This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Hooker Furniture Reports 71% Higher Net Income For Fiscal 2013

The Company had no long-term debt at February 3, 2013 and had $13.2 million available on its $15.0 million revolving credit facility, net of $1.8 million reserved for standby letters of credit.

Business Outlook

"We finished the year with two consecutive quarters of increased consolidated net sales and order rates compared to the same prior-year periods," Toms said. "With the improving economy and initial recovery of the housing market, we believe we're positioned to see continued improvement in orders, sales and profitability versus the prior year. We're encouraged by the sustained improvement in housing sales, new home construction, rising housing prices, reduced housing inventories, historically low mortgage rates and the best housing affordability in years. All of this bodes well for our industry."

Conference Call Details

Hooker Furniture will present its fiscal 2013 annual and fourth quarter results via teleconference and live internet web cast on Monday morning, April 15, 2013 at 9:00 AM Eastern Time. The dial-in number for domestic callers is 877-665-2466, and 678-894-3031 is the number for international callers. The call will be simultaneously web cast and archived for replay on the Company's web site at www.hookerfurniture.com in the Investor Relations section.

Ranked among the nation's top 10 largest publicly traded furniture sources based on 2011 shipments to U.S. retailers, Hooker Furniture Corporation is an 89-year old residential wood, metal and upholstered furniture resource. Major casegoods product categories include home entertainment, home office, accent, dining, and bedroom furniture in the upper-medium price points sold under the Hooker Furniture brand.. Hooker's residential upholstered seating companies include Hickory, N.C.-based Bradington-Young, a specialist in upscale motion and stationary leather furniture, and Bedford, Va.-based Sam Moore Furniture, a specialist in upscale occasional chairs, settees, sofas and sectional seating with an emphasis on cover-to-frame customization. Please visit our websites at www.hookerfurniture.com , www.bradington-young.com , and www.sammoore.com .

Certain statements made in this report, other than those based on historical facts, are forward-looking statements. These statements reflect our reasonable judgment with respect to future events and typically can be identified by the use of forward-looking terminology such as "believes," "expects," "projects," "intends," "plans," "may," "will," "should," "would," "could" or "anticipates," or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Those risks and uncertainties include but are not limited to:  (1) general economic or business conditions, both domestically and internationally, and instability in the financial and credit markets, including their potential impact on our (i) sales and operating costs and access to financing or (ii) customers and suppliers and their ability to obtain financing or generate the cash necessary to conduct their respective businesses; (2) disruptions involving our vendors or the transportation and handling industries, particularly those affecting imported products, including customs issues, labor stoppages, strikes or slowdowns and the availability of shipping containers and cargo ships; (3) disruptions affecting our Henry County, Virginia warehouses and corporate headquarters facilities; (4) price competition in the furniture industry; (5) changes in domestic and international monetary policies and fluctuations in foreign currency exchange rates affecting the price of our imported products and raw materials; (6) the cyclical nature of the furniture industry, which is particularly sensitive to changes in consumer confidence, the amount of consumers' income available for discretionary purchases, and the availability and terms of consumer credit; (7) risks associated with the cost of imported goods, including fluctuation in the prices of purchased finished goods and transportation and warehousing costs; (8) adverse political acts or developments in, or affecting, the international markets from which we import products, including duties or tariffs imposed on those products; (9) risks associated with domestic manufacturing operations, including fluctuations in capacity utilization and the prices and availability of key raw materials, as well as changes in transportation, warehousing and domestic labor costs and environmental compliance and remediation costs; (10) our ability to successfully implement our business plan to increase sales and improve financial performance; (11) the direct and indirect costs associated with the implementation of our Enterprise Resource Planning system, including costs resulting from unanticipated disruptions to our business; (12) achieving and managing growth and change, and the risks associated with new business lines, acquisitions, restructurings, strategic alliances and international operations; (13) risks associated with distribution through third-party retailers, such as non-binding dealership arrangements; (14) capital requirements and costs; (15) competition from non-traditional outlets, such as catalog and internet retailers and home improvement centers; (16) changes in consumer preferences, including increased demand for lower-quality, lower-priced furniture due to declines in consumer confidence and/or discretionary income available for furniture purchases and the availability of consumer credit; and (17) higher than expected costs associated with product quality and safety, including regulatory compliance costs related to the sale of consumer products and costs related to defective or non-compliant products. Any forward looking statement that we make speaks only as of the date of that statement, and we undertake no obligation, except as required by law, to update any forward-looking statements whether as a result of new information, future events or otherwise.

 
Table I
HOOKER FURNITURE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
             
  Fourteen Thirteen   Fifty-three Fifty-two  
  Weeks Ended Weeks Ended   Weeks Ended Weeks Ended  
  February 3, January 29,   February 3, January 29,  
  2013 2012   2013 2012  
             
Net sales  $ 59,641  $ 54,358    $ 218,359  $ 222,505  
             
Cost of sales  42,842  41,428    165,813  173,642  
             
Gross profit  16,799  12,930    52,546  48,863  
             
Selling and administrative expenses  11,488  10,389    39,606  40,375  
             
Asset impairment charge  --  1,815  (a)   --  1,815  (a) 
             
Operating income   5,311  726    12,940  6,673  
             
Other (expense) income, net  (45)  74    53  272  
             
Income before income taxes  5,266  800    12,993  6,945  
             
Income tax expense  1,568  172    4,367  1,888  
             
Net income   $ 3,698  $ 628    $ 8,626  $ 5,057  
             
Earnings per share:            
Basic  $ 0.34  $ 0.06    $ 0.80  $ 0.47  
Diluted  $ 0.34  $ 0.06    $ 0.80  $ 0.47  
             
Weighted average shares outstanding:            
Basic 10,715 10,765   10,745 10,762  
Diluted 10,742 10,786   10,775 10,790  
             
(a) During the fiscal 2012 fourth quarter, the Company recorded asset impairment charges of $1.8 million pretax ($1.1 million after tax, or $0.10 per share) on its Bradington-Young trade name.   
             
 
Table II
HOOKER FURNITURE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
 
  Fourteen Thirteen Fifty-three Fifty-two
  Weeks Ended Weeks Ended Weeks Ended Weeks Ended
  February 3, January 29, February 3, January 29, 
  2013 2012 2013 2012
         
Net Income  $ 3,698  $ 628  $ 8,626  $ 5,057
Other comprehensive income (loss):        
Amortization of actuarial gains   190  (558)  147  (803)
Income tax effect on amortization of actuarial gains  (69)  210  (53)  303
Adjustments to net periodic benefit cost  121  (348)  94  (500)
         
Comprehensive Income  $ 3,819  $ 280  $ 8,720  $ 4,557
 
 
Table III
HOOKER FURNITURE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, including share data)
     
As of February 3, January 29,
  2013 2012
Assets    
Current assets    
Cash and cash equivalents  $ 26,342  $ 40,355
Accounts receivable, less allowance for doubtful accounts of $1,249 and $1,632 on each date  28,272 25,807
Inventories 49,872 34,136
Prepaid expenses and other current assets 3,648 3,182
Deferred taxes-current  1,533 1,012
Total current assets  109,667  104,492
Property, plant and equipment, net 22,829 21,669
Intangible assets 1,257 1,257
Cash surrender value of life insurance policies 17,360 16,217
Deferred taxes-non current 4,458 5,050
Other assets  252  486
Total assets  $ 155,823  $ 149,171
     
Liabilities and Shareholders' Equity    
Current liabilities    
Trade accounts payable  $ 11,620  $ 9,233
Accrued salaries, wages and benefits 3,316 3,855
Other accrued expenses 2,531 792
Accrued dividends  --  1,078
Total current liabilities 17,467 14,958
Deferred compensation 7,311 7,100
Total liabilities  24,778  22,058
     
Shareholders' equity    
Common stock, no par value, 20,000 shares authorized, 10,746 and 10,782 shares issued and outstanding on each date  17,360 17,262
Retained earnings  113,483 109,742
Accumulated other comprehensive income  202  109
Total shareholders' equity  131,045  127,113
Total liabilities and shareholders' equity  $ 155,823  $ 149,171
 
 
 Table IV 
 HOOKER FURNITURE CORPORATION AND SUBSIDIARIES 
 CONSOLIDATED STATEMENTS OF CASH FLOWS 
 (In thousands) 
 
   Fifty-three Weeks Ended   Fifty-two Weeks Ended 
   February 3,   January 29, 
  2013 2012
 Cash flows from operating activities     
 Cash received from customers   $ 215,982  $ 224,577
 Cash paid to suppliers and employees  (216,379) (190,365)
 Income taxes paid, net  (2,901) (1,987)
 Interest (paid) received, net  (35) 51
 Net cash (used in) / provided by operating activities  (3,333) 32,276
     
 Cash flows from investing activities     
 Purchases of property, plant and equipment  (4,061) (3,805)
 Proceeds received on notes issued for the sale of property  37 35
 Proceeds from the sale of property and equipment   303  125
 Premiums paid on life insurance policies  (902) (1,144)
 Proceeds received on life insurance policies   --  560
 Net cash used in investing activities  (4,623) (4,229)
     
 Cash flows from financing activities     
 Cash dividends paid  (5,386) (4,315)
 Purchase and retirement of common stock  (671)  -- 
 Net cash used in financing activities  (6,057) (4,315)
     
 Net (decrease) / increase in cash and cash equivalents  (14,013) 23,732
 Cash and cash equivalents at beginning of year  40,355 16,623
 Cash and cash equivalents at end of year   $ 26,342  $ 40,355
     
 Reconciliation of net income to net cash (used in) / provided by operating activities:     
 Net income   $ 8,626  $ 5,057
 Depreciation and amortization  2,566 2,566
 Non-cash restricted stock awards  465 (38)
 Asset impairment charge   --  1,815
 Loss on disposal of property  32 108
 Provision for doubtful accounts  61 361
 Deferred income tax  22 (36)
 Gain on life insurance policies  (680) (565)
 Changes in assets and liabilities:     
 Accounts receivable  (2,526) 1,502
 Inventories  (15,736) 23,302
 Prepaid expenses and other assets  170 451
 Trade accounts payable  2,387 (2,552)
 Accrued salaries, wages and benefits  (539) 429
 Accrued income taxes  1,444 (63)
 Other accrued expenses (income)  295 (256)
 Deferred compensation  80 195
 Net cash (used in) /provided by operating activities   $ (3,333)  $ 32,276
CONTACT: Paul B. Toms Jr.
         Chairman and Chief Executive Officer
         Phone: (276) 632-2133, or
         Paul A. Huckfeldt, Vice President, Finance & 
         Accounting & Chief Financial Officer
         Phone: (276) 632-3949, or
         Kim D. Shaver 
         Vice President, Marketing Communications
         Phone: (336) 880-1230

company logo

4 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,156.85 +24.88 0.15%
S&P 500 2,001.57 +2.59 0.13%
NASDAQ 4,562.1890 +9.43 0.21%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs