STANLEYTOWN, Va., April 18 /PRNewswire/ -- Stanley Furniture Company, Inc.
(Nasdaq: STLY) today reported record sales and earnings for the first quarter
of 2000, marking the nineteenth consecutive quarter for record earnings. Net
sales of $71.0 million increased 11.5% over the year ago quarter. Net income
rose 20.6% to $5.0 million from $4.2 million in the prior year quarter.
Earnings per share on a diluted basis increased 22.2% to $.66 from $.54 in the
comparable year ago quarter.
Operating income as a percent of net sales improved to 12.7% for the first
quarter of 2000 up from 12.3% in the prior year quarter. Lower selling,
general and administrative expenses as a percent of net sales, improved
operating efficiencies and stable raw material cost increased the Company's
operating margin. These improvements were partially offset by start-up
expenses at the new factory dedicated to the production of home office
furniture, which began operations in the first quarter of 2000.
"We are very pleased with our first quarter performance, especially
considering that we were starting up a new factory and lost production due to
inclement weather in January," commented Albert L. Prillaman, president and
chief executive officer of Stanley Furniture Company. "We continue to
experience strong demand for our products including excellent results at the
recently completed International Home Furnishings Market in High Point, NC.
We believe the high growth potential in our Young America(TM) bedroom and home
office product categories will allow us to continue to outpace industry sales
growth."
The Company is continuing its share repurchase program, purchasing
approximately 112,000 shares of its stock on the open market at an average
price of $17.875, during the first quarter. Since October 1998, the Company
has utilized $12.3 million, of the $20 million authorization, to purchase a
total of 653,750 shares of its common stock at an average price of $18.758 per
share.
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.
TABLE FOLLOWS
STANLEY FURNITURE COMPANY, INC.
Operating Results
(In thousands, except per share data)
Three Months Ended
April 1, March 27,
2000 1999
Net sales $70,973 $63,661
Cost of sales 53,623 47,615
Gross profit 17,350 16,046
Selling, general and administrative expenses 8,365 8,241
Operating income 8,985 7,805
Other expense (income), net (25) 177
Interest expense 932 873
Income before income taxes 8,078 6,755
Income taxes 3,029 2,567
Net income $ 5,049 $ 4,188
Earnings per share:
Basic $ .71 $ .59
Diluted $ .66 $ .54
Weighted average number of shares:
Basic 7,142 7,089
Diluted 7,597 7,816
STANLEY FURNITURE COMPANY, INC.
Condensed Balance Sheets
(In thousands)
April 1, March 27, Dec. 31,
2000 1999 1999
Assets
Current assets:
Cash $ 1,368 $ 2,819 $ 3,597
Accounts receivable, net 38,521 34,258 32,133
Inventories 48,724 46,171 43,580
Prepaid expenses and
other current assets 595 865 1,011
Deferred income taxes 2,463 2,429 2,463
Total current assets 91,671 86,542 82,784
Property, plant, and
equipment, net 72,490 53,253 72,100
Goodwill 9,660 9,996 9,744
Other assets 5,583 6,427 5,894
Total assets $179,404 $156,218 $170,522
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of
long-term debt $ 5,236 $ 5,136 $ 5,236
Accounts payable 23,452 20,451 25,836
Accrued expenses 15,712 16,548 13,181
Total current liabilities 44,400 42,135 44,253
Long-term debt 39,218 34,118 33,168
Deferred income taxes 11,072 11,143 11,072
Other long-term liabilities 2,456 1,988 2,456
Stockholders' equity 82,258 66,834 79,573
Total liabilities and
stockholders' equity $179,404 $156,218 $170,522
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, Sr. V.P., 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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