Stanley Furniture Company, Inc. (Nasdaq-NGS: STLY) today reported sales and operating results for 2010.
Net sales of $137.0 million decreased 14.6% compared to 2009. A net loss of $43.8 million ($4.11 per share) was incurred in 2010 compared to a net loss of $11.8 million ($1.14 per share) in 2009. The increased loss in 2010 resulted primarily from the near-term impact of actions taken in conjunction with the Company’s restructuring plans and lower sales.
Income of $1.6 million was recorded in 2010 from the receipt of funds under the Continued Dumping and Subsidy Offset Act of 2000 (CDSOA) involving wooden bedroom furniture imported from China and other related payments, net of legal expenses compared to $9.3 million in 2009.
Cash on hand was $25.5 million at December 31, 2010. Working capital, excluding cash and current maturities of long-term debt, decreased to $27.2 million at year-end 2010 compared to $46.9 million at December 31, 2009. The lower working capital is primarily due to reductions in inventories and accounts receivable in response to lower sales.Several special items in the fourth quarter of 2010 impacted the Company’s cash flows. These items included:
- receipt of $2.2 million from CDSOA payments in connection with the case involving wooden bedroom furniture imported from China,
- raising $12.0 million from the issuance of 4 million shares of its common stock in a rights offering,
- prepayment in full of the Company’s outstanding debt with Prudential Insurance Company of America and other lenders in the amount of $15 million,
- receipt of $2.3 million from the sale of machinery and equipment no longer needed as a result of ceasing production at the Stanleytown, Virginia facility, and
- receipt of $4.9 million from the sale of the Stanleytown, Virginia facility and Martinsville, Virginia facility.