Third Quarter Sales Rise 9.4%;
Earnings Per Share Increase 6.3%
STANLEYTOWN, Va., Oct. 17 /PRNewswire/ --
Stanley Furniture Company, Inc. (Nasdaq: STLY) announces record sales and
earnings for the third quarter of 2000, marking the twenty-first consecutive
quarter of record earnings.
Net sales for the third quarter grew 9.4% to $71.4 million from
$65.3 million in the year ago quarter. Net income rose 2.2% to $5.1 million
from $5.0 million in the prior year quarter. Earnings per share on a diluted
basis increased 6.3% to $.68 from $.64 in the comparable year ago quarter.
For the first three quarters of 2000, net sales of $214.5 million
increased 11.5% from $192.4 million for the nine months of 1999. Net income
rose 12.5% to $15.2 million from $13.5 million in the prior year period.
Earnings per share on a diluted basis increased 16.1% to $2.02 from $1.74 in
the comparable 1999 period.
Operating income as a percent of net sales was 12.7% for both the third
quarter and first nine months of 2000, compared to 13.3% in the comparable
prior year quarter and 12.8% for the prior year nine-month period.
Contributing to lower operating margins has been the start-up costs associated
with the new factory which began production of home office furniture in March
2000. Also, higher raw material cost, primarily lumber, and increased labor
costs have negatively impacted operating results. Lower S,G&A expenses as a
percent of net sales and improved operating efficiencies have helped to offset
these cost increases.
"Our sales growth continues to be led by strong demand for the Young
America(TM) bedroom and home office product categories," commented Albert L.
Prillaman, president and chief executive officer of Stanley Furniture Company.
"However, we have recently seen some softening in overall demand and expect
slower sales growth in the fourth quarter and into next year. We believe the
high growth potential in our Young America(TM) bedroom and home office
categories will continue to provide above industry sales growth."
In August 2000, continuing the Company's financial strategy of using a
portion of the Company's capital to repurchase its shares, the Company's Board
of Directors increased the authorization to repurchase shares of its common
stock an additional $10.0 million. The current available authorization is
$6.9 million. Over the past two years, the Company has utilized $23.1 million
to purchase a total of 1,091,150 shares of its common stock at an average
price of $21.16 per share.
The Company will hold a conference call today at 10:00 a.m. EDT to review
third quarter results. The dial-in-number is
(913) 981-5508.
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 Nine Months Ended
Sept 30, Sept 25, Sept 30, Sept 25,
2000 1999 2000 1999
Net sales $71,440 $65,319 $214,531 $192,364
Cost of sales 53,948 48,203 161,881 142,758
Gross profit 17,492 17,116 52,650 49,606
Selling, general
and administrative
expenses 8,429 8,400 25,417 25,051
Operating income 9,063 8,716 27,233 24,555
Other expense
(income), net (38) 28 (55) 335
Interest expense 999 872 2,925 2,619
Income before
income taxes 8,102 7,816 24,363 21,601
Income taxes 3,037 2,859 9,137 8,061
Net income $5,065 $4,957 $15,226 $13,540
Earnings per share:
Basic $0.71 $0.69 $2.12 $1.90
Diluted $0.68 $0.64 $2.02 $1.74
Weighted average number of shares:
Basic 7,130 7,141 7,178 7,125
Diluted 7,434 7,762 7,549 7,804
STANLEY FURNITURE COMPANY, INC.
Condensed Balance Sheets
(In thousands)
(unaudited)
Sept. 30, Sept. 25, Dec. 31,
2000 1999 1999
Assets
Current assets:
Cash $ 2,265 $ 3,295 $ 3,597
Accounts receivable, net 38,213 35,262 32,133
Inventories 53,006 42,271 43,580
Prepaid expenses
and other current assets 1,638 1,023 1,011
Deferred income taxes 2,463 2,429 2,463
Total current assets 97,585 84,280 82,784
Property, plant,
and equipment, net 71,357 63,651 72,100
Goodwill 9,492 9,828 9,744
Other assets 5,341 6,090 5,894
Total assets $183,775 $163,849 $170,522
Liabilities and
Stockholders' Equity
Current liabilities:
Current maturities
of long-term debt $ 5,286 $ 5,236 $ 5,236
Accounts payable 22,580 23,061 25,836
Accrued expenses 15,524 14,981 13,181
Total current liabilities 43,390 43,278 44,253
Long-term debt 44,882 33,168 33,168
Deferred income taxes 11,072 11,550 11,072
Other long-term liabilities 2,456 1,988 2,456
Stockholders' equity 81,975 73,865 79,573
Total liabilities
and stockholders' equity $183,775 $163,849 $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
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