LADD REPORTS RECORD FIRST QUARTER SALES
Commenting on the quarterly results, LADD chairman and chief executive officer Richard R. Allen noted that the year-over-year sales comparison benefited from the inclusion of Pilliod Furniture for the entire 1995 first quarter versus only two months in the 1994 period. "Adjusting for this difference," Allen said, "first quarter sales increased 5 percent from a year earlier. However, gross margins in the first quarter continued to suffer from some of the same factors that negatively impacted LADD's fourth quarter results, including significantly higher raw material costs and very competitive industry pricing conditions. We also incurred substantial expenses related to LADD's extensive new product introductions for the spring International Home Furnishings Market which officially began here in High Point this morning."
Allen said the residential furniture industry has experienced a slowdown in the early months of 1995. "Major furniture retailers have reported significant reductions in the growth of same store sales and, in some instances, have reported overall sales declines," Allen said. He added, "This is probably explained by the combination of a slower- growing economy, increased consumer indebtedness and the declines in housing sales during recent months. However," he concluded, "the U.S. economy still appears to be on solid ground with inflationary pressures remaining under control, and we anticipate an improved business environment for our industry in the second half of the year."
This view was seconded by LADD president and chief operating officer Fred L. Schuermann, Jr., who said, "In the face of the retail slowdown of the last few months, the furniture dealers to whom we have recently spoken remain surprisingly upbeat. Our experience during the premarket earlier this month was quite encouraging, and we believe LADD's companies are coming into this spring market with a strong assortment of new products. We are looking forward to an excellent overall market for LADD."
Senior vice president and chief financial officer William S. Creekmuir commented that capital spending for the first quarter totaled $3.2 million, compared to $10.1 million in the prior year. He said, "LADD's capital investment program, which totaled $56.5 million over the past two years, is returning to a level more in line with our current depreciation and amortization level of approximately $18 million per year."
Headquartered in High Point, NC, LADD is one of the largest North American manufacturers of residential furniture and a leading supplier of contract furniture to the guest room, government and health care markets both domestically and abroad. LADD sells its wide range of wood, upholstered and metal furniture products under the major brand names American Drew, American of Martinsville, Barclay, Brown Jordan, Clayton Marcus, Daystrom, Design Horizons, Fournier, Lea, Pennsylvania House and Pilliod, and markets these products worldwide through LADD International. LADD also owns and operates two support companies, Lea Lumber & Plywood and LADD Transportation. LADD's stock is traded on the Nasdaq National Market under the symbol LADF.
LADD FURNITURE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (PRELIMINARY AND UNAUDITED) Quarter Ended April 1, 1995 April 2, 1994 Net sales $153,388,000 139,039,000 `
Earnings before interest
and income taxes 2,838,000 4,063,000 Interest expense 2,803,000 1,634,000 Earnings before income taxes 35,000 2,429,000 Income tax expense 11,000 774,000 Net earnings $ 24,000 1,655,000 Net earnings per common share $ 0.00 0.07
Weighted average number of
common shares outstanding 23,111,471 23,066,506
The 1994 figures include Pilliod Furniture as of January 31, 1994, the date on which Pilliod was acquired by LADD.
/EDITOR'S ADVISORY: LADD is an acronym and is spelled in all caps./
/CONTACT: John J. Ong of LADD Furniture, Inc., 910-888-6353/
CO: LADD Furniture, Inc. ST: North Carolina IN: REA HOU SU: ERN
CM-MB -- CH006 -- 1868 04/27/95 09:43 EDT
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|Date:||Apr 27, 1995|
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