Chromcraft Revington, Inc. Reports Second Quarter And First Half Results
Cash used in operating activities in the first six months of 2012 was $1.5 million as compared to $2.3 million used in the prior year period. The improved cash flow was primarily due to a lower operating loss and an increase in cash from net working capital. The Company had net borrowings on its revolving credit facility of $1.8 million in the first half of 2012 which was primarily used to fund the $1.5 million used for operating activities, the purchase of EOC and the payment of fees related to our new revolving credit facility with Gibraltar Business Capital, LLC. (“Gibraltar”) and the termination of our credit facility with First Business Capital. Outstanding borrowings on the revolving credit facility at June 30 and August 10, 2012 were approximately $2.7 and $2.5 million, respectively.
Commenting on these results, Ronald H. Butler, Chairman and Chief Executive Officer, said “Despite the continuing low consumer confidence in the economy and the very difficult retail operating environment, we increased sales in the second quarter of 2012 as compared to the prior year period, largely due to increased sales of our commercial furniture products to the health care industry, primarily through our purchase of EOC. The ongoing difficult operating environment in the residential furniture market will continue to be challenging in 2012.
Our acquisition in March 2012 of California-based EOC, with its commercial product lines, especially an extensive health care line, complement our current product line of seating, tables, and waiting area furniture. In addition, the three year contract we were awarded late in 2011 with the Premier healthcare alliance is expected to boost our sales in this product line. The health care sector continues to grow significantly and we believe this alliance continues to position the commercial line of our Chromcraft division favorably for the future. ”
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