Printer Friendly

LADD REPORTS LOSS FOR 1991 FOURTH QUARTER AND FULL YEAR

 LADD REPORTS LOSS FOR 1991 FOURTH QUARTER AND FULL YEAR
 HIGH POINT, N.C., Feb. 12 /PRNewswire/ -- LADD Furniture, Inc. today reported a net loss of $10.6 million, or $.56 per share, for the quarter ended Dec. 28, 1991, compared to a 1990 fourth quarter net loss of $6.7 million, or $.35 per share. For the year ended Dec. 28, 1991, LADD incurred a net loss of $12.7 million, or $.67 per share, as compared to net income of $480 thousand, or $.03 per share, in 1990. The 1990 fourth quarter and full year results include an aftertax restructuring charge of $5.6 million, or $.27 per share. Fourth quarter net sales for 1991 totaled $102.7 million, down from $113.8 million in the same quarter of 1990, while full year net sales declined to $429 million last year from 1990's $512 million. The 1991 figures are preliminary and unaudited.
 Commenting on these results, chairman Richard R. Allen, said LADD significantly increased its reserve for bad debts during 1991's fourth quarter, "in light of continuing weakness in the furniture retailing sector." Allen continued, "In response to the ongoing U.S. furniture industry recession, LADD's operating businesses scheduled considerable plant downtime during the final three months of 1991. A decline in fourth quarter production from that of the prior quarter resulted in higher unabsorbed manufacturing overhead, and continued intense price discounting put further pressure on profit margins in the final three months of 1991." Allen said LADD also accrued severance and early retirement pension expenses during the fourth quarter and wrote off the unamortized balance of acquisition financing costs.
 Noting that LADD's 1991 fourth quarter sales were slightly above the previous quarter's $101.8 million level, Allen said, "While there has been some moderate improvement in business recently, we expect the domestic furniture industry to show only very slow recovery in early 1992 as a result of continuing weakness in U.S. consumer confidence." He continued: "Current low U.S. interest rates should eventually prove very stimulative for both the economy and our industry. However, consumers will most likely continue to postpone major durable goods purchases such as furniture for a while yet, as evidenced by the further erosion in U.S. consumer confidence recently reported for January." Allen concluded, "LADD management has taken numerous actions to return the company to profitability, including reduced staffing levels, aggressive cost-reduction programs and careful asset and inventory management."
 LADD executive vice president and chief financial officer Frederick L. Schuermann said inventories at the end of 1991 totaled $80.1 million, down from $86.3 million a year earlier and $81.1 million at the end of 1991's third quarter. Schuermann noted that LADD's total debt at Dec. 28, 1991, was $138.1 million, up slightly from $132.2 million at the end of 1990, primarily due to the 1991 net loss.
 Headquartered in High Point, N.C., LADD is one of the largest U.S. producers of residential and contract furniture, marketing its broad range of wood, upholstered and metal furniture under the major brand names American Drew, American of Martinsville, Barclay, Brown Jordan, Clayton Marcus, Daystrom, Design Horizons, Lea Industries and Pennsylvania House. LADD also owns and operates two support companies, Lea Lumber & Plywood and LADD Transportation and its stock is traded on the over-the-counter National Market System under the NASDAQ symbol LADF.
 LADD FURNITURE, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (PRELIMINARY AND UNAUDITED)
 13 Weeks Ended
 Dec. 28, 1991 Dec. 29, 1990
 Net sales $102,666,000 113,766,000


Loss before interest
 and income taxes (12,630,000) (7,031,000)
 Interest expense 2,409,000 3,461,000
 Loss before income taxes (15,039,000) (10,492,000)
 Income tax benefit (4,477,000) (3,822,000)
 Net loss $(10,562,000) (6,670,000)
 Net loss per common share $ (0.56) (0.35)
 Weighted average number of common
 shares outstanding 18,984,452 18,840,460
 52 Weeks Ended
 Dec. 28, 1991 Dec. 29, 1990
 Net sales $429,110,000 511,911,000


Earnings (loss) before interest
 and income taxes (7,630,000) 16,181,000
 Interest expense 10,413,000 14,799,000
 Earnings (loss) before income taxes (18,043,000) 1,382,000
 Income tax expense (benefit) (5,294,000) 902,000
 Net earnings (loss) $(12,749,000) 480,000
 Net earnings (loss) per
 common share $ (0.67) 0.03
 Weighted average number of common
 shares outstanding 18,945,763 18,832,853
 -0- 2/12/92
 /CONTACT: John J. Ong, LADD Furniture, Inc., 919-888-6353/
 (LADF) CO: LADD Furniture, Inc. ST: North Carolina IN: REA SU: ERN


CM-DF -- CH003 -- 9324 02/12/92 14:31 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 12, 1992
Words:785
Previous Article:NORTH EUROPEAN OIL ROYALTY TRUST REPORTS RESULTS
Next Article:STEELWORKERS LOCAL 1011 TO HOLD HEARING ON UNSAFE WORKING CONDITIONS AT LTV HARBOR WORKS PLANT
Topics:


Related Articles
LADD EXPECTS FOURTH QUARTER LOSS, SUSPENDS DIVIDEND
LADD REPORTS HIGHER SECOND QUARTER SALES AND EARNINGS
LADD REPORTS HIGHER SECOND QUARTER SALES AND EARNINGS
LADD REPORTS STRONG THIRD QUARTER SALES GAIN
LADD REPORTS IMPROVED 1992 SALES AND EARNINGS
LADD FURNITURE TO REPORT LOWER FOURTH QUARTER
LADD EXPECTS 1994 RESULTS BELOW ANALYSTS' ESTIMATES
LADD REPORTS FOURTH QUARTER, FULL YEAR OPERATING RESULTS
LADD Reports $1.6 Million Profit For Fourth Quarter
$1.6 million profit for Ladd's fourth quarter.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters