Saturday, April 21, 2012


Chromcraft Revington, Inc.  reported its results for the fourth quarter and year ended December 31, 2011. Sales for the fourth quarter of 2011 were $15.7 million or 19.0% higher than the prior quarter and 8.2% higher than the same period last year. The net loss for the fourth quarter of 2011 was $255,000, which was 75.5% lower than the prior quarter, marking the fourth consecutive quarter of reduced losses, and 90.5% lower than the loss in the same period in 2010.

Residential furniture shipments in the fourth quarter of 2011 were higher than the third quarter of 2011 primarily due to shipments of a new home entertainment product line which began shipping in the fourth quarter and increased sales of occasional and dining room furniture. Commercial sales increased in the fourth quarter of 2011 as compared to the prior quarter primarily due to increased sales of seating and table products. Despite the increases in residential sales in the fourth quarter, entering 2012 we continue to face the challenges resulting from weak consumer demand for residential furniture in our product categories and price segment, which we believe is consistent with industry trends; the continuing economic downturn which reflects the ongoing labor and housing market struggles and high consumer debt levels; and import competition.

Sales for the year ended December 31, 2011 were $55.3 million, a 1.8% decrease from the prior year. Shipments of residential furniture in 2011 were lower than 2010 primarily due to lower sales of occasional furniture, and to a lesser extent dining room furniture, partially offset by higher sales of bedroom furniture due to the introduction of a new bedroom line that began shipping in the second quarter of 2011. Commercial furniture shipments were higher in 2011 as compared to the prior year due to an increase in shipments of seating products to government agencies, higher education institutions and the health care industry.

The net loss for 2011 was $4.4 million, or 37.3% lower than 2010. The reduced loss for both the fourth quarter of 2011 and the year ended December 31, 2011 compared to the same periods in 2010 was primarily due to a reduction in selling, general and administrative expenses and a favorable product sales mix. The reduction in selling, general and administrative expenses in 2011 resulted primarily from lower marketing-related expenses in 2011; charges in 2010 for a fourth quarter asset impairment related to an information technology system which we determined was not recoverable and payments made to former sales executives for unearned commissions which were payable under their employment agreements; and a reversal in the fourth quarter of 2011 of an accrual for estimated environmental costs related to land that we sold in December 2011.

SOURCE: Business Wire



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