The Rowe Companies Announces First Quarter Operating Results MCLEAN, Va., March 16 /PRNewswire-FirstCall/ -- The Rowe Companies , a leading furniture manufacturer and home furnishings retailer, today reported operating results for the first quarter ended February 29, 2004. Led by a 24% sales increase in its Storehouse retail unit, net earnings from continuing operations for the first quarter totaled $149,000 or $0.01 per diluted share, compared to a loss in the prior year first quarter of $(813,000), or $(0.06) per diluted share. Net shipments increased 11% to $70.7 million, compared with $63.7 million for the same period last year. Gross profit increased to 35.5% of net shipments compared with 35.1% of net shipments for the same period last year as retail margins improved. As previously announced, included in cost of shipments was an after-tax non-cash charge of $(451,000) or $(0.03) per share to depreciate certain legacy systems that will be removed from service this year as the Company'snew ERP system is implemented. Sales and administrative costs for the quarter were $24.2 million compared to $22.7 million in the prior year quarter, principally due to higher retail selling expense associated with higher volume and increased store occupancy expense. During the quarter the Company recorded an increase in workers' compensation expense for a prior year of $(218,000) after tax, a portion of which was attributable to business units that have subsequently been sold, but for which the Company retained the workers' compensation liability. Accordingly, $(105,000) after tax, or $(0.01) per share was attributed to discontinued operations. Net earnings for first quarter of 2003 including discontinued operations were $44,000 or $0.00 per share, compared to $2,000 or $0.00 per share in 2003. Net earnings for the prior year included the results of the Mitchell Gold Co., which was sold in April 2003. "We are pleased with the continuing improvement in our operating results," said Gerald M. Birnbach, Chairman and President. "Our Storehouse retail business continues to show strong sales growth, with an 18.8% same store sales increase for the third consecutive quarter of double digit same store sales gains. Total sales gained 23.9% for the quarter. Our Rowe Furniture shipments increased 1% in this quarter, despite two less production days in its operating calendar compared to last year." In addition to the non-cash charge in the first quarter resulting from the accelerated depreciation of certain legacy systems, there will be an additional non-cash charge of $(148,000) after tax or $(0.01) per share for the second quarter of fiscal 2004. 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 furnishings 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. THE ROWE COMPANIES AND WHOLLY-OWNED SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED FEBRUARY 29, 2004 AND MARCH 2, 2003 UNAUDITED Three Months Ended February 29, March 2, 2004 2003 (in thousands - except per share amounts) Net shipments $70,746 $63,719 Cost of shipments 45,644 41,376 Gross profit 25,102 22,343 Selling and administrative expenses 24,224 22,684 Operating income (loss) 878 (341) Interest expense (894) (1,336) Other income 347 395 Earnings (loss) from continuing operations before taxes 331 (1,282) Tax expense (benefit) 182 (469) Net earnings (loss) from continuing operations 149 (813) Earnings (loss) from discontinued operations, net of tax expense (benefit) of $(65) and $499, respectively (105) 815 Net earnings $44 $2 Net earnings (loss) from continuing operations per common share $0.01 $(0.06) Net earnings per common share $0.00 $0.00 Weighted average common shares 13,176 13,165 Net earnings (loss) from continuing operations per common share assuming dilution $0.01 $(0.06) Net earnings per common share assuming dilution $0.00 $0.00 Weighted average common shares and equivalents 13,476 13,212 THE ROWE COMPANIES AND WHOLLY-OWNED SUBSIDIARIES CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED FEBRUARY 29, 2004 AND MARCH 2, 2003 UNAUDITED February 29, November 30, 2004 2003 (Unaudited) (Audited) ($ in thousands) ASSETS CURRENT ASSETS Cash and cash equivalents $1,360 $3,708 Restricted cash collateralizing letters of credit 3,674 3,674 Accounts receivable, net 20,920 19,889 Notes receivable 100 100 Inventories 33,105 32,387 Deferred income tax asset 869 880 Prepaid expenses and other 3,543 2,711 Total current assets 63,571 63,349 PROPERTY AND EQUIPMENT, net 40,459 41,624 GOODWILL, net 14,224 14,224 OTHER NONCURRENT ASSETS 11,153 10,871 $129,407 $130,068 LIABILITIES CURRENT LIABILITIES Current maturities of long-term debt $2,011 $3,314 Accounts payable and accrued liabilities 20,437 21,683 Income taxes payable 1,065 1,061 Customer deposits 12,896 13,512 Total current liabilities 36,409 39,570 LONG-TERM DEBT 36,721 34,312 DEFERRED LIABILITIES 4,257 4,269 Total liabilities 77,387 78,151 Total stockholders' equity 52,020 51,917 $129,407 $130,068 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/

Copyright

Rowe (AMEX:ROW)
Historical Stock Chart
From Oct 2024 to Oct 2024 Click Here for more Rowe Charts.
Rowe (AMEX:ROW)
Historical Stock Chart
From Oct 2023 to Oct 2024 Click Here for more Rowe Charts.