STANLEYTOWN, Va., Oct. 12 /PRNewswire/ -- Stanley Furniture Company, Inc.
(Nasdaq: STLY) today reported record sales and earnings for the third quarter
of 1999, marking the seventeenth consecutive quarter for record earnings. Net
sales of $65.3 million increased 2.3% over the year ago quarter. After
reflecting the phase-out of upholstered products in the third quarter of 1998,
wood furniture shipments for the 1999 third quarter increased 4.1% over the
prior year quarter. Net income rose 34% to $5.0 million from $3.7 million in
the prior year quarter. Earnings per share on a diluted basis increased 39%
to $.64 from $.46 in the comparable year ago quarter.
For the first nine months of 1999, net sales of $192.4 million increased
4.9% over the comparable period. Excluding upholstery sales in the first nine
months of 1998, wood furniture shipments increased 7.6% in 1999. Net income
rose 28% to $13.5 million from $10.6 million in the prior year period.
Earnings per share on a diluted basis increased 32% to $1.74 from $1.32 in the
first nine months of 1998.
Operating income as a percent of net sales improved to 13.3% and 12.8% for
the three and nine month periods of 1999, respectively, compared to 11.2% for
both the prior year periods. The improvement continues due primarily to stable
raw material cost, improved operating efficiencies and the favorable impact
from the 1998 phase-out of upholstered products.
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 million to purchase
526,750 shares of its common stock at an average price of $18.97 per share.
As previously announced, the Company is in the process of spending
approximately $25 million to expand capacity to meet the growing demand for
its products. Approximately $10 million is being used to expand production
capability at existing facilities to add approximately $30-$35 million of
increased sales capacity on an annualized basis. This new capacity is
currently being phased in and will allow the Company to increase production
for its bedroom and Young America(TM) youth bedroom products. Approximately
$15 million is being used to purchase and equip a facility dedicated to the
production of home office furniture. This facility is expected to begin
operation early next year and should provide $50-$60 million of sales capacity
on an annualized basis when in full production in two to three years.
"Demand for our product continues to build, with orders up 10% in the
first nine months of 1999," commented Albert L. Prillaman, president and chief
executive officer of Stanley Furniture Company. "Capacity constraints
continued to limit our shipments during the third quarter. However, we are
beginning to phase in the new capacity at our existing facilities and, as a
result, anticipate increased shipments in the fourth quarter."
Established in 1924, Stanley Furniture Company, Inc. is celebrating its
75th Anniversary this year. The Company is a leading manufacturer of wood
furniture targeted at the upper-medium price range of the residential market.
Manufacturing facilities are located in Stanleytown, 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 construction or obtaining
necessary permits for planned expansions, and general economic conditions.
TABLE FOLLOWS
STANLEY FURNITURE COMPANY, INC.
(In thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
Sept 25, Sept 26, Sept 25, Sept 26,
Operating Results: 1999 1998 1999 1998
Net sales $65,319 $63,832 $192,364 $183,386
Cost of sales 48,203 48,449 142,758 138,585
Gross profit 17,116 15,383 49,606 44,801
Selling, general and
administrative
expenses 8,400 8,209 25,051 24,310
Operating income 8,716 7,174 24,555 20,491
Other expense, net 28 159 335 242
Interest expense 872 1,035 2,619 3,221
Income before income
taxes 7,816 5,980 21,601 17,028
Income taxes 2,859 2,274 8,061 6,472
Net income $4,957 $3,706 $13,540 $10,556
Earnings per share:
Basic $0.69 $0.52 $1.90 $1.51
Diluted $0.64 $0.46 $1.74 $1.32
Weighted average
number of shares:
Basic 7,141 7,144 7,125 7,005
Diluted 7,762 8,063 7,804 8,003
Financial Position at: September 25, September 26, December 31,
1999 1998 1998
Cash $3,295 $1,576 $6,791
Working capital 41,002 49,529 44,408
Total assets 163,849 152,670 154,374
Total debt 38,404 46,541 43,539
Stockholders' equity 73,865 61,938 62,368
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 e-mail:
dpayne@stanleyfurniture.com; or Anita Wimmer, Assistant
Secretary-Treasurer, 540-627-2446 or e-mail:
awimmer@stanleyfurniture.com; both of Stanley Furniture Company,
Inc.
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