The Rowe Companies Announces Refinancing Of Capital Lease Obligation
December 15 2003 - 8:00AM
PR Newswire (US)
The Rowe Companies Announces Refinancing Of Capital Lease
Obligation McLEAN, Va., Dec. 15 /PRNewswire-FirstCall/ -- The Rowe
Companies , a leading furniture manufacturer and retailer, today
reported that it has executed a modification to its existing
capital lease agreement with SunTrust Bank and Atlantic Financial.
The modification extends the term of the lease an additional five
years, reduces the balance by $1.3 million (to $13 million) and
amortizes the remaining principal balance over fifteen years.
"Effectively this completes the refinancing we began in 2002," said
Gerald Birnbach, Chairman and CEO of The Rowe Companies. "We have
reduced our debt significantly over the last eighteen months and
improved our balance sheet strength. This lease extension enables
us to reclassify over $12 million from current obligations to
long-term liabilities, and we are now able to concentrate all of
our resources to take advantage of the market opportunities we see
in the home furnishings industry." The Rowe Companies operates two
subsidiaries in the home furnishings industry: Rowe Furniture,
Inc., a major manufacturer of quality upholstered furniture serving
the middle and upper middle market throughout the U.S.; and
Storehouse, Inc. a multi-channel, lifestyle home furnishings
business including 61 retail home furnishing stores. Storehouse
makes good design accessible by selling an edited assortment of
casual, contemporary home furnishings through its stores located in
the Southeast, Southwest, and Mid- Atlantic markets and its
catalog. Statements in this press release concerning Rowe's
business outlook or future economic performance, anticipated
profitability, revenues, expenses or other financial items;
together with other statements that are not historical facts, are
"forward-looking statements" as that term is defined under Federal
Securities Laws. "Forward-looking statements" are subject to risks,
uncertainties and other factors which could cause actual results to
differ materially from those stated in such statements. Such risks,
uncertainties and factors include, but are not limited to, industry
cyclicality, fluctuations in customer demand and order patterns,
the seasonal nature of the business, changes in pricing, and
general economic conditions, as well as other risks detailed in
Rowe's filings with the Securities and Exchange Commission.
DATASOURCE: The Rowe Companies CONTACT: Gene S. Morphis, Chief
Financial Officer of The Rowe Companies, +1-703-847-8670 Web site:
http://www.rowefurniture.com/
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