Stanley Furniture Company, Inc. (Nasdaq-NGS: STLY) today reported sales and operating results for the 2012 fourth quarter and total year.
Fourth quarter 2012 highlights:
- Net sales were $23.4 million compared to $24.6 million in 2011.
- Operating loss was $2.4 million compared to a loss of $1.1 million in 2011, due primarily to the decline in Young America sales and spending in preparation for the Winter Market in Las Vegas.
- Ended the year with $37.7 million in cash, restricted cash and short-term investments.
- Completed the Young America product design and operational transition as well as planned capital improvements.
- Purchased 146,015 shares of its common stock at an average price of $4.53 per share.
Total year 2012 highlights:
- Net sales were $98.6 million compared to $104.6 million in 2011.
- Gross margin improved to 12.9% of net sales compared to 12.3% in 2011, excluding restructuring charges in both years.
- Selling, general and administrative expenses were reduced to $18.3 million, or 18.6% of net sales, from $19.3 million, or 18.4% of net sales, in 2011.
- Net of restructuring charges in both years, operating loss narrowed to $5.6 million in 2012 from a $6.4 million loss in 2011.
- Invested $6.5 million in new information systems as well as the modernization of the Robbinsville, North Carolina facility that manufacturers Young America product.
Overview“As expected, the combination of two factors hurt sales in the fourth quarter: soft retail demand in most areas of the country for residential wood furniture in our segment, and the disruption at retail caused by floor sample changes associated with the final chapter of the launch of our new Young America product line,” commented Glenn Prillaman, President and Chief Executive Officer. “While total revenue declined for the quarter and year, our Stanley brand grew revenues in both periods contributing to the year’s bottom line improvements,” said Prillaman.