“Our Young America brand remains in transition until later this year when we expect new enhancements to all existing products to be completed and the marketing support for those products will be in place at retail. New product designs should be on retail floors before the end of the year. We believe that the completion of these efforts paired with continual operational improvements will result in a product of significantly greater value in the marketplace boosting sales. In the meantime, we recognize we are sacrificing immediate sales in order to position the Young America brand and its supporting retailers to compete with price-driven, imported product in the long term,” Prillaman commented.
Cash, restricted cash and short-term investments at quarter-end were $47.4 million, up from $17.3 million at December 31, 2011. CDSOA proceeds of $39.9 million were received in the second quarter for funds that were previously withheld under the antidumping duty order for wooden bedroom furniture imported from China. Capital investments associated with modernizing our manufacturing facility in Robbinsville, North Carolina were $2.6 million in the first half of 2012. Additionally, the company has spent $1.3 million in 2012 toward new systems. Inventory levels associated with our Stanley line decreased during the second quarter and are down from year-end.
Stock Repurchase ProgramThe company announced today that its Board of Directors has approved a new authorization for the company to acquire up to $5.0 million of its common stock. These repurchases may be made from time to time in the open market, in privately negotiated transactions, or otherwise, at prices that the company deems appropriate. Commenting on this announcement, Prillaman said, “As you know, we received a substantial amount of cash from CDSOA proceeds in the second quarter. As a result, the Board is carefully considering the best uses of these funds to enhance shareholder value and has authorized a share repurchase program. This demonstrates management’s and the Board’s continued confidence in our strategy and prospects for future growth and earnings.”