STANLEYTOWN, Va., Jan. 26 /PRNewswire/ -- Stanley Furniture Company, Inc.
(Nasdaq: STLY) today reported record sales and earnings for 1999. Net sales
of $264.7 million in 1999 increased 7.0% over last year. The comparable sales
increase was 9.1% for 1999, after excluding prior year upholstery sales, which
were phased out in the third quarter of 1998. Net income rose to $19.2
million or $2.47 per diluted share, compared to $14.5 million or $1.82 per
diluted share in 1998. This represents a 36% increase in earnings per diluted
share.
Fourth quarter 1999 net sales of $72.4 million increased 13.1% over the
prior year quarter as new capacity from the expansion of existing facilities
became fully operational. Net income increased to $5.7 million from $3.9
million in the year ago quarter. Diluted earnings per share increased 48.0%
to $.74 from $.50 in the prior year quarter, marking the eighteenth
consecutive quarter for record earnings.
Operating income as a percent of net sales improved to 13.0% for 1999, up
from 11.3% in 1998. The increase came from continued improvement in operating
efficiencies, the phase out of upholstered products which generated a pretax
operating loss of about $1 million in 1998, and lower selling, general and
administrative cost as a percent of net sales.
In August 1999, the Company's Board of Directors increased the
authorization to repurchase shares of its common stock from $10 million to $20
million. Since October 1998, the Company has utilized $10.3 million to
purchase 541,750 shares of its common stock at an average price of $18.94 per
share.
Capital expenditures of approximately $26 million in 1999 were primarily
for capacity expansion projects. Approximately $10 million was used to
increase the output of existing facilities, providing $30-35 million in
annualized sales capacity. This enabled sales to increase 13% in the fourth
quarter of 1999. Also during 1999, approximately $15 million was used to
purchase and equip a new facility dedicated to the production of home office
furniture. This facility will begin production in the first quarter of 2000
and should generate $50-60 million in annualized sales capacity when in full
production in two to three years.
Cash flow for 1999 was very positive due to strong earnings and working
capital management. This enabled the Company to fund its expansion projects
and stock repurchase program, and repay $5.1 million of debt.
"We continue to experience strong demand for our products with orders up
over 10% for 1999," commented Albert L. Prillaman, president and chief
executive officer of Stanley Furniture Company. "We are excited about the new
capacity which will allow us to address the high growth potential in our Young
America(TM) bedroom and home office product categories. We believe this will
allow us to continue to outpace industry sales growth."
Established in 1924, Stanley Furniture Company, Inc. is a leading
manufacturer of wood furniture targeted at the upper-medium price range of the
residential market. Manufacturing facilities are located in Stanleytown and
Martinsville, VA, and Robbinsville, Lexington, and West End, NC. Its common
stock is traded on the Nasdaq stock market under the symbol STLY.
Visit Stanley Furniture on the World Wide Web at http://www.stanleyfurniture.com.
Certain statements made in this release are not based on historical facts,
but are forward-looking statements. These statements can be identified by the
use of forward-looking terminology such as "believes," "expects," "may,"
"will," "should," or "anticipates" or the negative thereof or other variations
thereon or comparable terminology. These statements reflect the Company's
reasonable judgment with respect to future events and are subject to risks and
uncertainties that could cause actual results to differ materially from those
in the forward-looking statements. Such risks and uncertainties include the
cyclical nature of the furniture industry, fluctuations in the price of lumber
which is the most significant raw material used by the Company, competition in
the furniture industry, capital costs, delays in planned expansions, and
general economic conditions.
STANLEY FURNITURE COMPANY, INC.
Operating Results
(In thousands, except per share data)
Three Months Ended
Year Ended
December 31,(unaudited) December 31,
1999 1998 1999 1998
Net sales $72,353 $63,985 $264,717 $247,371
Cost of sales 53,873 48,346 196,631 186,931
Gross profit 18,480 15,639 68,086 60,440
Selling, general
and administrative
expenses 8,745 8,185 33,796 32,496
Operating income 9,735 7,454 34,290 27,944
Other expense, net 52 170 388 411
Interest expense 859 943 3,478 4,164
Income before
income taxes 8,824 6,341 30,424 23,369
Income taxes 3,150 2,414 11,211 8,886
Net income $5,674 $3,927 $19,213 $14,483
Earnings per share:
Basic $ 0.80 $ 0.56 $ 2.70 $ 2.07
Diluted $ 0.74 $ 0.50 $ 2.47 $ 1.82
Weighted average
number of shares:
Basic 7,099 7,058 7,119 7,008
Diluted 7,662 7,874 7,770 7,963
STANLEY FURNITURE COMPANY, INC.
Condensed Balance Sheets
(In thousands)
December 31
1999 1998
Assets
Current assets:
Cash $3,597 $6,791
Accounts receivable, net 32,133 29,141
Inventories 43,580 46,514
Prepaid expenses
and other
current assets 1,011 903
Deferred income taxes 2,463 1,980
Total current assets 82,784 85,329
Property, plant,
and equipment, net 72,100 52,474
Goodwill 9,744 10,080
Other assets 5,894 6,491
Total assets $170,522 $154,374
Liabilities and
Stockholders' Equity
Current liabilities:
Current maturities
of long-term debt $5,236 $5,136
Account payable 25,836 21,837
Accrued expenses 13,181 13,948
Total current liabilities 44,253 40,921
Long-term debt 33,168 38,403
Deferred income taxes 11,072 10,694
Other long-term
liabilities 2,456 1,988
Stockholders' equity 79,573 62,368
Total liabilities
and stockholders'
equity $170,522 $154,374
SOURCE Stanley Furniture Company, Inc.
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Related links:
http://www.stanleyfurniture.com
Company News On-Call:
http://www.prnewswire.com/comp/117677.html or fax,
800-758-5804, ext. 117677
CONTACT:
Douglas I. Payne, Senior V.P. of Finance and
Administration, 540-627-2157 or dpayne@stanleyfurniture.com; or
Anita W. Wimmer, Assistant Secretary-Treasurer, 540-627-2446 or
awimmer@stanleyfurniture.com, both of Stanley Furniture Company,
Inc.
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