Furniture Brands International (FBN) announced financial results for the first quarter ended March 31, 2012.
- Net sales of $287.3 million in the first quarter of 2012, a decline of 3.6% compared to net sales of $297.9 million in the first quarter of 2011
- Operating income of $1.4 million as compared to an operating loss of $2.1 million in the first quarter of 2011
- Earnings per share of $0.01 as compared to a $0.06 loss per share in the prior year period.
Mr. Ralph Scozzafava, Chairman and CEO stated, "We were pleased to report an improvement in operating earnings this quarter as the cost and efficiency initiatives put in place are yielding the intended results. We are focused on driving sales by developing relevant product and values that resonate with customers, providing the highest level of service to our dealer partners and improving the performance of our company owned stores. We will do this while staying disciplined on the cost and capital allocation front in order to continue to improve profitability and deliver on our 2012 goal of generating positive free cash flow."
Net sales for the first quarter of 2012 were $287.3 million, a decline of 3.6% compared to net sales of $297.9 million in the first quarter of 2011. First quarter 2012 retail sales at the 64 company-owned stores and showrooms totaled $35.5 million compared with retail sales of $39.0 million at 65 company owned stores and showrooms in the prior year period. First quarter of 2012 same-store sales at the 44 Thomasville stores that the company has owned for more than 15 months were even with the first quarter of 2011, following a 17% increase in the prior year period.
Gross profit for the first quarter of 2012 was $71.4 million and gross margin was 24.9% compared to $77.5 million in gross profit and 26.0% gross margin in the prior year period. The decrease in first quarter 2012 gross margin was primarily due to new product rollout and clearance of older inventory, partially offset by a higher retail margin and lower expenses resulting from prior restructuring activities.
Selling, general and administrative expenses for the first quarter of 2012 totaled $70.0 million as compared to $79.6 million in the first quarter of 2011. This decrease was primarily due to lower expenses resulting from prior cost reduction activities, lower non-working marketing spend, and favorability on benefits expenses.
The Company had a pretax profit of $0.9 million in the first quarter of 2012 as compared to a pretax loss of $2.3 million in the prior year period.
For the first quarter of 2012, Furniture Brands reported a net profit of $0.4 million, or $0.01 per share compared to a net loss of $3.1 million, or $0.06 loss per share in the first quarter of 2011.
An increase in accounts receivable, resulting from increasing sales throughout the quarter, particularly in March, drove a sequential increase in working capital and the Company ended the quarter with a cash balance of $15.4 million and a debt balance of $77 million.
About Furniture Brands:
Furniture Brands International, Inc. is a world leader in designing, manufacturing, sourcing and retailing home furnishings. Furniture Brands markets products through a wide range of channels, including its own Thomasville retail stores and through interior designers, multi-line/independent retailers and mass merchant stores. Furniture Brands' portfolio includes some of the best known and most respected brands in the furniture industry, including Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and La Barge. To learn more, visit furniturebrands.com
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