Stanley Furniture Company, Inc. (Nasdaq-NGS:
) today reported sales and operating results for the second quarter of 2011.
Net sales for the quarter increased 3.1% to $27.4 million compared to $26.6 million in the first quarter of 2011. “Sales growth in the second quarter represented our first sequential quarter increase in over a year. While we do not believe the slight increase represents any positive macro-level signs, our reaching a meaningful top line milestone is important given the recent changes in our operational model,” said Glenn Prillaman, President and Chief Executive Officer. “We are still operating in a sluggish retail environment that continues to deal with a stagnant housing market. However, as our efforts to build our product offering and improve our service position continue to take hold, we believe we should recapture lost market share from our restructuring period.” Prillaman continued. Net loss for the quarter decreased to $595,000, or $.04 per share compared to a net loss of $3.9 million, or $.27 per share, in the first quarter of 2011.
Operating loss narrowed by 67.5% to $1.1 million from $3.4 million in the first quarter of 2011. Gross margins increased to $3.6 million, or 13.3% of net sales, in the second quarter from $1.7 million, or 6.3% of net sales, in the first quarter. “We made significant operational progress again in the second quarter, and believe more room for improvement exists even if sales remain flat in the next quarter,” said Micah Goldstein, Chief Operating and Financial Officer.
Cash on hand at quarter-end was $24.0 million, up from $22.3 million on March 31, 2011. Working capital, excluding cash, decreased to $22.6 million from $26.5 million at the end of the first quarter. The Company received $3.1 million in tax refunds and $1.1 million in Continued Dumping and Subsidy Offset Act proceeds during the second quarter. Inventories increased from $22.8 million on March 31, 2011 to $23.9 million at the end of the second quarter. “We continue to be diligent in our efforts to protect our balance sheet,” said Prillaman. “Now that we have established a track record of improved operating results, we can use the strength of our balance sheet to invest in our operations specifically targeting opportunities to improve service levels for our customers,” Prillaman added.