EXHIBIT 99.1
For Immediate Release For more information contact:
Wednesday, April 27, 2005 Frank T. Kane, Vice President & CFO
Chromcraft Revington, Inc.
Reports 2005 First Quarter Results
Delphi, Indiana, April 27, 2005 - Chromcraft Revington, Inc.
(AMEX:CRC) today reported net earnings for the three months ended April 2, 2005
of $2,256,000, or $.53 per share on a diluted basis, as compared to $1,493,000,
or $.36 per share on a diluted basis, for the same period last year. Sales for
the first quarter decreased 3.9% to $44,659,000 from $46,467,000 in the year
earlier quarter.
As previously reported, the Company recorded a pre-tax charge of
$1,100,000, or $.16 per share after-tax, in the first quarter of 2004 to reflect
a minimum annual supplemental retirement benefit payable to Michael E. Thomas,
Chairman, President and Chief Executive Officer. The charge resulted from an
amendment to Mr. Thomas' employment and supplemental retirement agreements with
the Company. Excluding this charge, diluted earnings per share for the current
quarter were at approximately the same level as compared to the first quarter of
2004.
Commenting on first quarter results, Thomas said that the sales
decrease from the first quarter of last year was the result of lower shipments
of dining room, occasional and bedroom furniture partially offset by higher
shipments of upholstered and commercial furniture. The sales decline was
primarily due to foreign import competition. Thomas said that the upholstered
furniture sales increase was primarily due to new product introductions. Thomas
pointed out that the Company's balance sheet remained strong at quarter-end with
bank indebtedness representing 6.8% of total capitalization. Looking forward,
Thomas noted that incoming orders are running slightly behind the year ago
level.
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.
More.....................
Condensed Consolidated Statements of Earnings (unaudited)
Chromcraft Revington, Inc.
(In thousands, except per share data)
Three Months Ended
-------------------
April 2, April 3,
2005 2004
------- -------
Sales $44,659 $46,467
------- -------
Gross margin 10,559 10,708
Selling, general and administrative expenses 6,829 8,087
------- -------
Operating income 3,730 2,621
Interest expense 154 197
------- -------
Earnings before income tax expense 3,576 2,424
Income tax expense 1,320 931
------- -------
Net earnings $ 2,256 $ 1,493
======= =======
Earnings per share of common stock
Basic $ .54 $ .36
Diluted $ .53 $ .36
Shares used in computing earnings per share
Basic 4,209 4,098
Diluted 4,273 4,183
More ...
Condensed Consolidated Balance Sheets (unaudited)
Chromcraft Revington, Inc.
(In thousands)
April 2, April 3, December 31,
2005 2004 2004
------- ------- -------
Cash and cash equivalents $ 156 $ -- $ --
Accounts receivable 20,472 21,635 18,133
Inventories 34,362 32,784 33,666
Deferred income taxes and prepaid expenses 2,031 1,634 1,971
------- ------- -------
Current assets 57,021 56,053 53,770
Property, plant and equipment, net 31,849 34,439 32,490
Other long-term assets 811 765 776
------- ------- -------
Total assets $89,681 $91,257 $87,036
======= ======= =======
Current portion of bank debt $ -- $ 5,000 $ --
Accounts payable 4,687 5,356 5,093
Accrued liabilities 9,586 11,021 8,623
------- ------- -------
Current liabilities 14,273 21,377 13,716
Bank debt 4,800 8,500 5,700
Other long-term liabilities 5,078 5,607 4,711
------- ------- -------
Total liabilities 24,151 35,484 24,127
Stockholders' equity 65,530 55,773 62,909
------- ------- -------
Total liabilities and stockholders' equity $89,681 $91,257 $87,036
======= ======= =======
More ...
Condensed Consolidated Statements of Cash Flows (unaudited)
Chromcraft Revington, Inc.
(In thousands)
Three Months Ended
---------------------
April 2, April 3,
2005 2004
------- -------
Operating Activities
Net earnings $ 2,256 $ 1,493
Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities
Depreciation expense 888 980
Deferred income taxes (8) (460)
Non-cash ESOP compensation expense 221 226
Stock option compensation expense 45 50
Changes in assets and liabilities
Accounts receivable (2,339) (3,867)
Inventories (696) (1,916)
Accounts payable and accrued liabilities 557 1,452
Other long-term liabilities 414 1,003
Other (115) (332)
------- -------
Cash provided by (used in) operating activities 1,223 (1,371)
------- -------
Investing Activities
Capital expenditures, net (247) (256)
------- -------
Cash used in investing activities (247) (256)
------- -------
Financing Activities
Net borrowings under a bank revolving credit line 3,350 2,700
Principal payments on bank term loan (4,250) (1,250)
Stock repurchase from related party (754) --
Exercise of stock options, net of tax benefit 834 177
------- -------
Cash provided by (used in) financing activities (820) 1,627
------- -------
Net change in cash and cash equivalents 156 --
Cash and cash equivalents at beginning of period -- --
------- -------
Cash and cash equivalents at end of period $ 156 $ --
======= =======