Stanley Furniture Company, Inc. (Nasdaq-NGS: STLY) today reported sales and operating results for the second quarter of 2013.
Second quarter 2013 highlights:
- Net sales were $24.2 million, essentially flat to the second quarter of 2012.
- Gross margin declined to 9.0% of net sales compared to 14.5% in the second quarter of 2012, excluding prior period restructuring items.
- Selling, general and administrative expenses were $4.8 million (20.1% of net sales) compared to $4.5 million (18.4%) in the second quarter of 2012, excluding current period restructuring items.
- The company completed its Corporate Office consolidation to High Point and recorded restructuring related costs of $262,000 in selling, general and administrative expenses.
- During the second quarter, the Company implemented its new enterprise information system as part of its overall customer care initiative.
- Net of restructuring items, operating loss for the second quarter was $2.7 million compared to a loss of $932,000 million in second quarter of 2012.
- As of June 29, 2013, the company’s financial position reflected $24.5 million in cash, restricted cash and short-term investments.
Year to date 2013 highlights:
- Net sales were $50.2 million compared to $51.2 million in the first half of 2012.
- Gross margin declined to 11.1% of net sales compared to 14.0% in the first six months of 2012, excluding restructuring charges in 2012.
- Selling, general and administrative expenses increased to 18.8% of net sales, excluding restructuring charges in the current year, compared to 17.7% in 2012.
- Net of restructuring charges, operating loss for the first half of 2013 was $3.9 million compared to a loss of $1.9 million in the first half of 2012.
- Capital expenditures for leasehold improvements, investment in new systems and equipment purchases totaled $4.4 million in the first half of 2013.
Overview“The most recent quarter represented a significant milestone for our company's multi-year journey to reposition itself for growth," commented Glenn Prillaman, President and Chief Executive Officer. "As we begin the second half of the year, we have now either completed or are simply refining the multiple initiatives that we believe have been necessary for long-term growth but very disruptive to our customers and management team over the last few years. With these distractions behind us, we are now completely focused on the execution of our operating models which should make us one of the most customer-friendly companies within our segment of the marketplace," continued Prillaman. "Specifically, our accomplishments in the quarter included the successful relocation of our corporate office, the opening of our new High Point showroom to wonderful reviews and a well-attended April Furniture Market and the introduction of our new staff to customers.”