Printer Friendly


 POMPANO BEACH, Fla., Dec. 7 /PRNewswire/ -- Loewenstein Furniture Group, Inc. (NASDAQ: LOEW) today released estimated operating results for the fourth quarter of 1993. Before extraordinary charges of $348,000, net of taxes, from a write-off of deferred loan costs in connection with debt repayment and a non-recurring, non-cash charge of $501,000, net of taxes, resulting from a modification of certain stock purchase rights, fourth quarter net income is estimated to be approximately $870,000, a 32 percent increase over the fourth quarter of 1992 net income of $661,000. Earnings per share for the fourth quarter of 1993 is estimated at $.18 per share on 4.9 million average shares outstanding, compared with $.21 per share on 3.1 million average shares outstanding in the fourth quarter of 1992. The 55 percent increase in the weighted average shares outstanding resulted from the company's October 1993 public offering. For the year ended 1993 the company estimates, before extraordinary charges and non-recurring charges, net income of $2.6 million ($.73 per share), compared to year ended 1992 net income of $2.0 million ($.65 per share).
 Net sales for the fourth quarter are estimated at $13.1 million, 16 percent ahead of last year's fourth quarter. Net sales for 1993 are estimated at $44.5 million, 11 percent ahead of net sales for 1992. Estimated fourth quarter 1993 operating income (before the non-recurring charge above) of $1.6 million is expected to be comparable to the fourth quarter of 1992. Operating income for the year is estimated to be approximately $5.7 million, 9 percent ahead of last year.
 Michael P. Haley, chief executive officer, stated: "While fourth quarter sales showed strong growth (16 percent above fourth quarter 1992) and net income, before non-recurring and extraordinary items, increased 32 percent compared with last year's fourth quarter, our operating income did not meet with expectations. Start up costs associated with new refurbishment programs for certain hospitality customers contributed to lower than expected margins. Sales and operating margins were also lower than anticipated because the ready-to-assemble furniture segment's largest customer rescheduled a significant fourth quarter 1993 promotion into 1994. However, this customer has indicated they will now offer our product in all of their stores in 1994 vs. 70 percent of their stores in 1993."
 Haley concluded: "We are looking forward to building on the success achieved during 1993. Our sales growth for the fourth quarter and for the year 1993 is above industry averages, and we expect continued sales growth in 1994 resulting from our growth initiatives. The company's initial public offering, which raised net proceeds of $17.4 million and repaid substantially all of the existing indebtedness, reduced interest expense in the fourth quarter and strengthened our balance sheet, enabling us to complete the previously announced acquisition of Shaffield Industries Inc. which will contribute to our growth in 1994."
 Additionally, Loewenstein Furniture Group announced that it has reached an agreement in principle to acquire, for stock, a California- based manufacturer of ready-to-assemble furniture. It is contemplated that the transaction will be accounted for as a pooling of interests and is expected to be anti-dilutive. Although the acquisition is subject to a number of conditions and there can be no assurance, the company anticipates that the acquisition will be consummated in the first quarter of 1994. The company intends to announce the details of this proposed transaction upon signing a definitive merger agreement.
 Loewenstein Furniture Group, Inc., headquartered in Pompano Beach, Fla., is a diversified manufacturer of contract seating and ready-to- assemble furniture. The company's five manufacturing facilities are Loewenstein, Inc., located in Florida, Gregson Furniture Division and Excel Office and Contract, Inc., located in North Carolina and Southern Wood Products Division and Shaffield Industries Division, located in Tennessee.
 -0- 12/7/93
 /CONTACT: George W. Campagna of Loewenstein Furniture Group, 305-960-1100/

CO: Loewenstein Furniture Group, Inc. ST: Florida IN: REA SU: ERP

JB-SS -- FL009 -- 1470 12/07/93 17:33 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 7, 1993

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