Chromcraft Revington, Inc. (NYSE Amex: CRC) today reported its results for the first quarter of 2011. The net loss was $1,804,000 for the current quarter as compared to a net loss of $980,000 for the first quarter of 2010. Sales for the first quarter of 2011 were $12,480,000 as compared to sales of $13,907,000 for the prior year period.
Residential furniture shipments in the first quarter of 2011 were lower as compared to the prior year period primarily due to weakness in consumer demand for residential furniture in our product categories and price segment, which we believe is consistent with industry trends; the continuing economic downturn which reflects the ongoing labor and housing market struggles and reduced access to consumer credit; and import competition. Commercial furniture sales were lower for the first quarter of 2011 as compared to the prior year period primarily due to lower shipments of conference tables and seating products.
Operating results in the first quarter of 2011 were negatively impacted by a lower number of units shipped as compared to the same period last year which resulted in higher unabsorbed fixed overhead costs and manufacturing inefficiencies, an unfavorable product sales mix, and higher material and freight costs on certain products due to cost increases and delays in receiving parts from overseas suppliers. Selling, general and administrative expenses were $223,000 lower in the first quarter of 2011 as compared to the prior year period primarily due to lower sales commissions.
Cash flow used in operating activities was $0.4 million for the first quarter of 2011 as compared to $4.5 million provided in the prior year period. The $4.5 million of cash provided in the 2010 period included the receipt of a tax refund of $6.6 million. Excluding this tax refund, we used $1.7 million less cash in the first quarter of 2011 as compared to the prior year period, primarily due to larger reductions in inventories and accounts receivable in the 2011 period. The Company had cash of $3.8 million at April 2, 2011, no bank borrowings during the first quarter of 2011, and no outstanding loan balance at April 2, 2011.
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