Hooker Makes Profit for Fiscal Year
April 3, 2009
Hooker Furniture (NASDAQ-GS: HOFT), Martinsville, Va., on Thursday reported net sales of $261.2 million and net income of $6.9 million, or $0.62 per share, for its fiscal year ended Feb. 1.
Sales for the year were down 17.6 percent compared with the 53-week prior year's $316.8 million; and net income was off 64.8 percent.
"Hooker Furniture successfully navigated the economic crisis this year, delivered a modest profit, maintained a respectable operating margin and effectively managed our balance sheet," said Paul B. Toms Jr., chairman, chief executive officer and president. "We have a strong cash and credit availability position, no unutilized assets and little debt. In response to lower
demand, we reduced costs and shaped a leaner, more efficient organization. Our financial strength has enabled us to invest in the business, continue to launch new product lines and pursue strategic initiatives that position us for maximum growth and profitability in the long term."
Net sales for the thirteen-week 2009 fourth quarter of $56.5 million declined $25.8 million, or 31.3 percent compared to net sales of $82.3 million recorded in the fourteen-week 2008 fourth quarter.
"The fourth quarter was especially difficult with steepening year-over-year declines in sales and orders," Toms said. "Those declines impacted capacity utilization and profitability at our domestic upholstery manufacturing facilities."
The company reported a net loss for the 2009 quarterly period of $719,000, or $0.07 per share principally as a result of the non-cash impairment charges mentioned previously, compared with net income of $4.6 million or $0.39 per share in the same 2008 period.
Because the Company has adopted a fiscal year that ends on the Sunday closest to Jan. 31 of each year, the 2008 annual and quarterly fiscal periods were one week longer than the comparable 2009 periods. In addition to the impact of the economy and the shorter operating periods, net sales also declined in each of the fiscal 2009 periods due to lower shipments of discontinued domestically-produced wood furniture.
Looking ahead, Toms said management believes the economy may have bottomed out.
"As the economy has worsened over the past several months, we've experienced a steepening decline in year over year incoming order rates and believe we're in for another quarter or two of challenging conditions," Toms said. "However, we believe the economy may have hit the trough and are encouraged by a pickup in housing activity over the last two months and steady gains in the stock market over the last few weeks. We expect to see a slight increase in consumer confidence by the third or fourth quarter, if home values stabilize and the stock market continues to rebound from its low point earlier this year. This would be good news for furniture and other large-ticket consumer durable purchases."
Sales for the year were down 17.6 percent compared with the 53-week prior year's $316.8 million; and net income was off 64.8 percent.
"Hooker Furniture successfully navigated the economic crisis this year, delivered a modest profit, maintained a respectable operating margin and effectively managed our balance sheet," said Paul B. Toms Jr., chairman, chief executive officer and president. "We have a strong cash and credit availability position, no unutilized assets and little debt. In response to lower
demand, we reduced costs and shaped a leaner, more efficient organization. Our financial strength has enabled us to invest in the business, continue to launch new product lines and pursue strategic initiatives that position us for maximum growth and profitability in the long term."
Net sales for the thirteen-week 2009 fourth quarter of $56.5 million declined $25.8 million, or 31.3 percent compared to net sales of $82.3 million recorded in the fourteen-week 2008 fourth quarter.
"The fourth quarter was especially difficult with steepening year-over-year declines in sales and orders," Toms said. "Those declines impacted capacity utilization and profitability at our domestic upholstery manufacturing facilities."
The company reported a net loss for the 2009 quarterly period of $719,000, or $0.07 per share principally as a result of the non-cash impairment charges mentioned previously, compared with net income of $4.6 million or $0.39 per share in the same 2008 period.
Because the Company has adopted a fiscal year that ends on the Sunday closest to Jan. 31 of each year, the 2008 annual and quarterly fiscal periods were one week longer than the comparable 2009 periods. In addition to the impact of the economy and the shorter operating periods, net sales also declined in each of the fiscal 2009 periods due to lower shipments of discontinued domestically-produced wood furniture.
Looking ahead, Toms said management believes the economy may have bottomed out.
"As the economy has worsened over the past several months, we've experienced a steepening decline in year over year incoming order rates and believe we're in for another quarter or two of challenging conditions," Toms said. "However, we believe the economy may have hit the trough and are encouraged by a pickup in housing activity over the last two months and steady gains in the stock market over the last few weeks. We expect to see a slight increase in consumer confidence by the third or fourth quarter, if home values stabilize and the stock market continues to rebound from its low point earlier this year. This would be good news for furniture and other large-ticket consumer durable purchases."
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