Furniture Brands International Reports Second Quarter 2012 Financial Results
Furniture Industry News Update -
Furniture World Magazine
Furniture Brands International (FBN) announced financial results for the second quarter ended June 30, 2012.
Mr. Ralph Scozzafava, Chairman and CEO, stated, "We continue to make progress with our ongoing cost and efficiency efforts. Our ability to deliver second quarter operating results that were flat to the prior year period despite the decreased sales volume is a result of these efforts. As we continue to improve our efficiency, we are also focused on driving sales through new product offerings that are updated, relevant and offer value to the customer. We are seeing broader acceptance of this newer product, which has contributed to our increased order backlog at the end of the quarter. We also remain disciplined on the capital allocation front as we work towards our goal of improving our operating results and generating positive free cash flow in 2012."
- Net sales of $265.5 million, down 10.4% as compared to the second quarter of 2011
- Gross margin of 24.1% versus 24.8% in the second quarter of 2011
- Operating loss of $5.8 million, flat compared to the second quarter of 2011
Net sales for the second quarter of 2012 were $265.5 million, a decline of 10.4% compared to net sales of $296.2 million in the second quarter of 2011. Second quarter 2012 retail sales at the 48 Thomasville company-owned stores totaled $25.6 million compared with sales of $26.9 million at 48 company- owned stores in the prior year period. Second quarter same-store sales at the 44 Thomasville stores that the company has owned for more than 15 months, were down 7.4% compared to the second quarter of 2011 following an 8.0% increase in the prior year period.
Gross profit for the second quarter of 2012 was $64.0 million and gross margin was 24.1%, compared to $73.4 million in gross profit and 24.8% gross margin in the prior year period. The decrease in second quarter 2012 gross margin was primarily due to additional clearance of older inventory and product that is being replaced, decreased retail margin, and lower plant utilization, partially offset by lower costs resulting from prior cost reduction activities.
Selling, general and administrative expenses for the second quarter of 2012 totaled $69.8 million as compared to $79.3 million in the second quarter of 2011. This decrease was primarily due to lower expenses resulting from prior cost reduction activities.
The Company had an operating loss of $5.8 million in the second quarter of 2012 as compared to an operating loss of $5.8 million in the prior year period.
For the second quarter of 2012, Furniture Brands reported a net loss of $6.8 million, or $0.12 per share compared to a net loss of $6.6 million, or $0.12 per share in the second quarter of 2011.
The Company ended the quarter with a cash balance of $19.1 million and a debt balance of $77 million.
About Furniture Brands: Furniture Brands International, Inc. (FBN) 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, La Barge, and Creative Interiors. To learn more about the company, visit: furniturebrands.com.
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