Exhibit 99.1
For Immediate Release For more information contact:
Wednesday, July 27, 2005 Frank T. Kane, Vice President & CFO
Chromcraft Revington, Inc.
Reports Second Quarter and First Half Results
Delphi, Indiana, July 27, 2005 - Chromcraft Revington, Inc. (AMEX:CRC)
today reported higher sales and net earnings for the second quarter ended July
2, 2005 compared to the prior year period.
Sales for the second quarter increased 1.8% to $43,401,000 from $42,638,000
in the year earlier quarter. Second quarter sales of occasional, commercial and
upholstered furniture were higher than the prior year period while shipments of
dining room and bedroom furniture were lower. For the three months ended July 2,
2005, net earnings increased to $2,093,000, or $.48 per share on a diluted
basis, from $2,039,000, or $.48 per share on a diluted basis, for the same
period last year. Operating income for the three months ended July 2, 2005 of
$3,480,000 was at approximately the same level as compared to the year ago
period.
Sales for the first six months of 2005 were $88,060,000, a 1.2% decrease
from the year earlier period. For the six months ended July 2, 2005 net earnings
were $4,349,000, or $1.01 per share on a diluted basis, as compared to
$3,532,000, or $.84 per share on a diluted basis, for the prior year period. Net
earnings for the six months ended July 3, 2004 included a previously reported
pre-tax charge of $1,100,000, or $.16 per share after-tax, recorded in the first
quarter of 2004, to reflect a supplemental retirement benefit to the former
President & Chief Executive Officer of the Company. Excluding this charge,
diluted earnings per share for the first half of 2005 were at approximately the
same level as compared to the same period last year.
Commenting on second quarter results, Benjamin Anderson-Ray, Chief
Executive Officer of the Company, said that shipments of coordinated upholstered
and occasional furniture room packages have been well received at retail. He
added that higher shipments of public waiting area seating boosted commercial
furniture sales for the quarter as compared to the prior year period. Mr.
Anderson-Ray pointed out that the Las Vegas Furniture Show has been successful
in attracting new customers and interest in the Company's product lines.
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.
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Condensed Consolidated Statements of Earnings (unaudited)
Chromcraft Revington, Inc.
(In thousands, except per share data)
Three Months Ended Six Months Ended
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July 2, July 3, July 2, July 3,
2005 2004 2005 2004
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Sales $43,401 $42,638 $88,060 $89,105
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Gross margin 10,232 9,873 20,791 20,581
Selling, general and administrative expenses 6,752 6,374 13,581 14,461
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Operating income 3,480 3,499 7,210 6,120
Interest expense 164 189 318 386
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Earnings before income tax expense 3,316 3,310 6,892 5,734
Income tax expense 1,223 1,271 2,543 2,202
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Net earnings $ 2,093 $ 2,039 $ 4,349 $ 3,532
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Earnings per share of common stock
Basic $ .49 $ .49 $ 1.02 $ .86
Diluted $ .48 $ .48 $ 1.01 $ .84
Shares used in computing earnings
per share
Basic 4,299 4,132 4,253 4,115
Diluted 4,340 4,220 4,306 4,201
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Condensed Consolidated Balance Sheets (unaudited)
Chromcraft Revington, Inc.
(In thousands)
July 2, July 3, December 31,
2005 2004 2004
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Accounts receivable $20,085 $19,537 $18,133
Inventories 36,157 36,716 33,666
Prepaid expenses 2,351 2,018 1,971
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Current assets 58,593 58,271 53,770
Property, plant and equipment, net 31,200 33,882 32,490
Other long-term assets 818 803 776
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Total assets $90,611 $92,956 $87,036
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Current portion of bank debt $ -- $ 5,000 $ --
Accounts payable 5,316 5,791 5,093
Accrued liabilities 8,433 9,021 8,623
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Current liabilities 13,749 19,812 13,716
Bank debt 4,100 9,550 5,700
Other long-term liabilities 4,251 5,500 4,711
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Total liabilities 22,100 34,862 24,127
Stockholders' equity 68,511 58,094 62,909
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Total liabilities and stockholders' equity $90,611 $92,956 $87,036
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Condensed Consolidated Statements of Cash Flows (unaudited)
Chromcraft Revington, Inc.
(In thousands)
Six Months Ended
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July 2, July 3,
2005 2004
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Operating Activities
Net earnings $ 4,349 $ 3,532
Adjustments to reconcile net earnings to net
cash provided by (used in) operating activities
Depreciation expense 1,822 1,905
Loss on disposal of property, plant and equipment 232 --
Deferred income taxes 298 (403)
Non-cash ESOP compensation expense 432 459
Stock option compensation expense 65 99
Changes in assets and liabilities
Accounts receivable (1,952) (1,769)
Inventories (2,491) (5,848)
Prepaid expenses (810) (714)
Accounts payable and accrued liabilities 33 (113)
Other long-term liabilities (328) 863
Other 12 (68)
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Cash provided by (used in) operating activities 1,662 (2,057)
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Investing Activities
Capital expenditures, net (764) (620)
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Cash used in investing activities (764) (620)
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Financing Activities
Net borrowings under a bank revolving credit line 2,650 5,000
Principal payments on bank term loan (4,250) (2,500)
Stock repurchase from related party (754) --
Exercise of stock options, net of tax benefit 1,456 177
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Cash provided by (used in) financing activities (898) 2,677
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Net change in cash -- --
Cash at beginning of period -- --
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Cash at end of period $ -- $ --
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