Furniture Brands International Reports 2010 Second Quarter Financial Results

• Net sales of $289 million, up slightly from the second quarter of 2009
• Net income of $4.2 million compared to a loss of $16 million in second quarter of 2009
• Gross margin of 25.7% compared to 21.4% in second quarter of 2009
• Net cash* position of $26 million

ST. LOUIS, Aug. 4, 2010 (GLOBE NEWSWIRE) -- Furniture Brands International (NYSE:FBN) announced today its financial results for the second quarter and six months ended June 30, 2010.

Net sales for the 2010 second quarter were $289.5 million compared to net sales of $288.3 million in the second quarter of 2009. Net sales for the second quarter of 2010 reflect a net decrease of $12 million from the 2009 quarter in the company's ready-to-assemble business as a result of the company exiting two unprofitable lines of business. For the 2010 second quarter, Furniture Brands reported net income of $4.2 million, or $0.09 per diluted share, compared to a loss of $16 million, or $0.33 per diluted share, in the second quarter of 2009. Gross margin for the second quarter of 2010 was 25.7% compared to 21.4% in the second quarter of 2009.

For the six months ended June 30, 2010, the company reported net sales of $611.9 million and net income of $7.7 million, or $0.16 per diluted share, compared to net sales of $645.1 million and a net loss of $20.2 million, or $0.42 per diluted share, for the six months ended June 30, 2009. Results for all periods include selected items that are detailed in a table attached to this press release. 

At June 30, 2010, the company had a net cash* position of $26 million compared to net debt* of $52 million at June 30, 2009. The company also anticipates receiving an approximately $7 million federal tax refund during the fourth quarter of 2010. The refund is primarily the result of contributions of common stock to the company's pension plan during the second quarter of 2010 which allowed the company to utilize remaining tax loss carry back capacity from previous tax years and record a related net tax benefit of approximately $4.8 million in the quarter.