Stanley Furniture Company, Inc. (Nasdaq-NGS: STLY) today reported sales and operating results for the first quarter of 2012.
Highlights from the first quarter of 2012 include:
- Net sales were $26.8 million, a 0.8% increase compared to the first quarter of 2011 and an 8.7% increase on a sequential quarter basis.
- Gross margin improved to 13.4% of net sales compared to 6.4% in the first quarter of 2011.
- Selling, general and administrative expenses were $4.6 million (17.1% of net sales) compared to $5.1 million (19.3%) in the first quarter of 2011.
- Operating loss for the first quarter was $984,000 compared to a loss of $3.4 million in first quarter of 2011.
- As of March 31, 2012, the company’s financial position reflected $11.8 million in cash and restricted cash, and the company remained debt free.
- Subsequent to quarter end, the company began to receive Continued Dumping and Subsidy Offset Act (CDSOA) proceeds for funds that were previously withheld under the antidumping duty order for wooden bedroom furniture imported from China. At the time of this release, the company had received $9.5 million and expects to receive the remaining $30.5 million in the coming weeks. These proceeds will be recorded as income during the second quarter.
- The company is projecting second quarter net sales to be down slightly from prior year and expects a continued narrowing of operating losses.
Net sales for the first quarter of 2012 increased slightly to $26.8 million compared to $26.6 million in the first quarter of 2011 and represented an 8.7% increase on a sequential quarter basis. Operating loss narrowed substantially to $984,000 compared to a $3.4 million (including $768,000 in restructuring charges) operating loss in the first quarter of 2011.