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FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended June 29, 1996 Commission File No. 0-11577
LADD FURNITURE, INC.
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(Exact name of registrant as specified in charter)
North Carolina 56-1311320
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(State or other juris- (I.R.S. Employer
diction of incorpora- Identification No.)
tion or organization)
One Plaza Center, Box HP-3, High Point, North Carolina 27261-1500
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(Address of principal executive offices) (Zip Code)
Registrants' telephone number, including area code: (910) 889-0333
_____________________
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
Yes x No
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______________________
As of August 12, 1996 there were 7,721,506 shares of Common Stock ($.30
par value) of the registrant outstanding.
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
LADD FURNITURE, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
For the thirteen weeks and twenty-six weeks ended June 29, 1996 and July 1, 1995
(Amounts in thousands, except per share data)
(Unaudited)
13 Weeks Ended 26 Weeks Ended
June 29, July 1, June 29, July 1,
1996 1995 1996 1995
Net sales $ 127,096 148,989 265,940 302,377
Cost of sales 103,553 133,492 222,817 260,052
Gross profit 23,543 15,497 43,123 42,325
Selling, general and
administrative expenses 19,110 28,335 40,898 52,151
Restructuring expense (Note 2) (279) 25,696 4,870 25,696
Operating income (loss) 4,712 (38,534) (2,645) (35,522)
Other deductions:
Interest expense 3,058 2,846 5,718 5,649
Other, net 597 2,687 2,239 2,861
3,655 5,533 7,957 8,510
Earnings (loss) before income taxes 1,057 (44,067) (10,602) (44,032)
Income tax benefit (108) (16,744) (4,772) (16,733)
Net earnings (loss) $ 1,165 (27,323) (5,830) (27,299)
Net earnings (loss) per common share $ 0.15 (3.54) (0.76) (3.54)
Weighted average number of
common shares outstanding 7,723 7,725 7,724 7,715
LADD FURNITURE, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
June 29, 1996 and December 30, 1995
(Amounts in thousands, except share data)
ASSETS
June 29,
1996 December 30,
(Unaudited) 1995 *
Current assets:
Cash $ 430 1,272
Trade accounts receivable, less allowances
for doubtful receivables, discounts,
returns and allowances of $5,876 and $4,057,
respectively 72,429 38,288
Inventories 94,394 89,466
Prepaid expenses and other current assets 17,179 13,663
Total current assets 184,432 142,689
Property, plant and equipment, net 82,633 82,586
Businesses held for sale, net - 8,052
Intangible and other assets, net 79,996 79,659
$347,061 312,986
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current installments of long-term debt $ 3,511 309
Short-term bank borrowings - 3,037
Trade accounts payable 31,373 28,419
Accrued expenses and other current liabilities 32,858 31,396
Total current liabilities 67,742 63,161
Long-term debt, excluding current installments 149,637 112,598
Deferred compensation and other liabilities 2,515 6,593
Deferred income taxes 7,530 5,437
Total liabilities 227,424 187,789
Shareholders' equity:
Preferred stock of $100 par value. Authorized
500,000 shares; no shares issued - -
Common stock of $.30 par value. Authorized
50,000,000 shares; issued 7,721,506 and
7,726,993 shares, respectively 2,316 2,318
Additional paid-in capital 49,774 49,905
Retained earnings 67,999 73,829
120,089 126,052
Less unamortized value of restricted stock (452) (855)
Total shareholders' equity 119,637 125,197
$347,061 312,986
* Derived from the Company's 1995 audited Consolidated Financial Statements.
LADD FURNITURE, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the twenty-six weeks ended June 29, 1996 and July 1, 1995
(Amounts in thousands)
(Unaudited)
26 Weeks Ended
June 29, July 1,
1996 1995
Cash flows from operating activities:
Net loss $(5,830) (27,299)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation of property, plant and equipment 5,446 7,214
Amortization 2,358 2,199
Restructuring expense 4,870 25,696
Provision for losses on trade accounts receivable 2,951 2,401
Gain on sales of property, plant and equipment (42) (136)
Provision for deferred income taxes (2,585) (14,650)
Increase (decrease) in deferred compensation and
other liabilities (2,918) 561
Change in assets and liabilities, net of divestitures
and classification of businesses held for sale:
(Increase) decrease in trade accounts receivable 394 (4,293)
(Increase) decrease in inventories (4,493) 7,266
(Increase) decrease in prepaid expenses and
other current assets 1,444 (460)
Increase (decrease) in trade accounts payable 3,277 (123)
Increase (decrease) in accrued expenses and other
current liabilities (2,131) 6,082
Total adjustments 8,571 31,757
Net cash provided by operating activities 2,741 4,458
Cash flows from investing activities:
Additions to property, plant and equipment (5,610) (6,732)
Purchase of leased manufacturing equipment (4,648) -
Proceeds from sales of property, plant and equipment 137 75
Proceeds from sale of business, net of transaction expenses 5,284 -
(Additions to) reduction in other assets 212 (1,121)
Net cash used in investing activities (4,625) (7,778)
Cash flows from financing activities:
Proceeds from long-term borrowings 39,855 2,131
Proceeds from (repayments of) short-term bank borrowings 1,963 (3,050)
Proceeds (repayments) from sales of accounts receivable (36,000) 315
Proceeds from sale leaseback of equipment - 6,691
Principal payments of long-term debt (4,633) (497)
Dividends paid - (1,390)
Other (133) 7
Net cash provided by financing activites 1,052 4,207
Effect of exchange rate changes on cash (10) (57)
Net increase (decrease) in cash (842) 830
Cash at beginning of period 1,272 576
Cash at end of period $ 430 1,406
Supplemental disclosures of cash flow information:
Cash paid during the period for interest $ 6,345 5,585
Cash paid during the period for income taxes 16 319
LADD FURNITURE, INC. AND SUBSIDIARIES
Consolidated Statements of Shareholders' Equity
(Amounts in thousands, except share data)
Currency Unamortized
Number Additional trans- value of Total
of shares Common paid-in lation Retained restricted shareholders'
issued stock capital adjustment earnings stock equity
BALANCE AT DECEMBER 31, 1994 7,700,152 $2,310 $49,516 (208) 101,105 (817) 151,906
Purchase of restricted
stock (2,452) (1) (68) - - 68 (1)
Shares issued in connection
with and amortization of
employee restricted
stock awards 29,294 9 457 - - (106) 360
Currency translation
adjustment - - - (66) - - (66)
Reclassification to businesses
held for sale - - - 274 - - 274
Net loss - - - - (25,190) - (25,190)
Dividends paid - - - - (2,086) - (2,086)
BALANCE AT DECEMBER 30, 1995 7,726,993 2,318 49,905 0 73,829 (855) 125,197
Purchase of restricted
stock (5,487) (2) (131) - - 131 (2)
Amortization of employee
restricted stock awards - - - - - 272 272
Net loss - - - - (5,830) - (5,830)
BALANCE AT JUNE 29, 1996
(UNAUDITED) 7,721,506 $2,316 49,774 0 67,999 (452) 119,637
Notes:
(1) Quarterly Financial Data
The quarterly consolidated financial data are unaudited but include,
in the opinion of management, all adjustments necessary for a fair
statement of the operating results for the interim periods
indicated. All adjustments are of a normal recurring nature except
as disclosed in Notes 2 and 5 to the financial statements.
(2) Restructuring
In June 1995, the Company recorded a $25.7 million non-cash
restructuring charge. The restructuring charge resulted from the
Company's decision to divest four operating companies (businesses
held for sale), close four Company-owned retail stores and
reorganize the remaining companies to improve operating performance.
During the first quarter of 1996, the Company recorded a $5.1
million non-cash restructuring charge resulting from the continued
reorganization of the Company's remaining businesses and the further
write-down of the Company's businesses sold or held for sale to
their estimated fair value, less disposition costs. The
restructuring charge in the first quarter of 1996 was a result of:
(i) the Company's decision to liquidate Daystrom Furniture; (ii) a
shortfall in the net proceeds anticipated from selling Fournier
Furniture; and (iii) additional severance expense relating to the
continued restructuring of the Company's remaining businesses. The
severance expense included a $130,000 adjustment to shareholders'
equity for the vesting of restricted stock.
During the second quarter of 1996, the estimated liquidation value
of Daystrom Furniture was further adjusted by a credit to
restructuring expense. Further, the reserve related to the write
down of the net assets of Daystrom Furniture to their estimated fair
value was reclassified to the appropriate asset and liability
accounts as follows (i) $1,950,000 to accrue for severance,
environmental clean-up costs, plant closing costs and other
miscellaneous expenses and (ii) $440,000 to provide for estimated
bad debts. Additionally, the net property, plant and equipment of
Daystrom was reclassified to "Intangible and other assets" and
recorded at its estimated liquidation value of approximately
$1,750,000.
The following unaudited pro forma information shows consolidated
operating results for the periods presented as though the Company
had divested the four businesses and closed its company-owned retail
stores as of January 1, 1995, excluding the restructuring expense
recorded during the second quarter of 1995 and the first six months
of 1996:
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13 Weeks Ended 26 Weeks Ended
June 29, July 1, June 29, July 1,
1996 1995 1996 1995
Net sales $122,411 119,935 250,681 246,301
Earnings (loss) before
interest and income taxes 4,831 (12,699) 3,140 (9,081)
The costs charged against restructuring reserves during 1996 are as
follows (in thousands):
Restructuring reserves, December 30, 1995 $ 3,964
First quarter 1996 reserve additions 815
Second quarter 1996 Daystrom reclassification 2,390
Costs:
Write-off leasehold improvements (129)
Lease termination costs (201)
Severance (964)
Other (461)
Restructuring reserves, June 29, 1996 $ 5,414
(3) Inventories
A summary of inventories follows (in thousands):
June 29, December 30,
1996 1995
Inventories on the FIFO
cost method:
Finished goods $ 53,460 50,847
Work in process 16,605 17,165
Raw materials and supplies 36,204 33,140
Total inventories on
the FIFO cost method 106,269 101,152
Less adjustments of certain inven-
tories to the LIFO cost method (11,875) (11,686)
$ 94,394 89,466
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(4) Trade Accounts Receivable Securitization Program
On March 28, 1996, the Company's trade accounts receivable
securitization program (the Securitization Program) was terminated.
The funds previously provided by the Securitization Program have
been replaced by borrowings available under the revolving credit
line of the Company's bank credit facility. At December 30, 1995,
trade accounts receivable sold under the Securitization Program
and excluded from the consolidated balance sheet totaled
$36.0 million.
(5) Postretirement Benefits Other Than Pensions
On May 10, 1996, the Company curtailed the postretirement features
of its health care benefit program, effective July 1, 1996, in an
effort to reduce operating costs. The effect of this action was to
eliminate the Company's financial obligation for postretirement
healthcare costs. As a result of the benefit curtailment, during
the second quarter of 1996 the Company eliminated a noncurrent
liability of approximately $4.2 million which existed at March 30,
1996 resulting in a credit to operating income ($3.7 million to cost of
sales and $0.5 million to selling, general and administrative
expense). The remaining liability balance of approximately $1.1
million was reclassified as a current liability. The curtailment of
retiree health care benefits will result in an annual cost savings
of over $2.0 million, of which approximately $1.2 million will be
cash.
(6) Subsequent Event
On July 12, 1996, the Company entered into a $190.0 million long-term
secured credit facility (the Facility) which consists of a
$125.0 million three-year revolving credit loan and a $65.0 million term
loan. The term loan portion of the Facility will be repaid in
quarterly installments of $1,625,000 commencing January 1, 1997.
Outstanding balances of long-term debt and short-term bank
borrowings at June 29, 1996 which were refinanced by the Facility
have been reclassified in the June 29, 1996 consolidated balance
sheet to reflect the terms of the Facility.
Borrowings under the revolving credit loan and the term loan bear
interest at rates selected periodically by the Company of LIBOR
plus 2.75% and 3.00%, respectively, or prime plus 1.75% and 2.00%,
respectively. At June 29, 1996, LIBOR was 5.582% and the prime rate
was 8.25%. Under the Facility, the Company pays a commitment fee of
1/2% per annum on the unused portion of the revolving credit facility.
In connection with the refinancing, the Company incurred fees and
expenses aggregating approximately $4.0 million which will be
amortized over the term of the Facility. At current borrowing
levels and market interest rates, the effect of the Facility will be
to increase interest expense and lower profit before income taxes by
approximately $1.1 million annually.
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The Facility is secured by substantially all the existing and
hereafter acquired assets of the Company. Availability on the
revolving credit loan is determined by levels of eligible inventory
and eligible trade accounts receivable of the Company. The Facility
contains customary covenants for asset based loans which restrict
future borrowings, dividends and capital spending; require
maintenance of a minimum net worth; and include financial covenant
ratios related to cash flow, earnings and debt.
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Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
Results of Operations
The following table sets forth the percentage relationship of net
sales to certain items included in the Consolidated Statements of
Operations:
13 Weeks Ended 26 Weeks Ended
June 29, July 1, June 29, July 1,
1996 1995 1996 1995
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of sales 81.5 89.6 83.8 86.0
Gross profit 18.5 10.4 16.2 14.0
Selling, general and
administrative expenses 15.0 19.0 15.4 17.2
Restructuring expense (0.2) 17.3 1.8 8.5
Operating income (loss) 3.7 (25.9) (1.0) (11.7)
Other deductions
Interest expense 2.4 1.9 2.2 1.9
Other, net 0.5 1.8 .8 .9
2.9 3.7 3.0 2.8
Earnings (loss) before
income taxes 0.8 (29.6) (4.0) (14.5)
Income tax benefit (0.1) (11.2) (1.8) (5.5)
Net earnings (loss) 0.9% (18.4)% (2.2)% (9.0)%
Net sales for the second quarter and first six months of 1996 were
$127.1 million and $265.9 million, respectively, compared with $149.0
million and $302.4 million during the comparable 1995 periods. Net sales
in 1996 decreased from prior year levels primarily due to the sale of
Brown Jordan Company and Lea Lumber and Plywood as of December 29, 1995,
the sale of Fournier Furniture as of February 26, 1996, and the
liquidation of Daystrom Furniture. On a pro forma basis, excluding the
four divestiture companies, 1996 second quarter and year-to-date net
sales would have each increased from prior year levels by approximately
2.0%.
Cost of sales as a percentage of net sales decreased to 81.5% for the
second quarter of 1996 and 83.8% for the year-to-date, compared to 89.6%
and 86.0%, respectively, in 1995. This decrease resulted in an increase
in gross profit margins to 18.5% for the second quarter and 16.2% for the
year-to-date, from 10.4% and 14.0%, respectively, in 1995. The decrease
in cost of sales for the current quarter and year-to-date was partially
attributable to a $3.7 million non-cash credit to operations resulting
from the Company's curtailment of retiree health care benefits (see note
5). This credit was somewhat offset during the quarter by additional
reserves recorded for discontinued products, and depressed margins
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relating to the liquidation of Daystrom Furniture's inventory. The gross
margins for the second quarter of 1995 were depressed due to increase
reserves for slow-moving and discontinued product lines.
Selling, general and administrative (SG&A) expenses decreased to
15.0% of net sales for the second quarter of 1996 from 19.0% for the same
period in 1995, while first half SG&A expenses decreased to 15.4% from
17.2% in 1995. The second quarter 1996 SG&A expense reflects benefits
from cost savings actions initiated by the Company during the
first quarter of 1996. These actions included a reduction in salaried
employees, consolidation of certain administrative functions, and
cutbacks in advertising. During the second quarter of 1995, the Company
recorded a $2.3 million non-cash charge to increase bad debt reserves,
and to provide for other miscellaneous expenses.
During the first quarter of 1996, a $5.1 non-cash restructuring charge
was recorded as a result of: (i) the Company's decision to liquidate
Daystrom Furniture; (ii) a shortfall in the actual versus anticipated net
proceeds from selling Fournier Furniture; and (iii) additional severance
expense relating to the continued restructuring of the Company's
remaining businesses. A restructuring credit of $0.3 million was
recorded in the second quarter of 1996.
The $25.7 million restructuring expense incurred in the second quarter of
1995 resulted from the Company's decision to divest four operating
companies and restructure its remaining operating companies to improve
their operating performance. The reserves included a non-cash charge to
write-down the businesses held for sale to the lower of carrying value or
estimated fair value, to provide for expected losses from the closing of
four Company-owned retail stores, to write-down discontinued machinery
due to changes in manufacturing processes, and to provide for severance
expense and other costs.
Other deductions were 2.9% of net sales for the second quarter and
3.0% for the first six months of 1996, compared to 3.7% and 2.8%,
respectively, in 1995. The decrease in the amount of other deductions
was offset by an increase in interest expense resulting from an increase
in the average outstanding borrowings, coupled with an increase in the
quarterly and first six months effective interest rates compared to the
same periods of 1995. Also, included in other deductions in the second
quarter of 1995 were non-cash charges totaling $2.2 million attributable
to the write-off of unamortized bank financing fees and other noncurrent
assets, and the recognition of other liabilities.
During the first half of 1996, the Company's loss before income taxes
was $10.6 million, compared to a loss before income taxes of $44.0
million for the year-earlier period. The Company's estimated annual
effective income tax rate for the first half of 1996 was 45.0%, as
compared to a 38.0% estimated annual rate for the first half of 1995.
The differences in the tax rates for the respective periods result from
various permanent taxable income, deductions, or credit items that
increase or decrease the normal U.S. Federal tax rate of 34.0% when
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applied to the Company's estimated annualized pre-tax income or loss
during each interim period, or actual annual pre-tax income or loss in
the case of each fiscal year end.
The Company's net income was $1.2 million, or $0.15 per share, for
the second quarter of 1996, compared with a net loss of $27.3 million, or
$3.54 per share for the same quarter of 1995. The first half net loss
was $5.8 million, or $0.76 per share for 1996, compared with a net loss
of $27.3 million, or $3.54 per share, for 1995.
Liquidity and Capital Resources
Effective March 28, 1996, the Company's trade accounts receivable
securitization program was terminated in anticipation of refinancing the
Company's then existing long-term credit facility. At December 30, 1995,
the Company had generated cash of $36.0 million from the securitization
program which was subsequently replaced with borrowings under the
Company's long-term credit facility.
Primarily as a result of refinancing the accounts receivable
securitization program with long-term debt, the current ratio at June 29,
1996 increased to 2.7 to 1 from 2.3 to 1 at December 30, 1995, and net
working capital increased to $116.7 million at June 29, 1996 from $79.5
million at December 30, 1995.
During the first half of 1996, the Company generated cash from
operating activities of $2.7 million, compared to $4.5 million in the
1995 period. The cash generated during the first half of 1996 was
primarily from the net loss plus depreciation and amortization, while the
cash generated in the first half of 1995 was primarily due to a decrease
in working capital.
During the first six months of 1996, capital spending totaled $5.6
million, down from $6.7 million during the same period in 1995. The
Company's total 1996 capital expenditures are expected to approximate the
current annual depreciation rate of almost $11.0 million. The majority
of the capital spending during the first half of both 1995 and 1996 was
to complete capital projects initiated in the prior fiscal years.
On July 12, 1996, the Company completed the refinancing of its
long-term and short-term bank credit facility. The new credit facility (the
Facility) consists of a $125.0 million three-year revolving credit loan and
a $65.0 million term loan. The Facility is secured by substantially
all the assets of the Company, including equipment,
inventory, receivables and real property. Borrowings under
the Facility bear interest at rates above the Company's borrowing
rate in effect at June 29, 1996. At current borrowing levels
and market interest rates, expected interest expense under the
Facility will lower profit before income taxes by approximately
$1.1 million annually. The term loan under the Facility will be repaid
in quarterly installments of $1,625,000 commencing January 1, 1997. In
anticipation of the refinancing, $890,000 of unamortized financing costs
were charged to operations during the first quarter of 1996.
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At June 29, 1996 (giving effect to
the above mentioned refinancing), the Company had $147.3 of bank borrowings,
comprised of a $65.0 million secured term
loan and a $82.3 million secured revolving credit loan.
Additionally, the Company had approximately $5.8
million outstanding in other long-term indebtedness at June 29, 1996,
primarily fixed-rate industrial revenue bonds. Total long-term and
short-term debt (funded debt) represented 54.1% of total capitalization
at June 29, 1996, compared to 45.8% of total capitalization at December
30, 1995. At June 29, 1996, the Company had $35.9 million in unused
long-term revolving bank credit lines, of which $19.6 million was
currently available to meet future cash requirements.
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PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
The annual meeting of shareholders of the Company was held in
High Point, North Carolina on May 2, 1996. Of the 7,724,259
shares of common stock outstanding on the record date,
6,704,306 shares were present in person or by proxy. Those
shares were voted on the following matters as set forth below:
A. Election of Directors:
Richard R. Allen Fred L. Schuermann, Jr.
For: 6,608,474 For: 6,612,372
Abstentions: 95,832 Abstentions: 91,934
Broker Non-Votes: 0 Broker Non-Votes: 0
William B. Cash Don A. Hunziker
For: 6,607,868 For: 6,608,802
Abstentions: 96,438 Abstentions: 95,504
Broker Non-Votes: 0 Broker Non-Votes: 0
James H. Corrigan, Jr. Thomas F. Keller
For: 6,609,600 For: 6,610,138
Abstentions: 94,706 Abstentions: 94,168
Broker Non-Votes: 0 Broker Non-Votes: 0
O. William Fenn, Jr. L. Glenn Orr, Jr.
For: 6,610,302 For: 6,611,205
Abstentions: 94,004 Abstentions: 93,101
Broker Non-Votes: 0 Broker Non-Votes: 0
B. Proposal to approve the amendment to the Company's 1994
Incentive Stock Option Plan:
For: 4,739,417
Against: 678,440
Abstentions: 13,155
Broker Non-votes: 1,273,294
C. Proposal to ratify the election of KPMG Peat Marwick LLP as
independent auditors of the Company for 1996:
For: 6,677,969
Against: 17,390
Abstentions: 8,947
Broker Non-votes: 0
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Item 5. Other Information
On July 12, 1996, the Company entered into a $190.0 million
long-term secured credit facility (the Facility) which consists
of a $125.0 million three-year revolving credit loan and a
$65.0 million term loan. The term loan portion of the Facility
will be repaid in quarterly installments of $1,625,000
commencing January 1, 1997. Outstanding balances of long-term
debt and short-term bank borrowings at June 29, 1996 which were
refinanced by the Facility have been reclassified in the June
29, 1996 consolidated balance sheet to reflect the terms of the
Facility.
Borrowings under the revolving credit loan and the term loan
bear interest at rates selected periodically by the Company of
LIBOR plus 2.75% and 3.00%, respectively, or prime plus 1.75%
and 2.00%, respectively. At June 29, 1996, LIBOR was 5.582%
and the prime rate was 8.25%. Under the Facility, the Company
pays a commitment fee of 1/2% per annum on the unused portion of
the revolving credit facility. In connection with the
refinancing, the Company incurred fees and expenses aggregating
approximately $4.0 million which will be amortized over the
term of the Facility. At current borrowing levels and market
interest rates, the effect of the Facility will be to increase
interest expense and lower profit before income taxes by
approximately $1.1 million annually.
The Facility is secured by substantially all the existing and
hereafter acquired assets of the Company. Availability on the
revolving credit loan is determined by levels of eligible
inventory and eligible trade accounts receivable of the
Company. The Facility contains customary covenants for asset
based loans which restrict future borrowings, dividends and
capital spending; require maintenance of a minimum net worth;
and include financial covenant ratios related to cash flow,
earnings and debt.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
During the quarter, the Company filed a Form 8-K dated
March 28, 1996 with the Commission on May 8, 1996 which
reported under Item 5 (i) the Release and Termination
Agreement among LADD Furniture, Inc., LADD Funding
Corporation and Enterprise Corporation; (ii) Amendment and
Waiver Agreement among LADD Furniture, Inc., NationsBank,
N.A. f/k/a NationsBank, N.A. (Carolinas), f/k/a
NationsBank of North Carolina, N.A., as Agent, certain
identified guarantors and certain identified banks; and
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(iii) Press Release reporting the Company's first quarter
1996 results of operations.
During the quarter, the Company filed a Form 8-K dated
June 14, 1996 with the Commission on June 21, 1996 which
reported under Item 5 an Amendment and Waiver Agreement
No. 2 among LADD Furniture, Inc., NationsBank, N.A. f/k/a
NationsBank, N.A. (Carolinas), f/k/a NationsBank of North
Carolina, N.A., as Agent, certain identified guarantors
and certain identified banks.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
LADD Furniture, Inc.
Date: August 13, 1996 By: s/William S. Creekmuir
William S. Creekmuir
Executive Vice President
and Chief Financial Officer
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