future time. Noun 1. future tense - a verb tense that expresses actions or states in the future future or dates, or are not historical or current facts, or include words such as "believes," "expects," "intends," "plans," or words of similar import. Forward-looking statements are not guarantees of performance or outcomes and are subject to certain risks and uncertainties that could cause actual results or outcomes to differ materially from those reported, expected or anticipated as of the date of this release. Among such risks and uncertainties that could cause actual results or outcomes to differ materially from those reported, expected or anticipated are the ability of the Company to complete the restructuring actions referenced in this and earlier press releases as currently planned and at estimated costs; general economic conditions; import and domestic competition in the furniture industry; ability of the Company to execute its business strategies; market interest rates; consumer confidence levels; cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of the furniture industry; consumer and business spending; changes in relationships with customers; customer acceptance of existing and new products; new home and existing home sales Existing Home Sales An economic indicator of both the number and prices of existing single family houses, condos and co-op sales over a one-month period. Released monthly by the U.S. ; and other factors that generally affect business. An additional list of risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's business is located in the Company's 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 fiscal year ended December 31, 2005 and in its Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 30, 2006. The Company does not undertake any obligation to update or revise publicly any forward-looking statements to reflect information, events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events or circumstances.
[TABLE OMITTED]
(1) The Company previously announced restructuring activities to
shutdown, relocate, consolidate and outsource certain furniture
manufacturing and distribution operations in order to reduce fixed
costs, to improve the utilization of a global supply chain and to
increase asset utilization. As a result, the Company recorded
restructuring and impairment charges during the three and twelve
months ended December 31, 2006 of $1,599,000 and $7,372,000
pre-tax, respectively, as follows:
[TABLE OMITTED]
(2) In connection with the restructuring, the Company utilized a
deferred income tax asset for a state net operating loss
carryforward for income realized at a subsidiary level on the
cancellation of intercompany indebtedness. In addition, the
Company determined that it is unlikely that the remaining portion
of this state net operating loss carryforward will be utilized.
As a result, the Company recorded a non-cash income tax charge of
$325,000 for the year ended December 31, 2006 to reflect the
establishment of a valuation allowance and the reduction of the
deferred income tax asset.
[TABLE OMITTED]
[TABLE OMITTED]
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