LADD REPORTS STRONG THIRD QUARTER SALES GAIN
LADD REPORTS STRONG THIRD QUARTER SALES GAIN HIGH POINT, N.C., Oct. 16 /PRNewswire/ -- LADD Furniture, Inc.
(NASDAQ-NMS: LADF) today reported that net sales for the three months ended September 26, 1992 totaled $124.6 million, an increase of 22 percent over the same quarter of 1991. Third quarter net earnings were $934,000, or $.04 per share, compared to a year-earlier net loss of $1.5 million, or $(.08) per share. This year's third quarter net sales included Fournier Furniture, which LADD acquired as of July 3, 1992. Excluding Fournier, third quarter net sales rose 14 percent compared to the same period of 1991.
Through this year's first nine months, net earnings totaled $3.7 million, or $.18 per share compared to a net loss of $2.2 million, or $(.12) per share, for the comparable 1991 period. Nine-month sales increased 13 percent to $367.7 million this year, from $326.4 million in 1991. Average shares outstanding increased 21 percent in this year's third quarter and rose 10 percent for the first nine months compared to the corresponding periods of 1991, reflecting the 4,025,000 shares of new common stock issued in LADD's May 1992 stock offering. Commenting on the third quarter results, chairman and chief executive officer Richard R. Allen said, "We are pleased with the sales increases being recorded by LADD's operating companies. Increasing our market share is an important LADD goal." Allen said operating margins remained under pressure during the third quarter due to continued intense promotional price discounting, downtime taken in selected plants to control inventory levels and increased lumber costs." Allen said recently-released economic indicators continue to reflect broad-based consumer uncertainty and sluggishness in the U.S. economy. "However," he noted, "retail furniture sales have shown some improvement during the past month or so, following a slowdown during the summer months." Allen concluded, "after the uncertainty regarding the upcoming November elections is resolved, low interest rates and improvements in consumer confidence should lead to better growth rates for our industry during 1993." LADD senior vice president and chief financial officer William S. Creekmuir said the company's long-term debt totaled $80.3 million at September 26, 1992, down from $125.3 million at year-end 1991. Creekmuir noted that long-term debt at the end of the third quarter represented 34.4 percent of total capitalization, including the recent Fournier acquisition, down from 52.0 percent at the end of 1991. "Inventories have also been well-controlled," Creekmuir said, "declining by approximately $2.0 million during the third quarter and by approximately $3.5 million during this year's first nine months, after adjusting for the Fournier acquisition." Headquartered in High Point, NC, LADD is the fourth largest North American manufacturer of residential furniture and a leading supplier of contract furniture to the guest room, government and health care markets domestically and abroad. LADD sells its broad 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 Industries and Pennsylvania House 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 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 Sept. 26, 1992 Sept. 28, 1991 Net Sales $ 124,610,000 101,802,000 Earnings before interest and income taxes 3,207,000 318,000 Interest expense 1,543,000 2,482,000 Earnings (loss) before income taxes 1,664,000 (2,164,000) Income tax expense (benefit) 730,000 (625,000) Net earnings (loss) $ 934,000 (1,539,000) Net earnings (loss) per common share $ 0.04 (0.08) Weighted average number of common shares outstanding 23,016,054 18,982,537 39 Weeks Ended Sept. 26, 1992 Sept. 28, 1991 Net sales $ 367,664,000 326,444,000 Earnings before interest and income taxes 11,816,000 5,000,000 Interest expense 5,871,000 8,004,000 Earnings (loss) before income taxes 5,945,000 (3,004,000) Income tax expense (benefit) 2,272,000 (817,000) Net earnings (loss) $ 3,673,000 (2,187,000) Net earnings (loss) per common share $ 0.18 (0.12) Weighted average number of common shares outstanding 20,875,363 18,932,867 -0- 10/16/92 /CONTACT: John J. Ong of LADD Furniture, Inc., 919-888-6353/ (LADF) CO: LADD Furniture, Inc. ST: North Carolina IN: REA SU: ERN
CM -- CH002 -- 0813 10/16/92 09:30 EDT
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|Date:||Oct 16, 1992|
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