Chromcraft Revington, Inc. Reports Second Quarter and First Half Results.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. . -- 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 July July: see month. 1, 2006 of $40,320,000, representing a 7.1% decrease as compared to sales of $43,401,000 for the prior year period. Second quarter shipments of occasional, bedroom, dining room and commercial furniture were lower than the prior year period while shipments of upholstered furniture were slightly higher. Net earnings for the second quarter of 2006 were $676,000, or $.15 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 $2,093,000, or $.48 per share on a diluted basis, for the same period last year. For the six months ended July 1, 2006, sales were $86,241,000, representing a 2.1% decrease as compared to sales of $88,060,000 for the prior year period. For the first half of 2006, lower shipments of bedroom, commercial and dining room furniture were partially offset by higher sales of occasional and upholstered furniture. Net earnings for the six months ended July 1, 2006 were $1,805,000, or $.40 per share on a diluted basis, as compared to $4,349,000, or $1.01 per share on a diluted basis, for the year ago period. Commenting on these results, Frank T. Kane Kane can refer to: In sports:
emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to reduced shipments of bedroom furniture due to competitive pressure. He added that net earnings for 2006 were primarily impacted by a reduced domestic production level which affected fixed cost absorption absorption [Lat.,=sucking from], taking of molecules of one substance directly into another substance. It is contrasted with adsorption, in which the molecules adhere only to the surface of the second substance. and manufacturing efficiencies, an unfavorable sales mix sales mix See product mix. , and higher manufacturing, selling and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . He commented that sales results for 2006 reflect increased shipments of imported finished furniture as compared to the prior year period. Kane pointed out that the Company's financial position remained strong with available cash and no bank borrowings at quarter end. Looking forward, Benjamin M. Anderson-Ray, Chairman and Chief Executive Officer, noted that the Company recently consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: its occasional and casual dining furniture sales forces to provide improved service and to build stronger relationships with customers. Anderson-Ray said, "By combining the sales forces of the Chromcraft, Peters-Revington and Silver Furniture brands, we will provide customers more unified, dedicated and stronger sales representation as well as a wider selection of products." He also stated that a goal of the integration of the sales organizations is to expand distribution coverage and improve sales effectiveness. He added that the unified sales force will be fully focused on the sales growth of these product lines. Anderson-Ray also commented on the strategic direction of the Company as it continues to adapt to the global furniture marketplace. He stated that the Company is committed to leveraging a hybrid strategy utilizing significantly greater global sourcing combined with 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. U.S. assembly and distribution operations to provide customers with value, product selection and service. The Company continues to increase its global sourcing of lower cost furniture parts and finished goods to improve its overall consumer and customer value proposition. In addition, he noted that the Company's expanded domestic build-to-order furniture programs have been well received and are growing consistently. Anderson-Ray pointed out that as the Company adapts to the global furniture market and shifts its focus to increased utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of a global supply chain, 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 and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. 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 products 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. " brand names. 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," "may," "expects" 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 general economic conditions; import and domestic competition in the furniture industry; execution of 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 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 effect 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 December: see month. 31, 2005. The Company does not undertake any obligation to update or revise publicly any forward-looking statements to reflect information, events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of such statements or to reflect the occurrence of anticipated or unanticipated events or circumstances.
Condensed Consolidated Statements of Earnings (unaudited)
Chromcraft Revington, Inc.
(In thousands, except per share data)
Three Months Ended Six Months Ended
------------------ -----------------
July 1, July 2, July 1, July 2,
2006 2005 2006 2005
--------- -------- -------- --------
Sales $40,320 $43,401 $86,241 $88,060
--------- -------- -------- --------
Gross margin 8,115 10,232 17,127 20,791
Selling, general and
administrative expenses 6,922 6,752 14,048 13,581
--------- -------- -------- --------
Operating income 1,193 3,480 3,079 7,210
Interest expense 53 164 130 318
--------- -------- -------- --------
Earnings before income tax expense 1,140 3,316 2,949 6,892
Income tax expense 464 1,223 1,144 2,543
--------- -------- -------- --------
Net earnings $676 $2,093 $1,805 $4,349
========= ======== ======== ========
Earnings per share of common stock
Basic $.15 $.49 $.41 $1.02
Diluted $.15 $.48 $.40 $1.01
Shares used in computing earnings
per share
Basic 4,406 4,299 4,398 4,253
Diluted 4,467 4,340 4,460 4,306
Condensed Consolidated Balance Sheets (unaudited)
Chromcraft Revington, Inc.
(In thousands)
July 1, July 2, December 31,
2006 2005 2005
---------- --------- ------------
Cash and cash equivalents $ 2,755 $ - $ -
Accounts receivable 19,112 20,085 18,735
Inventories 37,174 36,157 37,009
Prepaid expenses and other 1,770 2,351 1,922
---------- --------- ------------
Current assets 60,811 58,593 57,666
Property, plant and equipment, net 29,375 31,200 30,274
Deferred income taxes and other long-
term assets 924 818 1,319
---------- --------- ------------
Total assets $ 91,110 $ 90,611 $ 89,259
========== ========= ============
Accounts payable $ 4,604 $ 5,316 $ 5,448
Accrued liabilities 8,278 8,433 7,340
---------- --------- ------------
Current liabilities 12,882 13,749 12,788
Bank debt - 4,100 -
Deferred compensation 1,813 2,593 2,486
Other long-term liabilities 1,267 1,658 1,323
---------- --------- ------------
Total liabilities 15,962 22,100 16,597
Stockholders' equity 75,148 68,511 72,662
---------- --------- ------------
Total liabilities and
stockholders' equity $ 91,110 $ 90,611 $ 89,259
========== ========= ============
Condensed Consolidated Statements of Cash Flows (unaudited)
Chromcraft Revington, Inc.
(In thousands)
Six Months Ended
-----------------
July 1, July 2,
2006 2005
-------- --------
Operating Activities
Net earnings $ 1,805 $ 4,349
Adjustments to reconcile net earnings to net
cash provided by operating activities
Depreciation expense 1,668 1,822
Non-cash ESOP compensation expense 438 432
Non-cash stock compensation expense 243 65
Deferred income taxes 62 298
Loss on disposal of property, plant and
equipment 19 232
Changes in operating assets and
liabilities
Accounts receivable (377) (1,952)
Inventories (165) (2,491)
Prepaid expenses and other 152 (810)
Accounts payable and accrued
liabilities 65 33
Deferred compensation and other long-
term assets and liabilities (367) (316)
-------- --------
Cash provided by operating activities 3,543 1,662
-------- --------
Investing Activities
Capital expenditures, net (788) (764)
-------- --------
Cash used in investing activities (788) (764)
-------- --------
Financing Activities
Net borrowings under a bank revolving credit line - 2,650
Principal payments on a bank term loan - (4,250)
Stock repurchase from related party - (754)
Exercise of stock options, net of tax benefit - 1,456
-------- --------
Cash used in financing activities - (898)
-------- --------
Change in cash and cash equivalents 2,755 -
Cash and cash equivalents at beginning of period - -
-------- --------
Cash and cash equivalents at end of period $ 2,755 $ -
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