Exhibit 99.1
For Immediate Release For more information contact:
Monday, July 31, 2006 Frank T. Kane, Vice President & CFO
Chromcraft Revington, Inc.
Reports Second Quarter and First Half Results
Delphi, Indiana, July 31, 2006 - Chromcraft Revington, Inc. (AMEX: CRC)
today reported sales for the three months ended July 1, 2006 of $40,320,000,
representing a 7.1% decrease as compared to sales of $43,401,000 for the prior
year period. Second quarter shipments of occasional, bedroom, dining room and
commercial furniture were lower than the prior year period while shipments of
upholstered furniture were slightly higher. Net earnings for the second quarter
of 2006 were $676,000, or $.15 per share on a diluted basis, as compared to
$2,093,000, or $.48 per share on a diluted basis, for the same period last year.
For the six months ended July 1, 2006, sales were $86,241,000, representing
a 2.1% decrease as compared to sales of $88,060,000 for the prior year period.
For the first half of 2006, lower shipments of bedroom, commercial and dining
room furniture were partially offset by higher sales of occasional and
upholstered furniture. Net earnings for the six months ended July 1, 2006 were
$1,805,000, or $.40 per share on a diluted basis, as compared to $4,349,000, or
$1.01 per share on a diluted basis, for the year ago period.
Commenting on these results, Frank T. Kane, Vice President and Chief
Financial Officer, said that the sales decline in both periods was primarily
attributable to reduced shipments of bedroom furniture due to competitive
pressure. He added that net earnings for 2006 were primarily impacted by a
reduced domestic production level which affected fixed cost absorption and
manufacturing efficiencies, an unfavorable sales mix, and higher manufacturing,
selling and administrative costs. He commented that sales results for 2006
reflect increased shipments of imported finished furniture as compared to the
prior year period. Kane pointed out that the Company's financial position
remained strong with available cash and no bank borrowings at quarter end.
Looking forward, Benjamin M. Anderson-Ray, Chairman and Chief Executive
Officer, noted that the Company recently consolidated its occasional and casual
dining furniture sales forces to provide improved service and to build stronger
relationships with customers. Anderson-Ray said, "By combining the sales forces
of the Chromcraft, Peters-Revington and Silver Furniture brands, we will provide
customers more unified, dedicated and stronger sales representation as well as a
wider selection of products." He also stated that a goal of the integration of
the sales organizations is to expand distribution coverage and improve sales
effectiveness. He added that the unified sales force will be fully focused on
the sales growth of these product lines.
Anderson-Ray also commented on the strategic direction of the Company as it
continues to adapt to the global furniture marketplace. He stated that the
Company is committed to leveraging a hybrid strategy utilizing significantly
greater global sourcing combined with value added U.S. assembly and distribution
operations to provide customers with value, product selection and service. The
Company continues to increase its global sourcing of lower cost furniture parts
and finished goods to improve its overall consumer and customer value
proposition. In addition, he noted that the Company's expanded domestic
build-to-order furniture programs have been well received and are growing
consistently. Anderson-Ray pointed out that as the Company adapts to the global
furniture market and shifts its focus to increased utilization of a global
supply chain, restructuring charges, asset impairments, transition costs and/or
increased operating expenses may be necessary in the future.
Chromcraft Revington businesses design, manufacture and market residential
and commercial furniture throughout the United States. The Company wholesales
its products under the
"Chromcraft," "Peters-Revington," "Silver Furniture," "Cochrane Furniture" and
"Sumter" brand names.
This release contains forward-looking statements that are based on current
expectations and assumptions. These forward-looking statements can be generally
identified as such because they include future tense or dates, or are not
historical or current facts, or include words such as "believes," "may,"
"expects" or words of similar import. Forward-looking statements are not
guarantees of performance or outcomes and are subject to certain risks and
uncertainties that could cause actual results or outcomes to differ materially
from those reported, expected or anticipated as of the date of this release.
Among such risks and uncertainties that could cause actual results or
outcomes to differ materially from those reported, expected or anticipated are
general economic conditions; import and domestic competition in the furniture
industry; execution of business strategies; market interest rates; consumer
confidence levels; cyclical nature of the furniture industry; consumer and
business spending; changes in relationships with customers; customer acceptance
of existing and new products; new and existing home sales; and other factors
that generally affect business. An additional list of risks relating to the
Company's business is located in the Company's Form 10-K for the fiscal year
ended December 31, 2005.
The Company does not undertake any obligation to update or revise publicly
any forward-looking statements to reflect information, events or circumstances
after the date of such statements or to reflect the occurrence of anticipated or
unanticipated events or circumstances.
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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 1, July 2, July 1, July 2,
2006 2005 2006 2005
------- ------- ------- -------
Sales $40,320 $43,401 $86,241 $88,060
------- ------- ------- -------
Gross margin 8,115 10,232 17,127 20,791
Selling, general and administrative expenses 6,922 6,752 14,048 13,581
------- ------- ------- -------
Operating income 1,193 3,480 3,079 7,210
Interest expense 53 164 130 318
------- ------- ------- -------
Earnings before income tax expense 1,140 3,316 2,949 6,892
Income tax expense 464 1,223 1,144 2,543
------- ------- ------- -------
Net earnings $ 676 $ 2,093 $ 1,805 $ 4,349
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Earnings per share of common stock
Basic $ .15 $ .49 $ .41 $ 1.02
Diluted $ .15 $ .48 $ .40 $ 1.01
Shares used in computing earnings per share
Basic 4,406 4,299 4,398 4,253
Diluted 4,467 4,340 4,460 4,306
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Condensed Consolidated Balance Sheets (unaudited)
Chromcraft Revington, Inc.
(In thousands)
July 1, July 2, December 31,
2006 2005 2005
------- ------- -------
Cash and cash equivalents $ 2,755 $ - $ -
Accounts receivable 19,112 20,085 18,735
Inventories 37,174 36,157 37,009
Prepaid expenses and other 1,770 2,351 1,922
------- ------- -------
Current assets 60,811 58,593 57,666
Property, plant and equipment, net 29,375 31,200 30,274
Deferred income taxes and other long-term assets 924 818 1,319
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Total assets $91,110 $90,611 $89,259
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Accounts payable $ 4,604 $ 5,316 $ 5,448
Accrued liabilities 8,278 8,433 7,340
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Current liabilities 12,882 13,749 12,788
Bank debt - 4,100 -
Deferred compensation 1,813 2,593 2,486
Other long-term liabilities 1,267 1,658 1,323
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Total liabilities 15,962 22,100 16,597
Stockholders' equity 75,148 68,511 72,662
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Total liabilities and stockholders' equity $91,110 $90,611 $89,259
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Condensed Consolidated Statements of Cash Flows (unaudited)
Chromcraft Revington, Inc.
(In thousands)
Six Months Ended
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July 1, July 2,
2006 2005
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Operating Activities
Net earnings $ 1,805 $ 4,349
Adjustments to reconcile net earnings to net
cash provided by operating activities
Depreciation expense 1,668 1,822
Non-cash ESOP compensation expense 438 432
Non-cash stock compensation expense 243 65
Deferred income taxes 62 298
Loss on disposal of property, plant and equipment 19 232
Changes in operating assets and liabilities
Accounts receivable (377) (1,952)
Inventories (165) (2,491)
Prepaid expenses and other 152 (810)
Accounts payable and accrued liabilities 65 33
Deferred compensation and other long-term assets
and liabilities (367) (316)
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Cash provided by operating activities 3,543 1,662
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Investing Activities
Capital expenditures, net (788) (764)
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Cash used in investing activities (788) (764)
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Financing Activities
Net borrowings under a bank revolving credit line - 2,650
Principal payments on a bank term loan - (4,250)
Stock repurchase from related party - (754)
Exercise of stock options, net of tax benefit - 1,456
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Cash used in financing activities - (898)
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Change in cash and cash equivalents 2,755 -
Cash and cash equivalents at beginning of period - -
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Cash and cash equivalents at end of period $ 2,755 $ -
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