Chromcraft Revington, Inc. (NYSE Amex: CRC) today reported its
results for the first quarter of 2012. Sales for the first quarter
of 2012 were $13.9 million or 11.3% higher than the same period
last year. The net loss for the first quarter of 2012 was $746,000,
which was 58.6% lower than the loss in the same period in 2011.
The increase in sales for the first quarter of 2012 as compared
to the prior year period was primarily due to increased shipments
of commercial seating products. Residential furniture shipments in
the first quarter of 2012 were slightly higher than the first
quarter of 2011 primarily due to sales of new bedroom groups which
began shipping in the second quarter of 2011. Incoming orders for
commercial products reflected a slowdown from the second half of
2011 which we believe is temporary, particularly with the
initiatives we have taken in this division, including the recent
acquisition of Executive Office Concepts, Inc. (“EOC”) in late
March 2012. We continue to face the challenges resulting from weak
consumer demand for residential furniture in our product categories
and price segment, which we believe is consistent with industry
trends; the continuing economic difficulties which reflect the
ongoing labor and housing market struggles and high consumer debt
levels.
In addition to the positive impact of the sales increase on
reducing the net loss for the first quarter of 2012, a favorable
product sales mix and lower unabsorbed fixed manufacturing costs
contributed to an increase in gross margin of $1.2 million in the
first quarter of 2012 over the prior year period. Selling, general
and administrative expenses for the first quarter of 2012 were
comparable to the prior year period.
Cash provided by operating activities in the first quarter of
2012 was $1.1 million as compared to $0.4 million used in the prior
year period. The improved cash flow was primarily due to a lower
operating loss and an increase in cash from net working capital.
The $1.1 million generated from operating activities in the first
quarter of 2012 was primarily used for net debt repayments on our
revolving credit facility of $0.9 million and the purchase of EOC
in March. There was no outstanding balance on the revolving credit
facility at March 31, 2012.
Commenting on these results, Ronald H. Butler, Chairman and
Chief Executive Officer, said “Despite the continuing difficult
retail operating environment, we increased sales by 11% in the
first quarter of 2012 as compared to the prior year period largely
due to increased sales of our commercial seating products to
government agencies, higher education institutions and the health
care industry. The increased sales, along with a favorable product
sales mix and lower unabsorbed fixed manufacturing costs led to
over a 70% increase in gross margin in the first quarter of 2012
compared to the first quarter of 2011, while holding the line on
selling, general and administrative expenses. The ongoing difficult
operating environment in the residential furniture market will
continue to be challenging in 2012.
“We believe our recent acquisition of California-based EOC, with
its commercial product lines, especially an extensive health care
line, complement our current product line of seating, tables, and
waiting area furniture. In addition, the three year contract we
were awarded late in 2011 with the Premier healthcare alliance is
expected to boost our sales in this product line. The health care
sector continues to grow significantly and we believe this alliance
continues to position the commercial line of our Chromcraft
division favorably for the future. In these uncertain economic
times, we have diligently focused on our cash flow and balance
sheet management along with controlling operating costs to be in
line with our revenue base.”
Mr. Butler continued, “We also believe the new $5 million credit
facility we entered into with Gibraltar Business Capital, LLC on
April 20, 2012 provides us with the flexibility and borrowing
capacity we need to meet our anticipated cash operating needs.”
Chromcraft Revington® businesses design, manufacture and import
residential and commercial furniture marketed primarily in the U.S.
The Company wholesales its residential furniture products under
Chromcraft®, Cochrane®, Peters-Revington®, Southern Living®, and CR
Kids & Beyond® primary brands. It sells commercial furniture
under the Chromcraft® and Executive Office Concepts brands. The
Company sources furniture from overseas suppliers, with domestic
contract specialty facilities, and operates a U.S. manufacturing
facility for its commercial furniture and motion based casual
dining furniture in Mississippi and a manufacturing facility for
office suites and other commercial furniture lines in
California.
Certain information and statements contained in this news
release are forward-looking statements. These forward-looking
statements can be generally identified as such because they include
future tense or dates, are not historical or current facts, or
include words such as “believe,” “may,” “expect,” “intend,” “plan,”
“anticipate,” or words of similar import. Forward-looking
statements express management’s current expectations or forecasts
of future events or outcomes, but are not guarantees of performance
or outcomes and are subject to certain risks and uncertainties that
could cause actual results or outcomes to differ materially from
those in such statements.
Among such risks and uncertainties that could cause actual
results or outcomes to differ materially from those identified in
the forward-looking statements are the impact of the current
economic difficulties in the United States and elsewhere; import
and domestic competition in the furniture industry; our ability to
execute our business strategies; our ability to grow sales and
reduce expenses to eliminate our operating losses; continuation of
the recent slowdown in the U.S. office furniture market; our
ability to sell the right product mix; our inability to raise
prices in response to increasing costs; our ability to anticipate
or respond to changes in the tastes or needs of our end users in a
timely manner; supply disruptions with products manufactured in
China, Vietnam and other Asian countries; continued credit
availability under the Company’s credit facility; market interest
rates; consumer confidence levels; cyclical nature of the furniture
industry; consumer and business spending; changes in relationships
with customers; customer acceptance of existing and new products;
new home and existing home sales; financial viability of our
customers and their ability to continue or increase product orders;
loss of key management; other factors that generally affect
business; and certain risks set forth in the Company’s annual
report on Form 10-K for the year ended December 31, 2011.
The Company does not undertake any obligation to update or
revise publicly any forward-looking statements to reflect
information, events or circumstances after the date of such
statements or to reflect the occurrence of anticipated or
unanticipated events or circumstances.
Condensed Consolidated Statements of Operations (unaudited)
Chromcraft Revington, Inc. (In thousands, except per share data)
Three Months Ended March 31, April 2, 2012 2011
Sales $ 13,887 $ 12,480 Cost of sales 11,034
10,820 Gross margin 2,853 1,660
Selling, general and administrative expenses 3,505
3,388 Operating loss (652 ) (1,728 )
Interest expense (94 ) (76 ) Net loss $ (746 )
$ (1,804 ) Basic and diluted loss per share of common stock
$ (.15 ) $ (.38 ) Shares used in computing basic and diluted
loss per share 4,842 4,737 Condensed Consolidated Balance
Sheets (unaudited) Chromcraft Revington, Inc. (In thousands)
March 31, December 31, 2012 2011
Assets
Accounts receivable, less allowance of $165 in 2012 and $150
in 2011 $ 7,252 $ 8,581 Inventories 13,054 14,194 Prepaid expenses
and other 893 745 Current assets 21,199 23,520
Property, plant and equipment, net 6,663 6,483 Other assets
1,074 819 Total assets $ 28,936 $ 30,822
Liabilities and Stockholders' Equity Revolving credit
facility $ - $ 901 Current maturity of note payable 98 - Accounts
payable 3,301 3,955 Accrued liabilities 3,719 3,699
Current liabilities 7,118 8,555 Note payable 211 - Deferred
compensation 293 327 Other long-term liabilities 1,084
1,075 Total liabilities 8,706 9,957 Stockholders'
equity 20,230 20,865 Total liabilities and
stockholders' equity $ 28,936 $ 30,822 Condensed
Consolidated Statements of Cash Flows (unaudited) Chromcraft
Revington, Inc. (In thousands)
Three Months Ended March 31, April 2, 2012 2011
Operating Activities Net loss $ (746 ) $ (1,804 )
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization expense 166 212 Non-cash share based
and ESOP compensation expense 111 47 Provision for doubtful
accounts 17 - Amortization of deferred financing costs 19 13
Non-cash inventory write-downs - 55 Non-cash accretion expense 9 9
Changes in operating assets and
liabilities, net of effect of acquired business
Accounts receivable 1,493 1,610 Inventories 1,478 1,631 Prepaid
expenses and other (73 ) (103 ) Accounts payable and accrued
liabilities (1,322 ) (1,964 ) Long-term liabilities and assets
(70 ) (85 )
Cash provided by (used in) operating
activities 1,082 (379 )
Investing Activities Capital expenditures (31 ) (13 )
Acquisition of business, net of cash acquired (138 )
-
Cash used in investing activities (169 )
(13 )
Financing Activities Deferred financing
cost (12 ) - Net repayments on revolving credit facility
(901 ) -
Cash used in financing activities
(913 ) -
Change in cash - (392 )
Cash at beginning of the period -
4,179
Cash at end of the period $ -
$ 3,787
Supplemental Disclosure of Non-Cash
Investing Activities Acquisition of a business:
Assets acquired and liabilities assumed: Working capital $ (32 )
Property, plant and equipment 315 Intangible assets 226
509 Less: cash acquired (62 ) Less: note due to seller
(309 ) $ 138
Chromcraft Revington (AMEX:CRC)
Gráfico Histórico do Ativo
De Set 2024 até Out 2024
Chromcraft Revington (AMEX:CRC)
Gráfico Histórico do Ativo
De Out 2023 até Out 2024