-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DQb4XWUq0u6orPtXcWf4L1zaDYpMBsuManduvaVTwmGc0hiNW3Ks9kNFx5lwXLuH TLQ+k9VhtEaDs6C5JWQ0Yg== 0000797465-05-000052.txt : 20050719 0000797465-05-000052.hdr.sgml : 20050719 20050718185421 ACCESSION NUMBER: 0000797465-05-000052 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20050718 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050719 DATE AS OF CHANGE: 20050718 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STANLEY FURNITURE CO INC/ CENTRAL INDEX KEY: 0000797465 STANDARD INDUSTRIAL CLASSIFICATION: WOOD HOUSEHOLD FURNITURE, (NO UPHOLSTERED) [2511] IRS NUMBER: 541272589 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-14938 FILM NUMBER: 05960325 BUSINESS ADDRESS: STREET 1: 1641 FAIRYSTONE PK HWY CITY: STANLEYTOWN STATE: VA ZIP: 24168 BUSINESS PHONE: 5406272000 MAIL ADDRESS: STREET 1: 1641 FAIRYSTONE PARK HGWY CITY: STANLEYTOWN STATE: VA ZIP: 24168 FORMER COMPANY: FORMER CONFORMED NAME: STANLEY FURNITURE CO INC DATE OF NAME CHANGE: 19930908 FORMER COMPANY: FORMER CONFORMED NAME: STANLEY INTERIORS CORP DATE OF NAME CHANGE: 19920703 8-K 1 qtr2earningspressrelease2005.htm 2ND QTR 2005 8K EARNINGS PRESS RELEASE 2nd Qtr 2005 8K Earnings Press Release


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



FORM 8-K


CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) July 18, 2005


STANLEY FURNITURE COMPANY, INC.
(Exact name of registrant as specified in its charter)


Delaware
  
0-14938
  
54-1272589
(State or other jurisdiction of incorporation or organization)
  
(Commission File Number)
  
(I.R.S. Employer Identification No.)

1641 Fairystone Park Highway, Stanleytown, Virginia
  
24168
(Address of principal executive offices)
  
(Zip Code)


Registrant’s telephone number, including area code: (276) 627-2000


(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




ITEM 2.02. Results of Operations and Financial Condition


On July 18, 2005, the Registrant issued a press release (the “Press Release”) announcing second quarter 2005 operating results. The press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.


ITEM 9.01. Financial Statements and Exhibits


(c) Exhibits.

Exhibit 99.1 - Press release by Stanley Furniture Company, Inc. on July 18, 2005.








SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
STANLEY FURNITURE COMPANY, INC.
   
July 18, 2005
By: /s/Jeffrey R. Scheffer
Date
Jeffrey R. Scheffer
 
President and Chief Executive Officer









Exhibit 99.1

 
FOR IMMEDIATE RELEASE:
CONTACT:
DOUGLAS I. PAYNE
July 18, 2005 
  
Executive Vice President -
   
Finance and Administration
   
(276) 627-2157
   
e-mail:dpayne@stanleyfurniture.com
     
   
ANITA W. WIMMER
   
Vice President - Controller and
   
Treasurer
   
(276) 627-2446
   
e-mail:awimmer@stanleyfurniture.com


STANLEY FURNITURE ANNOUNCES RECORD
SALES AND EARNINGS FOR THE SECOND QUARTER OF 2005

Second quarter and first half sales increase 16%

STANLEYTOWN, VA, July 18, 2005/PRNewswire/ -- Stanley Furniture Company, Inc. (Nasdaq-NNM:STLY) today reported record sales and earnings for the second quarter of 2005. Both sales and earnings slightly exceeded the high end of management’s previous guidance provided in late April 2005.

Net sales of $83.6 million increased 15.8% and earnings per share grew 10.0% to $.44 from an exceptionally strong second quarter of last year. This marks the thirteenth consecutive quarter of sales growth over the comparable prior year quarter and the seventh consecutive quarter of double digit sales gains over the comparable prior year quarter.

For the first half of 2005, net sales of $166.6 million increased 15.9% over the comparable prior year period. Year-to-date earnings per share grew 14.5% to $.87 compared to $.76 in the first half of 2004.

Second quarter operating income rose to $9.4 million, or 11.2% of net sales. Operating income for the first half of 2005 increased to $18.8 million, or 11.3% of net sales, from $16.5 million, or 11.5% of net sales, in the year-ago first half. Operating margins have remained consistently strong, ranging from 11.1% to 11.3% of net sales, in each of the last four quarters. Higher raw material costs, compensation costs, energy costs, freight costs, increased warehouse expense and tariffs imposed on wooden bedroom furniture imported from China are negatively impacting operating income. Higher sales, increased production levels and operating efficiencies are helping to offset these higher costs.
 
Working capital, excluding cash and current maturities of long-term debt, decreased $2.1 million during the first half of 2005 to $83.1 million from $85.2 million at year end, primarily due to lower inventory levels. Strong cash flow in the first half of 2005 was used to purchase $10.0 million of the Company’s common stock, reduce debt $2.8 million, pay cash dividends of $1.6 million and increase the Company’s cash on hand $6.0 million. Approximately $10.2 million remains authorized by the Company’s Board of Directors to repurchase shares of the Company’s common stock. At July 2, 2005, the Company was in a net cash position with total debt outstanding of $12.9 million and cash on hand of $13.6 million.

Business Outlook

“We are pleased to report another quarter of significant progress,” commented Jeffrey R. Scheffer, chairman, president and chief executive officer. For the most recent four quarters our sales have increased 15.7% from the previous four quarter period. Blending efficient domestic manufacturing in our highly focused facilities with strategic outsourcing of certain component parts and finished goods has allowed us to improve the styling and value of our products. Combining this with our culture and reputation for high quality and fast delivery differentiates us from our competition. We enter the second half with considerable momentum and have raised our earnings guidance for 2005.”

Management offers the following guidance for total year 2005.

 
·
Net sales are expected to be in the range of $334 million to $340 million, an increase of 9% to 11% over the prior year.
 
·
Operating income is expected to be in the range of $38.1 million to $39.7 million.
 
·
The Company’s effective tax rate is expected to be in the range of 35.3% to 35.7% in 2005.
 
·
Earnings per share are expected to be in the range of $1.78 to $1.85 compared to $1.59 for 2004.

Management offers the following guidance for the quarter ending October 1, 2005.

 
·
Net sales are expected to be in the range of $82.5 million to $85.5 million, an increase of 5% to 9% over the third quarter of 2004.
 
·
Operating income is expected to be in the range of $9.3 million to $10.0 million.
 
·
Earnings per share are expected to be in the range of $.44 to $.47 compared to record earnings of $.40 per share in the year-ago quarter.

Other Information

All earnings per share amounts are on a diluted basis and adjusted for the two-for-one stock split distributed on June 6, 2005.

Established in 1924, Stanley Furniture Company, Inc. is a leading manufacturer of wood furniture targeted at the upper-medium price range of the residential market. Manufacturing facilities are located in Stanleytown and Martinsville, Va. and Robbinsville and Lexington, N.C. Its common stock is traded on the Nasdaq stock market under the symbol STLY.

Conference Call Details

The Company will host a conference call Tuesday morning, July 19, at 9:00 Eastern Time. The dial-in-number is (877) 407-8029. The call will also be web cast and archived on the Company’s web site at www.stanleyfurniture.com. The dial-in-number for the replay (available through July 26, 2005) is (877) 660-6853, the account reference number is 275 and the conference number is 160100.


Forward-Looking Statements

Certain statements made in this release are not based on historical facts, but are forward-looking statements. These statements can be identified by the use of forward-looking terminology such as “believes,”“estimates,”“expects,”“may,”“will,”“should,” or “anticipates” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy. These statements reflect the Company’s reasonable judgment with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include competition in the furniture industry including competition from lower-cost foreign manufacturers, the Company’s success in executing its blended strategy of combining offshore sourcing and domestic manufacturing, disruptions in offshore sourcing including those arising from supply or distribution disruptions or changes in political or economic conditions affecting the countries from which the Company obtains offshore sourcing, international trade policies of the United States and countries from which the Company obtains offshore sourcing, the cyclical nature of the furniture industry, fluctuations in the price for lumber which is the most significant raw material used by the Company, fluctuations in foreign freight cost, credit exposure to customers, capital costs and general economic conditions. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.



TABLES FOLLOW






STANLEY FURNITURE COMPANY, INC.
Consolidated Operating Results
(in thousands, except per share data)
(unaudited)


   
Three Months Ended
  
Six Months Ended
  
   
July 2,
  
June 26,
  
July 2,
  
June 26,
  
   
2005
 
2004
 
2005
 
2004
 
                   
Net sales
  
$
83,635
  
$
72,223
  
$
166,585
  
$
143,743
  
                           
Cost of sales
    
63,003
   
53,977
   
125,488
   
108,276
 
                           
Gross profit
    
20,632
   
18,246
   
41,097
   
35,467
 
                           
Selling, general and administrative expenses
    
11,239
    
9,539
   
22,290
   
18,956
 
                           
Operating income
    
9,393
   
8,707
   
18,807
   
16,511
 
                           
Other income, net
    
54
    
42
    
119
    
95
  
Interest Income
    
102
    
10
   
154
    
16
  
Interest expense
    
545
   
587
   
1,115
    
1,219
 
Income before income taxes
    
9,004
   
8,172
   
17,965
   
15,403
 
                           
Income taxes
    
3,177
   
2,961
   
6,378
   
5,585
 
Net income
  
$
5,827
  
$
5,211
  
$
11,587
  
$
9,818
  
                           
Diluted earnings per share
  
$
0.44
  
$
0.40
  
$
0.87
  
$
0.76
  
                           
Weighted average number of shares
    
13,255
   
13,031
   
13,316
   
12,970
 



STANLEY FURNITURE COMPANY, INC.
Consolidated Condensed Balance Sheets
(in thousands)
(unaudited)

   
July 2,
 
June 26,
 
Dec 31,
 
   
2005
  
2004
  
2004
  
               
Assets
              
Current assets:
              
Cash
 
$
13,586
  
$
3,922
  
$
7,632
  
Accounts receivable, net
    
39,132
   
34,723
   
36,036
 
Inventories
    
72,283
   
68,440
   
73,658
 
Prepaid expenses and other current assets
    
1,745
   
1,426
   
1,585
 
Deferred income taxes
    
2,404
   
2,927
   
2,414
 
                     
Total current assets
    
129,150
   
111,438
   
121,325
 
                     
Property, plant, and equipment, net
    
51,290
   
52,574
   
51,342
 
Goodwill
    
9,072
   
9,072
   
9,072
 
Other assets
    
6,560
   
6,565
   
7,149
 
                     
Total assets
  
$
196,072
  
$
179,649
  
$
188,888
  
                     
Liabilities and Stockholders' Equity
                    
Current liabilities:
                    
Current maturities of long-term debt
  
$
2,857
  
$
4,157
  
$
4,257
  
Accounts payable
    
19,549
   
16,829
   
16,056
 
Accrued expenses
    
12,936
   
15,332
   
12,445
 
                     
Total current liabilities
    
35,342
   
36,318
   
32,758
 
                     
Long-term debt
    
10,000
   
14,257
   
11,428
 
Deferred income taxes
    
10,218
   
11,063
   
10,742
 
Other long-term liabilities
    
6,619
   
5,909
   
6,695
 
                     
Stockholders' equity
    
133,893
   
112,102
   
127,265
 
                     
Total liabilities and stockholders' equity
  
$
196,072
  
$
179,649
  
$
188,888
  




STANLEY FURNITURE COMPANY, INC.
Consolidated Condensed Statements of Cash Flows
(in thousands)
(unaudited)

   
Six Months Ended
  
   
July 2,
  
June 26,
  
   
2005
  
2004
  
Cash flows from operating activities:
          
Cash received from customers
  
$
163,434
  
$
139,410
  
Cash paid to suppliers and employees
    
(138,696
)
  
(128,046
)
Interest paid, net
    
(1,519
)
  
(715
)
Income taxes paid, net
    
(6,350
)
  
(4,067
)
Net cash provided by operating activities
    
16,869
   
6,582
 
               
Cash flows from investing activities:
              
Capital expenditures
    
(2,721
)
  
(200
)
Purchase of other assets
    
(33
)
  
(88
)
Net cash used by investing activities
    
(2,754
)
  
(288
)
               
Cash flows from financing activities:
              
Repayment of senior notes
    
(2,828
)
  
(4,286
)
Purchase and retirement of common stock
    
(9,993
)
  
-
 
Dividends paid
    
(1,560
)
  
(1,246
)
Proceeds from insurance policy loans
    
1,110
    
-
 
Proceeds from exercise of stock options
    
5,110
   
651
 
Net cash used by financing activities
    
(8,161
)
  
(4,881
)
               
Net increase in cash
    
5,954
   
1,413
 
Cash at beginning of period
    
7,632
   
2,509
 
               
Cash at end of period
  
$
13,586
  
$
3,922
  
               
Reconciliation of net income to net cash provided by operating activities:
              
Net income
  
$
11,587
  
$
9,818
  
               
               
Adjustments to reconcile net income to net cash provided by operating activities:
              
Depreciation and amortization
    
2,815
   
2,830
 
Deferred income taxes
    
(514
)
  
(1,569
)
Changes in working capital
    
3,424
    
(6,020
)
Other assets
    
(367
)
  
491
 
Other long-term liabilities
    
(76
)
  
1,032
 
Net cash provided by operating activities
  
$
16,869
  
$
6,582
  

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