Chromcraft Revington, Inc. Reports Third Quarter Results.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)--Oct. 24, 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 its third quarter results and a significant increase in earnings per share for the 2002 third quarter as compared to the same period last year. For the three months ended September September: see month. 28, 2002, 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 $.53 per share as compared to $.24 per share for the prior year period. Net earnings for the 2002 third quarter were $2,228,000 as compared to $2,334,000 for the year earlier period. Sales for the three month period ended September 28, 2002 were $49,676,000 or 9.8% lower as compared to the same period last year. The number of weighted average shares outstanding in the third quarter of 2002 was 4,059,000 as compared to 9,573,000 in the third quarter of 2001. For the nine months ended September 28, 2002 net earnings and earnings per share, on a diluted basis, before the cumulative effect of an accounting change, were $7,726,000 and $1.37 per share, respectively, as compared to $8,312,000 and $.86 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 $4.82 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 $19,001,000, or $3.43 loss per share, for the nine months ended September 28, 2002. Sales for the first nine months were $165,150,000, a 5.5% decrease from sales of $174,733,000 reported for the prior year period. For the third quarter of 2002, sales of all residential furniture categories were lower as compared to the same period last year. Commercial furniture shipments for the three month period ended September 28, 2002 were slightly higher as compared to the reduced sales level for the prior year period. 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 , Chairman, President and Chief Executive Officer, said that the third quarter sales decrease was primarily in bedroom furniture and entry-level-priced occasional furniture. He added that the residential furniture sales decline was mainly due to a weak economic environment and increased competition. Thomas pointed out that U.S. furniture manufacturers, including Chromcraft Revington, have been negatively impacted by increased import competition primarily from the Far East. Thomas said that the Company has reduced costs and adjusted production and employment levels in line with the slower economy. Thomas added that 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. was reduced by $3,850,000 during the quarter. 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 earnings per share for the three and nine months ended September 28, 2002. Looking forward, Thomas said that the current business environment remains challenging, with 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 running behind year ago levels. Although the Company anticipates that sales for the three months ending December December: see month. 31, 2002 will be lower than the year earlier period, 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 are expected to be higher - in the range of $.40 to $.50, as compared to $.23 for the prior year period. For the full year 2002, the Company anticipates diluted earnings per share, 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 31, 2001.
Condensed Consolidated Statements of Earnings (Loss) (unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
------------------- -------------------
Sept. 28, Sept. 29, Sept. 28, Sept. 29,
2002 2001 (a) 2002 2001 (a)
-------- -------- -------- --------
Sales $ 49,676 $ 55,046 $165,150 $174,733
-------- -------- -------- --------
Gross margin 11,260 11,164 36,564 37,226
Selling, general and
administrative expenses 7,141 7,212 22,909 22,969
-------- -------- -------- --------
Operating income 4,119 3,952 13,655 14,257
Interest expense 525 127 1,194 631
-------- -------- -------- --------
Earnings before income taxes
and accounting change 3,594 3,825 12,461 13,626
Income tax expense 1,366 1,491 4,735 5,314
-------- -------- -------- --------
Earnings before
accounting change 2,228 2,334 7,726 8,312
Cumulative effect of an
accounting change
(net of tax benefit) - - (26,727) -
-------- -------- -------- --------
Net earnings (loss) $ 2,228 $ 2,334 $(19,001) $ 8,312
======== ======== ======== ========
Earnings per share of
common stock before an
accounting change
Basic $ .55 $ .24 $ 1.39 $ .87
Diluted $ .53 $ .24 $ 1.37 $ .86
Earnings (loss) per share
of common stock after an
accounting change
Basic $ .55 $ .24 $ (3.43) $ .87
Diluted $ .53 $ .24 $ (3.43) $ .86
Shares used in computing
earnings per share
Basic 4,059 9,573 5,547 9,573
Diluted 4,167 9,674 5,655 9,691
(a) Certain amounts have been reclassified to conform to the current
year presentation.
Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
Sept. 28, Sept. 29, Dec. 31,
2002 2001 2001
-------- -------- --------
Cash and cash equivalents $ - $ - $ 8,207
Accounts receivable 24,030 27,291 21,025
Inventories 43,745 47,691 43,595
Other assets 5,308 3,336 5,112
-------- -------- --------
Current assets 73,083 78,318 77,939
Property, plant and equipment, net 39,586 42,705 42,107
Goodwill - 28,506 28,180
Other long term assets 2,022 597 842
-------- -------- --------
Total assets $114,691 $150,126 $149,068
======== ======== ========
Accounts payable $ 6,457 $ 6,669 $ 5,600
Accrued liabilities 15,927 14,342 12,068
Current portion of bank debt 5,000 - -
-------- -------- --------
Current liabilities 27,384 21,011 17,668
Bank debt 35,050 - -
Other long term liabilities 9,861 10,558 10,656
-------- -------- --------
Total liabilities 72,295 31,569 28,324
Stockholders' equity 42,396 118,557 120,744
-------- -------- --------
Total liabilities and
stockholders' equity $114,691 $150,126 $149,068
======== ======== ========
Condensed Consolidated Statements of Cash Flows (unaudited)
(In thousands)
Nine Months Ended
-------------------
Sept. 28, Sept. 29,
2002 2001
-------- --------
Operating Activities
Net earnings (loss) $(19,001) $ 8,312
Adjustments to reconcile net
earnings (loss) to net cash
provided by operating activities
Depreciation and amortization 3,621 4,514
Loss on disposal of property,
plant and equipment 97 -
Deferred income taxes 525 443
Non-cash goodwill impairment loss 26,727 -
Non-cash ESOP expense 504 -
Stock option compensation expense 107 -
Changes in assets and liabilities
Accounts receivable (3,005) (1,739)
Inventories (150) 7,688
Accounts payable and accrued liabilities 4,165 1,000
Other (692) 35
-------- --------
Cash provided by operating activities 12,898 20,253
-------- --------
Investing Activities
Capital expenditures (1,321) (1,509)
Proceeds on disposal of
property, plant and equipment 124 15
-------- --------
Cash used in investing activities (1,197) (1,494)
-------- --------
Financing Activities
Net borrowing (repayment) under
revolving line of credit agreements 16,300 (19,200)
Proceeds from bank term loan 25,000 -
Principal payments on bank term loan (1,250) -
Purchase of common stock by ESOP (20,000) -
Stock repurchase and related costs (40,613) -
Proceeds from exercise of stock options 655 -
-------- --------
Cash used in financing activities (19,908) (19,200)
-------- --------
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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