Stanley Furniture Company, Inc. (Nasdaq-NGS: STLY) today reported sales and operating results for the third quarter of 2012.
Third quarter 2012 highlights:
- Net sales were $24.0 million, an 8.0% decrease compared to 2011 and a 1.8% decrease on a sequential quarter basis.
- Gross margin dropped slightly to 14.0% of net sales compared to 14.7% in 2011.
- Selling, general and administrative expenses were $4.6 million (19.3% of net sales) compared to $5.0 million (19.0% of net sales) in 2011.
- Operating loss for the third quarter was $1.3 million compared to a loss of $1.1 million 2011.
- As of September 29, 2012, the company’s financial position reflected $44.9 million in cash, restricted cash and short-term investments.
- No shares were purchased during the quarter under the Company’s $5.0 million share repurchase program.
Year to date 2012 highlights:
- Net sales were $75.2 million compared to $80.0 million in 2011.
- Gross margin improved to 14.0% of net sales compared to 12.0% in 2011, excluding restructuring charges in both years.
- Selling, general and administrative expenses improved to 18.2% of net sales compared to 18.5% in 2011.
- Net of restructuring charges in both years, operating loss narrowed to $3.2 million compared to the loss of $5.2 million in 2011.
- Capital expenditures and investments in new systems totaled $5.0 million.
Overview“As expected, we improved our service position on the Stanley line which had been a factor hindering growth in this part of our business throughout the year. While retail activity in our segment of the industry was softer than we anticipated, we did see increased sales in our Stanley line,” commented Glenn Prillaman, President and Chief Executive Officer. “The overall decline in sales for the quarter can be attributed to our Young America line, but this was expected due to the short-term disturbances related to consecutive initial production runs of new product in our factory and the difficulties one would expect at retail when exchanging all floor samples for that new product at a time when consumer traffic is slow. However, our Young America backlog grew significantly during the quarter and now stands at the highest level since we consolidated all products into our single factory in Robbinsville.”