Exhibit 99.1
For Immediate Release For more information contact:
Tuesday, February 10, 2004 Frank T. Kane, Vice President & CFO
Chromcraft Revington, Inc.
Reports 2003 and Fourth Quarter Results
Delphi, Indiana, February 10, 2004 - Chromcraft Revington, Inc. (NYSE:CRC)
today reported net earnings for the fourth quarter of 2003 of $1,689,000, or
$.41 per share on a diluted basis, as compared to $3,012,000, or $.72 per share
on a diluted basis, for the prior year period. Sales for the quarter decreased
6.8% to $45,680,000 from $49,036,000 in the fourth quarter of 2002. Fourth
quarter earnings per share were higher as compared to the Company's previous
guidance of $.20 to $.30 per share.
For the year ended December 31, 2003 net earnings were $8,088,000, or $1.94
per share on a diluted basis, as compared to earnings before an accounting
change of $10,738,000, or $2.04 per share on a diluted basis, for the prior year
period. Sales for 2003 were $184,228,000, a 14.0% decrease from 2002 sales of
$214,186,000. Net earnings for 2003 included three previously reported
non-recurring items: a $950,000 pre-tax inventory write down for slow moving
bedroom furniture, a $3,650,000 pre-tax non-cash gain from the resolution of a
claim that existed as part of the Company's earlier acquisition of a subsidiary
and $515,000 of additional income tax expense for a change in estimate of the
tax basis of certain acquired assets. The net effect of these items added $.28
to earnings per share on a diluted basis for 2003.
The number of weighted average shares outstanding used in the calculation
of diluted earnings per share was 4,173,000 for 2003 compared to 5,273,000 for
2002. The lower number of shares outstanding in 2003 was primarily due to the
purchase of 5,695,418 shares of Company common stock by Chromcraft Revington and
its employee stock ownership plan that was completed on March 15, 2002.
Commenting on fourth quarter results, Michael E. Thomas, Chairman,
President and Chief Executive Officer, said that the sales decrease from last
year was due to lower shipments of residential furniture, particularly in
bedroom furniture, primarily as a result of foreign import competition. Thomas
added that commercial furniture shipments were slightly higher as compared to
the fourth quarter of 2002. Thomas pointed out that a reduced production level
in the fourth quarter, which impacted fixed cost absorption and manufacturing
efficiencies, had a negative impact on operating income as compared to the same
period in 2002. Thomas added that excess cash flow from operations, primarily
due to working capital management, was used to pay down $11,200,000 of bank
indebtedness in the fourth quarter of 2003.
Chromcraft Revington designs, manufactures and sells residential and
commercial furniture throughout the United States under the "Chromcraft,"
"Peters-Revington," "Silver Furniture," "Cochrane Furniture" and "Sumter
Cabinet" brand names. The Company's strategy is to operate as a low-cost, high
quality manufacturer of residential and commercial furniture. The Company has
increased imports of low-cost labor intensive furniture components from the
Pacific Rim to supplement the Company's furniture manufacturing. Using this
blended approach of domestic manufacturing and selective importing, the Company
is better able to control the quality of furniture and service to its customers.
More.....................
Condensed Consolidated Statements of Earnings (Loss) (unaudited)
(In thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2003 2002 2003 2002
--------- --------- --------- ---------
Sales $ 45,680 $ 49,036 $ 184,228 $ 214,186
--------- --------- --------- ---------
Gross margin 9,238 12,877 38,636 49,441
Selling, general and
administrative expenses 6,270 7,455 27,263 30,364
Other -- -- (3,650)(a) --
--------- --------- --------- ---------
Operating income 2,968 5,422 15,023 19,077
Interest expense 243 564 1,147 1,758
--------- --------- --------- ---------
Earnings before income taxes
and accounting change 2,725 4,858 13,876 17,319
Income tax expense 1,036 1,846 5,788 6,581
--------- --------- --------- ---------
Earnings before accounting change 1,689 3,012 8,088 10,738
Cumulative effect of an accounting
change (net of tax benefit of $1,453) -- -- -- (26,727)
--------- --------- --------- ---------
Net earnings (loss) $ 1,689 $ 3,012 $ 8,088 $ (15,989)
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Net earnings per share of common stock
before an accounting change
Basic $ .41 $ .74 $ 1.97 $ 2.08
Diluted $ .41 $ .72 $ 1.94 $ 2.04
Net earnings (loss) per share of common
stock after an accounting change
Basic $ .41 $ .74 $ 1.97 $ (3.09)
Diluted $ .41 $ .72 $ 1.94 $ (3.09)
Shares used in computing earnings
per share
Basic 4,078 4,076 4,109 5,168
Diluted 4,125 4,173 4,173 5,273
(a) Resolution of a claim that existed as part of the Company's earlier
acquisition of a subsidiary.
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Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
December 31,
2003 2002
-------- --------
Accounts receivable $ 17,768 $ 18,542
Inventories 30,868 39,812
Other assets 1,362 1,040
-------- --------
Current assets 49,998 59,394
Property, plant and equipment, net 35,166 38,705
Other long-term assets 736 2,366
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Total assets $ 85,900 $100,465
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Current portion of bank debt $ 5,000 $ 5,000
Accounts payable 4,642 5,642
Accrued liabilities 10,312 14,611
-------- --------
Current liabilities 19,954 25,253
Bank debt 7,050 23,050
Other long-term liabilities 5,098 6,392
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Total liabilities 32,102 54,695
Stockholders' equity 53,798 45,770
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Total liabilities and stockholders' equity $ 85,900 $100,465
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Condensed Consolidated Statements of Cash Flows (unaudited)
(In thousands)
Year Ended
December 31,
2003 2002
-------- --------
Operating Activities
Net earnings (loss) $ 8,088 $(15,989)
Adjustments to reconcile net earnings (loss) to
net cash provided by operating activities
Depreciation and amortization 4,188 4,718
Loss on disposal of equipment 3 97
Deferred income taxes 1,084 267
Non-cash gain on the resolution of a claim (3,650) --
Non-cash goodwill impairment loss -- 26,727
Non-cash ESOP expenses 837 722
Stock option compensation expense 198 156
Changes in assets and liabilities
Accounts receivable 774 2,483
Inventories 8,944 3,783
Accounts payable and accrued liabilities (2,830) 1,973
Other 234 82
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Cash provided by operating activities 17,870 25,019
-------- --------
Investing Activities
Capital expenditures (674) (1,538)
Proceeds on disposal of property, plant and equipment 22 125
-------- --------
Cash used in investing activities (652) (1,413)
-------- --------
Financing Activities
Net borrowing (repayment) under a bank revolving credit line (4,000) 6,800
Principal payments on bank term loan (12,000) (3,750)
Proceeds from a bank term loan -- 25,000
Stock repurchases and related costs (2,226) (40,529)
Purchase of common stock by ESOP -- (20,000)
Proceeds from exercise of stock options 1,008 666
-------- --------
Cash used in financing activities (17,218) (31,813)
-------- --------
Decrease in cash and cash equivalents -- (8,207)
Cash and cash equivalents at beginning of period -- 8,207
-------- --------
Cash and cash equivalents at end of period $ -- $ --
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