LADD NEWS RELEASE
Furniture, Inc. FOR IMMEDIATE RELEASE
4620 Grandover Parkway - Box 26777 April 20, 1998
Greensboro, NC 27417-6777 Contact: John J. Ong
(336) 315-4049
E-mail:jong@laddnet.com
LADD REPORTS SHARP FIRST QUARTER EARNINGS GAIN
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GREENSBORO, NC--LADD Furniture, Inc. today reported a 19 percent increase
in its 1998 first quarter net sales and a 350 percent earnings increase compared
to the first quarter of 1997. For the three months ended April 4, 1998, net
sales totaled $147.4 million, up from $123.4 million in the first quarter of
1997. Net earnings for 1998's initial quarter were $2.4 million, or $0.30 per
share, compared to $520,000, or $0.07 per share, in the first quarter of fiscal
1997.
LADD president and CEO Fred L. Schuermann, Jr. said, "This year has started
out very well for our industry, with retail furniture sales around the country
showing excellent year-over-year gains, and LADD participated fully in this
strength during the first quarter. We were especially pleased with the
acceleration in our residential furniture sales, particularly casegoods (wood
furniture), where first quarter sales rose nearly 18 percent compared to the
same period of 1997."
Schuermann added that LADD's residential upholstery sales for the first
quarter were 8 percent higher than in the same period of 1997. He attributed the
sales gains to a combination of attractive new LADD product lines, an expanded
market presence and the general improvement experienced by the industry. "It was
especially gratifying to see our residential furniture orders increase more than
25 percent in the first quarter. Reflecting this strong order inflow, our
residential order backlog ended the quarter 35 percent ahead of its year-earlier
level." He noted that the company's contract furniture business, American of
Martinsville, continues to do extremely well, with its first quarter sales
rising 41 percent.
Schuermann added, "We are pleased with the strong earnings gain achieved in
the first quarter, although LADD's profitability levels remain below
management's long-term goals. We are continuing to work hard on strengthening
our margins moving forward." Referring to the International Home Furnishings
Market, which begins this week in High Point, NC, he said, "Everything we are
currently seeing and hearing suggests the upcoming furniture market should be a
good one. If so, and if we are as successful with our new market introductions
as we anticipate, this will have a continuing positive impact on LADD's sales
momentum in the second half of 1998 and on into 1999."
-over-
The LADD family of fine furniture companies
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Lea Industries (bullet) American Drew (bullet) Clayton Marcus
Barclay (bullet) American of Martinsville (bullet) Pennsylvania House (bullet)
Pilliod
Executive vice president and chief financial officer William S. Creekmuir
reported that LADD's total debt declined to $120.9 million at April 4, 1998 from
$125.4 million three months earlier and $129.4 million at the end of 1997's
first quarter. Creedmuir said, "We are continuing to make steady progress toward
reducing the company's financial leverage." Creekmuir added that, due to the
lower debt level and interest rate reductions, LADD's first quarter interest
expense declined by $421,000 or 14 percent compared to the first quarter of
1997.
Headquartered in Greensboro, NC, LADD is one of the largest North American
manufacturers of residential furniture. The company markets its wide range of
residential wood and upholstered furniture domestically under the major brand
names American Drew, Barclay, Clayton Marcus, Lea, Pennsylvania House and
Pilliod, and exports these same brand name products worldwide through LADD
International. Under the American of Martinsville name, LADD is also one of the
world's leading suppliers of guest room furniture to the hotel industry, as well
as to health care and assisted-living facilities and governmental markets. LADD
also owns and operates LADD Transportation, a support company. LADD's stock is
traded on the Nasdaq National Market under the symbol LADF and information on
the company can be found on the Internet at www.laddfurniture.com.
TABLE FOLLOWS
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FORWARD-LOOKING STATEMENTS: This news release contains forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act of
1934. Such statements are dependent on a number of factors which could cause
actual results to differ materially from those expressed or implied in the
forward-looking statements. Such factors include anticipated sales growth
resulting from a more robust retailing climate and the company's new product
introductions, in addition to those factors set forth in the company's required
filings with the U.S. Securities and Exchange Commission.
NOTE: To receive fax copies of recent LADD news releases free of charge, just
dial 800-758-5804, extension 501325. These releases are also available via the
company's Internet site at www.laddfurniture.com ("company news").
LADD FURNITURE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (PRELIMINARY AND UNAUDITED)
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Quarter Ended
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Mar. 29, 1997 Apr. 4, 1998
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Net sales* $ 123,368,000 147,409,000
Earnings before interest and income taxes 3,858,000 6,452,000
Interest expense 3,005,000 2,584,000
Earnings before income taxes 853,000 3,868,000
Income tax expense 333,000 1,508,000
Net earnings $ 520,000 2,360,000
Net earnings per common share - basic $ 0.07 0.30
Net earnings per common share - diluted $ 0.07 0.30
Weighted average number of
common shares outstanding 7,719,567 7,759,955
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*Net sales by business group were as follows (000's):
Quarter Ended
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Mar. 29, 1997 Apr. 4, 1998
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Casegoods $ 68,550 80,582
Upholstrey 31,573 34,123
Contract 23,245 32,704
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Total $ 123,368 147,409
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