EXHIBIT 99.1
For Immediate Release For more information contact:
Thursday, October 27, 2005 Frank T. Kane, Vice President & CFO
Chromcraft Revington, Inc.
Reports Third Quarter Results
Delphi, Indiana, October 27, 2005 - Chromcraft Revington, Inc.
(AMEX:CRC) today reported sales of $40,836,000 and net earnings of $1,191,000
for the third quarter ended October 1, 2005.
Sales for the third quarter of $40,836,000 represented a 2.0% decrease
from $41,658,000 reported for the same quarter last year. Shipments of bedroom,
dining room and occasional furniture for the third quarter of 2005 were lower as
compared to the same period last year. The sales decrease in these product
categories was partially offset by higher shipments of commercial and
upholstered furniture. Net earnings for the three months ended October 1, 2005
were $1,191,000, or $.27 per share on a diluted basis. This compares to net
earnings of $1,979,000, or $.47 per share on a diluted basis, for the year ago
period. Third quarter results were impacted by an unfavorable product sales mix
and higher compensation related costs, bad debt expense and interest expense as
compared to the third quarter of 2004.
For the first nine months of 2005, sales decreased 1.4% to $128,896,000
from $130,763,000 in the year earlier period. Net earnings were $5,540,000, or
$1.28 per share on a diluted basis, as compared to $5,511,000, or $1.31 per
share on a diluted basis, for the prior year period. Included in 2004 results
was a pre-tax charge of $1,100,000, or $.16 per share after-tax, to reflect a
supplemental retirement benefit to the former President and Chief Executive
Officer of the Company.
Commenting on third quarter results, Mr. Benjamin Anderson-Ray,
Chairman and Chief Executive Officer, stated that upholstered furniture
shipments were boosted by new product introductions. He added that commercial
furniture sales activity continues to reflect an improved business environment
for the office furniture industry. Mr. Anderson-Ray pointed out that the Company
recently entered into a new credit agreement with Wells Fargo Bank, N.A. that
provides for a revolving loan facility of up to $35 million on an unsecured
basis. Mr. Anderson-Ray said that the Company's financial strength provides
flexibility to grow its hybrid manufacturing/sourcing model, repurchase its
common stock and pursue selective strategic acquisitions.
Chromcraft Revington is a family of niche-oriented businesses that
designs, manufactures and sells residential and commercial furniture under the
"Chromcraft," "Peters-Revington," "Silver Furniture," "Cochrane Furniture" and
"Sumter Cabinet Company" brand names.
More.....................
Condensed Consolidated Statements of Earnings (unaudited)
Chromcraft Revington, Inc.
(In thousands, except per share data)
<Table>
<Caption>
Three Months Ended Nine Months Ended
------------------------------- -------------------------------
October 1, October 2, October 1, October 2,
2005 2004 2005 2004
------------- ------------- ------------- -------------
Sales $ 40,836 $ 41,658 $ 128,896 $ 130,763
------------- ------------- ------------- -------------
Gross margin 8,949 9,297 29,740 29,878
Selling, general and administrative expenses 6,720 5,881 20,301 20,342
------------- ------------- ------------- -------------
Operating income 2,229 3,416 9,439 9,536
Interest expense 342 204 660 590
------------- ------------- ------------- -------------
Earnings before income tax expense 1,887 3,212 8,779 8,946
Income tax expense 696 1,233 3,239 3,435
------------- ------------- ------------- -------------
Net earnings $ 1,191 $ 1,979 $ 5,540 $ 5,511
============= ============= ============= =============
Earnings per share of common stock
Basic $ .28 $ .48 $ 1.30 $ 1.33
Diluted $ .27 $ .47 $ 1.28 $ 1.31
Shares used in computing earnings
per share
Basic 4,322 4,155 4,253 4,132
Diluted 4,398 4,224 4,315 4,212
</Table>
More.....................
Condensed Consolidated Balance Sheets (unaudited)
Chromcraft Revington, Inc.
(In thousands)
<Table>
<Caption>
October 1, October 2, December 31,
2005 2004 2004
------------- ------------- -------------
Accounts receivable $ 22,257 $ 22,045 $ 18,133
Inventories 36,556 36,695 33,666
Prepaid expenses 2,660 2,065 1,971
------------- ------------- -------------
Current assets 61,473 60,805 53,770
Property, plant and equipment, net 30,664 33,107 32,490
Other long-term assets 804 823 776
------------- ------------- -------------
Total assets $ 92,941 $ 94,735 $ 87,036
============= ============= =============
Current portion of bank debt $ -- $ 5,000 $ --
Accounts payable 5,072 5,624 5,093
Accrued liabilities 9,073 9,536 8,623
------------- ------------- -------------
Current liabilities 14,145 20,160 13,716
Bank debt 4,390 9,050 5,700
Other long-term liabilities 3,949 5,076 4,711
------------- ------------- -------------
Total liabilities 22,484 34,286 24,127
Stockholders' equity 70,457 60,449 62,909
------------- ------------- -------------
Total liabilities and stockholders' equity $ 92,941 $ 94,735 $ 87,036
============= ============= =============
</Table>
More.....................
Condensed Consolidated Statements of Cash Flows (unaudited)
Chromcraft Revington, Inc.
(In thousands)
<Table>
<Caption>
Nine Months Ended
--------------------------------
October 1, October 2,
2005 2004
------------- -------------
Operating Activities
Net earnings $ 5,540 $ 5,511
Adjustments to reconcile net earnings to net
cash provided by (used in) operating activities
Depreciation expense 2,643 2,841
Loss on disposal of equipment 230 --
Deferred income taxes 372 (278)
Non-cash ESOP compensation expense 670 758
Stock compensation expense 184 149
Changes in assets and liabilities
Accounts receivable (4,124) (4,277)
Inventories (2,890) (5,827)
Prepaid expenses (1,216) (1,024)
Accounts payable and accrued liabilities 429 154
Other (571) 576
------------- -------------
Cash provided by (used in) operating activities 1,267 (1,417)
------------- -------------
Investing Activities
Capital expenditures, net (1,047) (787)
------------- -------------
Cash used in investing activities (1,047) (787)
------------- -------------
Financing Activities
Net borrowing under an unsecured bank revolving credit line 4,390 --
Net borrowing (repayment) under a secured bank revolving credit line (1,450) 5,750
Principal payments on a bank term loan (4,250) (3,750)
Stock repurchase from related party (754) --
Exercise of stock options, net of tax benefit 1,844 204
------------- -------------
Cash provided by (used in) financing activities (220) 2,204
------------- -------------
Change in cash -- --
Cash at beginning of period -- --
------------- -------------
Cash at end of period $ -- $ --
============= =============
</Table>