Furniture Brands International's CEO Discusses Q2 2012 Results - Earnings Call Transcript
On the retail side of our business, sales from the 44 Thomasville stores that we have operated for more than 15 months were down 7.4% from the second quarter of 2011 following an 8% same-store sales increase in the second quarter of 2011.
We ended the quarter with 48 company-owned Thomasville stores, our Thomasville retail operating loss for open stores improved to 4.3 million from the 4.7 million loss reported in the second quarter of 2011 driven by lower SG&A cost.
Moving on to our balance sheet. We generated 3.7 million of free cash flow in the second quarter. This was primarily driven by continued improvements in working capital management and disciplined capital spending.
Capital expenditures for the quarter came in at 2 million for a year-to-date capital spend of 3 million. We remained disciplined on the capital allocation front and expect CapEx as well as depreciation to come in at the low end or below our prior guidance ranges. Just as a reminder these ranges were 16 to 18 million for CapEx and 22 to 24 million for D&A in 2012. We continue to manage our resources diligently as we strive to maintain high service levels for our customers balanced by disciplined management of working capital.We contributed 2.9 million for our pension plan in the second quarter of 2012 or 5.5 million contribution year-to-date. As you know, with the recent passing of [Mac 21] and the resulting interest rate stabilization changes, Congress delivered pension relief in 2012. We expect the impact will be favorable relative to our prior expectations for cash contributions for pension plan over the next three years and we are currently in the process of determining exactly what the impact will be. Read the rest of this transcript for free on seekingalpha.com
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