Chromcraft Revington, Inc. Reports Fourth Quarter And Full Year Results
Chromcraft Revington, Inc. (NYSE Amex: CRC) today reported improved results for the year 2010 compared to 2009, excluding an income tax benefit in 2009 of $6,578,000. The loss before income tax benefit was $6,944,000 for 2010 and $8,501,000 for 2009. Sales for 2010 were $56,269,000 as compared to sales of $62,687,000 for the prior year. The improved operating results for the year 2010 compared to 2009 reflected our transition to a more variable cost global sourcing model, lower inventory write-downs, favorable product sales mix, and lower selling, general and administrative expenses, partially offset by the effect of lower shipments in 2010. For the fourth quarter of 2010, sales were $14,546,000 and the net loss was $2,688,000 as compared to sales of $15,406,000 and a net loss of $1,906,000, excluding the income tax benefit of $6,578,000 for the same period in 2009.
Commercial furniture shipments were higher in the quarter and year ended December 31, 2010 as compared to the prior year periods primarily due to an increase in shipments of seating products to government agencies, higher education institutions, and the health care industry.
Residential furniture shipments in 2010 were lower in the quarter and year ended December 31, 2010 as compared to the prior year periods primarily due to weakness in consumer demand for residential products, which we believe is consistent with industry trends, and the continuing economic downturn. Sales for the year ended December 31, 2010 were also lower due to the reduction of slow moving and unprofitable products in 2009.
Operating results in the fourth quarter of 2010 were negatively impacted by reduced orders compared to the same period in 2009 which resulted in a lower number of units shipped, and material cost increases on certain products resulting from delays in receiving parts from overseas suppliers. The lower sales volume in 2010 compared to 2009 also unfavorably impacted fixed cost overhead absorption and the efficiency of manufacturing operations. In addition, selling, general and administrative expenses in the fourth quarter of 2010 included a write-off of the remaining $350,000 of construction in progress related to an uncompleted information technology project begun before the current economic downturn. Selling, general and administrative expenses overall were lower in the fourth quarter of 2010 compared to the prior year period primarily due to lower showroom rent and other marketing expenses and a reduction in professional fees.
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