STANLEYTOWN, Va., July 17 /PRNewswire/ -- Stanley Furniture Company, Inc.
(Nasdaq: STLY) announces record sales and earnings for the second quarter of
2000, marking the twentieth consecutive quarter of record earnings.
Net sales for the second quarter grew 13.8% to $72.1 million from $63.4
million in the year ago quarter. Net income rose 16.3% to $5.1 million from
$4.4 million in the prior year quarter. Earnings per share on a diluted basis
increased 19.6% to $.67 from $.56 in the comparable year ago quarter.
For the first half of 2000, net sales of $143.1 million increased 12.6%
from $127.0 million for the six months of 1999. Net income rose 18.4% to
$10.2 million from $8.6 million in the prior year period. Earnings per share
on a diluted basis increased 20.9% to $1.33 from $1.10 in the comparable 1999
period.
Operating income as a percent of net sales of 12.7% for the three and six
month periods of 2000 was about the same as the 1999 periods. Start-up costs
of the new factory dedicated to the production of home office furniture, which
began operation in the first quarter of 2000, were offset by lower selling,
general and administrative expenses as a percent of net sales and improved
operating efficiencies.
"We are extremely pleased with our performance during the first half of
2000, especially considering that we were starting up a new factory,"
commented Albert L. Prillaman, president and chief executive officer of
Stanley Furniture Company. "Our sales growth is being led by strong demand
for the Young America(TM) bedroom and home office product categories. We
believe the high growth potential in these categories will continue to provide
above industry sales growth. However, we have seen some softening in overall
demand and expect some moderation in sales growth in the second half of the
year, in part due to more difficult prior year comparisons."
"We also anticipate higher raw material cost, primarily lumber, in the
second half of 2000," Prillaman continued. "However, we have experienced
consistent improvement in operating performance at the new home office factory
and expect continued improvement for the remainder of the year."
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, and general economic conditions.
STANLEY FURNITURE COMPANY, INC.
Operating Results
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
July 1, June 26, July 1, June 26,
2000 1999 2000 1999
Net sales $72,118 $63,384 $143,091 $127,045
Cost of sales 54,310 46,940 107,933 94,555
Gross profit 17,808 16,444 35,158 32,490
Selling, general and
administrative
expenses 8,623 8,410 16,988 16,651
Operating income 9,185 8,034 18,170 15,839
Other expense
(income), net 9 129 (16) 306
Interest expense 994 875 1,926 1,748
Income before
income taxes 8,182 7,030 16,260 13,785
Income taxes 3,071 2,635 6,100 5,202
Net income $5,111 $4,395 $10,160 $8,583
Earnings per share:
Basic $.70 $.62 $1.41 $1.21
Diluted $.67 $.56 $1.33 $1.10
Weighted average
number of shares:
Basic 7,346 7,139 7,230 7,113
Diluted 7,643 7,829 7,624 7,823
STANLEY FURNITURE COMPANY, INC.
Condensed Balance Sheets
(in thousands)
(unaudited)
July 1, June 26, Dec. 31,
2000 1999 1999
Assets
Current assets:
Cash $ 1,323 $ 1,920 $ 3,597
Accounts receivable, net 35,998 33,546 32,133
Inventories 54,369 44,143 43,580
Prepaid expenses and
other current assets 1,525 1,009 1,011
Deferred income taxes 2,463 2,429 2,463
Total current assets 95,678 83,047 82,784
Property, plant, and
equipment, net 71,741 60,539 72,100
Goodwill 9,576 9,912 9,744
Other assets 5,503 6,263 5,894
Total assets $182,498 $159,761 $170,522
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of
long-term debt $ 5,286 $ 5,136 $ 5,236
Accounts payable 23,814 20,812 25,836
Accrued expenses 14,333 15,390 13,181
Total current liabilities 43,433 41,338 44,253
Long-term debt 37,882 34,968 33,168
Deferred income taxes 11,072 11,143 11,072
Other long-term liabilities 2,456 1,988 2,456
Stockholders' equity 87,655 70,324 79,573
Total liabilities and
stockholders' equity $182,498 $159,761 $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, Treasurer, 540-627-2446 or
awimmer@stanleyfurniture.com, both of Stanley Furniture Company,
Inc.
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