Stanley 3Q Sales off 29.4%
October 15, 2009
Stanley Furniture Company Inc. (Nasdaq-NGS: STLY), Stanleytown, Va., on Wednesday reported third-quarter 2009 sales sales of $38.5 million, a 29.4 percent decrease from the same period last year.
Stanley lost $4.4 million for the period ended Sept. 26, compared with a net loss of $695,000 for third-quarter 2008.
Through 2009's first nine months, net sales of $120.5 million decreased 31.6 percent from the comparable prior-year period. At the end of three quarters this year, Stanley has a net loss of $9.7 million, compared with net income of $471,000 at the same point in 2008.
Year-to-date operating losses include pre-tax restructuring charges of $1.2 million in the 2009 period and $5.5 million in the 2008 period. The increased operating loss is primarily due to the significant reduction in sales and production levels, which have led to significant unfavorable factory overhead variances and plant inefficiencies. Costs associated with the transition of approximately one-third of the company's Young America product line from off-shore sourcing to its own domestic manufacturing facilities and higher selling discounts also contributed to the increased operating loss in 2009.
"We believe our sales performance is indicative of consumer demand for residential wood furniture in our price segment," said Albert Prillaman, chairman and CEO. "Demand for better goods continues to bump along at very depressed levels and we see no signs of any near-term improvement. We are disappointed with our operating results, as our sales have declined at a faster rate than we have been able to adjust our cost structure."
"We are currently evaluating additional initiatives to further reduce costs, and lower our break-even point," said President and COO Glenn Prillaman. "We believe the actions we have already taken along with these additional initiatives will improve our operating results in the current recessionary environment and better position the company for profitable growth. Our recent sales and marketing efforts to reposition our Young America product line as the trusted brand in our industry has been initially well received. Our green, safety, color and quality initiatives can best be understood by visiting our B2B Web site yamadeinusa.com."
Stanley lost $4.4 million for the period ended Sept. 26, compared with a net loss of $695,000 for third-quarter 2008.
Through 2009's first nine months, net sales of $120.5 million decreased 31.6 percent from the comparable prior-year period. At the end of three quarters this year, Stanley has a net loss of $9.7 million, compared with net income of $471,000 at the same point in 2008.
Year-to-date operating losses include pre-tax restructuring charges of $1.2 million in the 2009 period and $5.5 million in the 2008 period. The increased operating loss is primarily due to the significant reduction in sales and production levels, which have led to significant unfavorable factory overhead variances and plant inefficiencies. Costs associated with the transition of approximately one-third of the company's Young America product line from off-shore sourcing to its own domestic manufacturing facilities and higher selling discounts also contributed to the increased operating loss in 2009.
"We believe our sales performance is indicative of consumer demand for residential wood furniture in our price segment," said Albert Prillaman, chairman and CEO. "Demand for better goods continues to bump along at very depressed levels and we see no signs of any near-term improvement. We are disappointed with our operating results, as our sales have declined at a faster rate than we have been able to adjust our cost structure."
"We are currently evaluating additional initiatives to further reduce costs, and lower our break-even point," said President and COO Glenn Prillaman. "We believe the actions we have already taken along with these additional initiatives will improve our operating results in the current recessionary environment and better position the company for profitable growth. Our recent sales and marketing efforts to reposition our Young America product line as the trusted brand in our industry has been initially well received. Our green, safety, color and quality initiatives can best be understood by visiting our B2B Web site yamadeinusa.com."
