Virginia
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54-0251350
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(State or other jurisdiction of incorporation or organization)
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(IRS employer identification no.)
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440 East Commonwealth Boulevard, Martinsville, VA 24112 | ||
(Address of principal executive offices, zip code) | ||
(276) 632-0459 | ||
(Registrant’s telephone number, including area code) |
Large accelerated filer
o
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Accelerated filer
x
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Non-accelerated filer
o
(
(
Do not check if smaller reporting company)
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Smaller reporting company
o
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PART I. FINANCIAL INFORMATION | ||
Item 1.
|
3
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Item 2.
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14
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|
Item 3.
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26
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Item 4.
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27
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PART II. OTHER INFORMATION | ||
Item 6.
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28
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29
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October 31,
|
January 31,
|
|||||||
2010
|
2010
|
|||||||
Assets
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$ | 20,460 | $ | 37,995 | ||||
Accounts receivable, less allowance for doubtful accounts
|
||||||||
of
$2,004
and $1,938 on each date
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28,409 | 25,894 | ||||||
Inventories
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55,622 | 36,176 | ||||||
Prepaid expenses and other current assets
|
5,457 | 3,468 | ||||||
Total current assets
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109,948 | 103,533 | ||||||
Property, plant, and equipment, net
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21,173 | 22,747 | ||||||
Intangible assets
|
3,468 | 3,468 | ||||||
Cash surrender value of life insurance policies
|
14,560 | 14,810 | ||||||
Other assets
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4,691 | 4,541 | ||||||
Total assets
|
$ | 153,840 | $ | 149,099 | ||||
Liabilities and Shareholders' Equity
|
||||||||
Current Liabilities
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||||||||
Trade accounts payable
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$ | 14,264 | $ | 10,425 | ||||
Accrued salaries, wages and benefits
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2,427 | 2,184 | ||||||
Other accrued expenses
|
1,662 | 1,953 | ||||||
Accrued dividends
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1,077 | 1,077 | ||||||
Total current liabilities
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19,430 | 15,639 | ||||||
Deferred compensation
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6,682 | 5,868 | ||||||
Total liabilities
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26,112 | 21,507 | ||||||
Shareholders' equity
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||||||||
Common stock, no par value,
20,000
shares authorized,
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||||||||
10,782
and 10,775 shares issued and outstanding on each date, respectively.
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17,134 | 17,076 | ||||||
Retained earnings
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110,261 | 110,073 | ||||||
Accumulated other comprehensive income
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333 | 443 | ||||||
Total shareholders' equity
|
127,728 | 127,592 | ||||||
Total liabilities and shareholders' equity
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$ | 153,840 | $ | 149,099 |
Thirteen Weeks Ended
|
Thirty-Nine Weeks Ended
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|||||||||||||||
October 31,
|
November 1,
|
October 31,
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November 1,
|
|||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Net sales
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$ | 55,735 | $ | 52,605 | $ | 160,465 | $ | 150,646 | ||||||||
Cost of sales
|
43,460 | 39,928 | 123,965 | 117,047 | ||||||||||||
Casualty loss
|
- | - | 2,208 | - | ||||||||||||
Insurance recovery
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- | - | (1,708 | ) | - | |||||||||||
Total cost of sales
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43,460 | 39,928 | 124,465 | 117,047 | ||||||||||||
Gross profit
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12,275 | 12,677 | 36,000 | 33,599 | ||||||||||||
Selling and administrative expenses
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10,610 | 10,894 | 31,060 | 32,329 | ||||||||||||
Asset impairment charge
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- | - | - | 613 | ||||||||||||
Operating income
|
1,665 | 1,783 | 4,940 | 657 | ||||||||||||
Other income (expense), net
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27 | (93 | ) | 83 | (122 | ) | ||||||||||
Income before income taxes
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1,692 | 1,690 | 5,023 | 535 | ||||||||||||
Income tax expense
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522 | 733 | 1,601 | 497 | ||||||||||||
Net income
|
$ | 1,170 | $ | 957 | $ | 3,422 | $ | 38 | ||||||||
Earnings per share
|
||||||||||||||||
Basic
|
$ | 0.11 | $ | 0.09 | $ | 0.32 | $ | 0.00 | ||||||||
Diluted
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$ | 0.11 | $ | 0.09 | $ | 0.32 | $ | 0.00 | ||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
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10,757 | 10,752 | 10,757 | 10,752 | ||||||||||||
Diluted
|
10,768 | 10,764 | 10,768 | 10,762 | ||||||||||||
Cash dividends declared per share
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$ | 0.10 | $ | 0.10 | $ | 0.30 | $ | 0.30 |
Thirty-nine Weeks Ended
|
||||||||
October 31,
|
November 1,
|
|||||||
2010
|
2009
|
|||||||
Cash flows from operating activities
|
||||||||
Cash received from customers
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$ | 156,389 | $ | 154,522 | ||||
Cash paid to suppliers and employees
|
(168,370 | ) | (119,671 | ) | ||||
Insurance proceeds received on casualty loss
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1,708 | - | ||||||
Income taxes paid, net
|
(3,087 | ) | (1,728 | ) | ||||
Interest paid, net
|
(60 | ) | (262 | ) | ||||
Net cash (used in) provided by operating activities
|
(13,420 | ) | 32,861 | |||||
Cash flows from investing activities
|
||||||||
Purchase of property, plant, and equipment
|
(688 | ) | (1,264 | ) | ||||
Proceeds from the sale of property and equipment
|
2 | 10 | ||||||
Proceeds received on notes issued for the sale of property and equipment
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23 | 23 | ||||||
Premiums paid on officers' life insurance
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(1,321 | ) | (1,352 | ) | ||||
Proceeds received on officers' life insurance
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1,102 | 986 | ||||||
Net cash used in investing activities
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(882 | ) | (1,597 | ) | ||||
Cash flows from financing activities
|
||||||||
Proceeds from short-term borrowing
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- | 4,493 | ||||||
Payments on short-term borrowing
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- | (4,382 | ) | |||||
Cash dividends paid
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(3,233 | ) | (3,231 | ) | ||||
Payments on long-term debt
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- | (5,218 | ) | |||||
Net cash used in financing activities
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(3,233 | ) | (8,338 | ) | ||||
Net (decrease) increase in cash and cash equivalents
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$ | (17,535 | ) | $ | 22,926 | |||
Cash and cash equivalents at the beginning of the period
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37,995 | 11,804 | ||||||
Cash and cash equivalents at the end of the period
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$ | 20,460 | $ | 34,730 | ||||
Reconciliation of net income to net cash provided by operating activities:
|
||||||||
Net income
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$ | 3,422 | $ | 38 | ||||
Depreciation and amortization
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2,254 | 2,377 | ||||||
Non-cash restricted stock awards and performance grants
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58 | 61 | ||||||
Restructuring and asset impairment charges
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- | 613 | ||||||
Provision for doubtful accounts
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395 | 850 | ||||||
Deferred income taxes
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(745 | ) | (107 | ) | ||||
Loss on disposal of property
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9 | 115 | ||||||
Changes in assets and liabilities:
|
||||||||
Accounts receivable
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(2,911 | ) | 3,163 | |||||
Inventories
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(19,447 | ) | 26,703 | |||||
Prepaid expenses and other current assets
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(949 | ) | (1,439 | ) | ||||
Trade accounts payable
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3,839 | (276 | ) | |||||
Accrued salaries, wages, and benefits
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243 | 629 | ||||||
Accrued income taxes
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(253 | ) | - | |||||
Other accrued expenses
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(38 | ) | (644 | ) | ||||
Deferred compensation
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703 | 577 | ||||||
Other long-term liabilities
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- | 201 | ||||||
Net cash (used) provided by operating activities
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$ | (13,420 | ) | $ | 32,861 |
1.
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Preparation of Interim Financial Statements
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§
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the 2011 fiscal year and comparable terminology mean the fiscal year that began February 1, 2010 and will end January 30, 2011; and
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§
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the 2010 fiscal year and comparable terminology mean the fiscal year that began February 2, 2009 and ended January 31, 2010.
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2.
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Inventories
|
October 31,
|
January 31,
|
|||||||
2010
|
2010
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|||||||
Finished furniture
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$ | 58,533 | $ | 40,205 | ||||
Furniture in process
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743 | 798 | ||||||
Materials and supplies
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10,530 | 7,258 | ||||||
Inventories at FIFO
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69,806 | 48,261 | ||||||
Reduction to LIFO basis
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14,184 | 12,085 | ||||||
Inventories
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$ | 55,622 | $ | 36,176 |
3.
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Property, Plant and Equipment |
October 31,
|
January 31,
|
|||||||
2010
|
2010
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|||||||
Buildings and land improvements
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$ | 23,996 | $ | 23,708 | ||||
Machinery and equipment
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3,501 | 3,507 | ||||||
Furniture and fixtures
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27,774 | 27,494 | ||||||
Other
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4,138 | 4,043 | ||||||
Total depreciable property at cost
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59,409 | 58,752 | ||||||
Less accumulated depreciation
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39,800 | 37,603 | ||||||
Total depreciable property, net
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19,609 | 21,149 | ||||||
Land
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1,357 | 1,357 | ||||||
Construction in progress
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207 | 241 | ||||||
Property, plant and equipment, net
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$ | 21,173 | $ | 22,747 |
4.
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Intangible Assets
|
October 31,
|
January 31,
|
|||||||
2010
|
2010
|
|||||||
Non-amortizable Intangible Assets
|
||||||||
Trademarks and trade names - Bradington-Young
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$ | 2,676 | $ | 2,676 | ||||
Trademarks and trade names - Sam Moore
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396 | 396 | ||||||
Trademarks and trade names - Opus Designs
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396 | 396 | ||||||
Total trademarks and tradenames
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$ | 3,468 | $ | 3,468 |
6.
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Other Comprehensive Income (Loss)
|
Thirteen Weeks Ended
|
Thirty-Nine Weeks Ended
|
|||||||||||||||
October 31,
|
November 1,
|
October 31,
|
November 1,
|
|||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Net income
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$ | 1,170 | $ | 957 | $ | 3,422 | $ | 38 | ||||||||
Loss on interest rate swap
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- | - | - | (26 | ) | |||||||||||
Portion of swap agreement's fair value
|
||||||||||||||||
reclassified to interest expense
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- | - | - | 118 | ||||||||||||
Reclassification to income of cumulative
|
||||||||||||||||
balance related to ineffective swap
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- | 76 | 76 | |||||||||||||
Reclassification to income of unamortized
|
||||||||||||||||
balance of swap termination payment
|
- | 61 | 61 | |||||||||||||
Unrealized gain on interest rate swap
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- | 137 | - | 229 | ||||||||||||
Portion of accumulated actuarial gain on Supplemental
|
||||||||||||||||
Retirement Income Plan reclassified to deferred
|
||||||||||||||||
compensation expense
|
(59 | ) | (55 | ) | (178 | ) | (164 | ) | ||||||||
Other comprehensive income (loss) before tax
|
(59 | ) | 82 | (178 | ) | 65 | ||||||||||
Income tax benefit (expense)
|
22 | (31 | ) | 67 | (25 | ) | ||||||||||
Other comprehensive income (loss), net of tax
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(37 | ) | 51 | (111 | ) | 40 | ||||||||||
Comprehensive net income
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$ | 1,133 | $ | 1,008 | $ | 3,311 | $ | 78 |
7.
|
Supplier Receivable
|
8.
|
Earnings Per Share
|
Thirteen Weeks Ended
|
Thirty-nine Weeks Ended
|
|||||||||||||||
October 31,
|
November 1,
|
October 31,
|
November 1,
|
|||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Net income
|
$ | 1,170 | $ | 957 | $ | 3,422 | $ | 38 | ||||||||
Less: Unvested participating restricted stock dividends
|
3 | 2 | 4 | 6 | ||||||||||||
Net earnings allocated to unvested participating
|
||||||||||||||||
restricted stock
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- | 2 | - | - | ||||||||||||
Earnings available for common shareholders
|
1,167 | 953 | 3,418 | 32 | ||||||||||||
Weighted average shares outstanding for basic
|
||||||||||||||||
earnings per share
|
10,757 | 10,752 | 10,757 | 10,752 | ||||||||||||
Dilutive effect of non-vested restricted stock awards
|
11 | 12 | 11 | 10 | ||||||||||||
Weighted average shares outstanding for diluted
|
||||||||||||||||
earnings per share
|
10,768 | 10,764 | 10,768 | 10,762 | ||||||||||||
Basic earnings per share
|
$ | 0.11 | $ | 0.09 | $ | 0.32 | $ | 0.00 | ||||||||
Diluted earnings per share
|
$ | 0.11 | $ | 0.09 | $ | 0.32 | $ | 0.00 |
9.
|
Long Term Debt and Interest Rate Swaps
|
Thirteen Weeks Ended
|
Thirty-Nine Weeks Ended
|
|||||||||||||||
October 31,
|
November 1,
|
October 31,
|
November 1,
|
|||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Interest rate swap:
|
||||||||||||||||
Loss recognized in other comprehensive income
|
$ | - | $ | - | $ | - | $ | (26 | ) | |||||||
Loss reclassified from accumulated other comprehensive
|
||||||||||||||||
income into interest expense, net
|
- | - | - | 118 | ||||||||||||
Loss recognized in net income
|
- | (130 | ) | - | (130 | ) | ||||||||||
Loss recognized in net income on change
|
||||||||||||||||
in fair value of derivative financial instrument
|
- | (22 | ) | - | (22 | ) |
10.
|
Employee Benefit Plans
|
October 31,
|
January 31,
|
|||||||
2010
|
2010
|
|||||||
Accrued salaries, wages and benefits (current portion)
|
$ | 514 | $ | 436 | ||||
Deferred compensation (long-term portion)
|
6,682 | 5,868 | ||||||
Total liability
|
$ | 7,196 | $ | 6,304 |
Thirteen Weeks Ended
|
Thirty-Nine Weeks Ended
|
|||||||||||||||
October 31,
|
November 1,
|
October 31,
|
November 1,
|
|||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Net periodic benefit cost
|
||||||||||||||||
Service cost
|
$ | 146 | $ | 158 | $ | 437 | $ | 474 | ||||||||
Interest cost
|
85 | 89 | 255 | 267 | ||||||||||||
Actuarial gain
|
(59 | ) | (54 | ) | (177 | ) | (162 | ) | ||||||||
Net periodic benefit cost
|
$ | 172 | $ | 193 | $ | 516 | $ | 579 |
11.
|
Income
Taxes
|
12.
|
Casualty Loss
|
13.
|
Subsequent Events
|
§
|
the 2011 fiscal year and comparable terminology mean the fiscal year that began February 1, 2010 and will end January 30, 2011; and
|
§
|
the 2010 fiscal year and comparable terminology mean the fiscal year that began February 2, 2009 and ended January 31, 2010.
|
§
|
Due to the prolonged downturn and weak demand for residential furniture products as a result of the recession, our Asian sourcing partners realigned production in their plants by closing production lines, laying off employees and making other changes in order to balance production with decreased demand from late 2008 through the fall of 2009. By the late spring / early summer 2010, most vendors had returned to historical production levels and lead times.
|
§
|
The shipping lines that we utilize to transport imported goods reduced their capacity by temporarily taking portions of their fleets out of service and reducing the speed of their remaining ships in order to increase fuel efficiency.
|
§
|
The number of shipping containers available at any particular time decreased due to longer shipping cycles and a decline in the number of new containers being manufactured.
|
§
|
Net sales increased by $3.1 million, or 6.0%, to $55.7 million during the fiscal year 2011 third quarter, compared to net sales of $52.6 million during the fiscal year 2010 third quarter. This is the second consecutive quarterly sales increase. For the first nine months of fiscal 2011, net sales increased $9.8 million or 6.5% compared to the same fiscal 2010 period.
|
§
|
Gross margins for the fiscal 2011 third quarter decreased and gross margins for the fiscal 2011 first nine months remained essentially flat compared to the prior year periods, both primarily due to increased freight costs on imported products and a $500,000 charge related to a fire at one of our distribution facilities during our fiscal 2011 first quarter. These increased costs were partially offset by improved margins at our upholstery division, primarily due to efficiencies resulting from increased upholstery sales.
|
§
|
Selling and administrative expenses decreased both as a percentage of sales and in absolute terms compared to the corresponding three and nine-month fiscal year 2010 periods, primarily as a result of cost cutting measures implemented during fiscal 2010. Additionally, lower bad debts, lower compensation expense and lower professional fees for the three-month period and lower bad debt expense, selling expenses and professional fees for the nine-month period contributed to the improvements.
|
§
|
Operating income for the fiscal year 2011 third quarter was $1.7 million, or 3.0% of net sales, compared to operating income of $1.8 million, or 3.4% of net sales, in the fiscal year 2010 third quarter. This decrease is primarily due to increased freight costs on imported products, partially offset by decreased selling and administrative expenses and improved domestic upholstery plant utilization due to higher sales. For the nine-month periods, operating income was $4.9 million or 3.1% of net sales, compared to operating income of $657,000 or 0.4% of net sales for the comparable 2010 fiscal period. This improvement was principally due to lower selling and administrative expenses, improved domestic upholstery plant utilization due to higher upholstery sales and the absence of asset impairment activity during the fiscal year 2011 first nine months, compared to the corresponding prior year period, partially offset by the expenses related to the fire at our distribution center.
|
Thirteen Weeks Ended
|
Thirty-nine Weeks Ended
|
|||||||||||||||
October 31,
|
November 1,
|
October 31,
|
November 1,
|
|||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Net sales
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Cost of sales
|
78.0 | 75.9 | 77.3 | 77.7 | ||||||||||||
Casualty loss
|
- | - | 1.4 | - | ||||||||||||
Insurance recovery
|
- | - | (1.1 | ) | - | |||||||||||
Total cost of sales
|
78.0 | 75.9 | 77.6 | 77.7 | ||||||||||||
Gross profit
|
22.0 | 24.1 | 22.4 | 22.3 | ||||||||||||
Selling and administrative expenses
|
19.0 | 20.7 | 19.4 | 21.5 | ||||||||||||
Restructuring and asset impairment charge
|
- | - | - | 0.4 | ||||||||||||
Operating income
|
3.0 | 3.4 | 3.1 | 0.4 | ||||||||||||
Other income (expense), net
|
0.1 | (0.2 | ) | 0.1 | (0.1 | ) | ||||||||||
Income before income taxes
|
3.0 | 3.2 | 3.1 | 0.3 | ||||||||||||
Income tax expense
|
0.9 | 1.4 | 1.0 | 0.3 | ||||||||||||
Net income
|
2.1 | 1.8 | 2.1 | - |
Thirteen Weeks Ended
|
Thirty-nine Weeks Ended
|
|||||||||||||||||||||||||||||||
October 31, 2010
|
November 1, 2009
|
October 31, 2010
|
November 1, 2009
|
|||||||||||||||||||||||||||||
$ |
% Segment
Net Sales
|
$ |
% Segment
Net Sales
|
$ |
% Segment
Net Sales
|
$ |
% Segment
Net Sales
|
|||||||||||||||||||||||||
Net Sales
|
||||||||||||||||||||||||||||||||
Casegoods
|
$ | 36.7 | $ | 35.4 | $ | 103.8 | $ | 104.5 | ||||||||||||||||||||||||
Upholstery
|
19.0 | 17.2 | 56.7 | 46.1 | ||||||||||||||||||||||||||||
Total
|
$ | 55.7 | $ | 52.6 | $ | 160.5 | $ | 150.6 | ||||||||||||||||||||||||
Gross Margin
|
||||||||||||||||||||||||||||||||
Casegoods
|
$ | 9.5 | 25.9 | % | $ | 10.5 | 29.7 | % | $ | 28.2 | 27.2 | % | $ | 28.2 | 26.9 | % | ||||||||||||||||
Upholstery
|
2.8 | 14.5 | % | 2.2 | 12.7 | % | 7.8 | 13.7 | % | 5.4 | 11.8 | % | ||||||||||||||||||||
Total
|
$ | 12.3 | 22.0 | % | $ | 12.7 | 24.1 | % | $ | 36.0 | 22.4 | % | $ | 33.6 | 22.3 | % | ||||||||||||||||
Operating Margin
|
||||||||||||||||||||||||||||||||
Casegoods
|
$ | 2.2 | 6.0 | % | $ | 3.0 | 8.4 | % | $ | 7.2 | 6.9 | % | $ | 5.5 | 5.3 | % | ||||||||||||||||
Upholstery
|
(0.5 | ) | -2.8 | % | (1.2 | ) | -6.8 | % | (2.3 | ) | -4.0 | % | (4.9 | ) | -10.6 | % | ||||||||||||||||
Total
|
$ | 1.7 | 3.0 | % | $ | 1.8 | 3.4 | % | $ | 4.9 | 3.1 | % | $ | 0.7 | 0.4 | % |
§
|
manufacturing efficiencies due to increased production rates,
|
§
|
cost reduction efforts,
|
§
|
partially offset by higher raw material and manufacturing costs as a percentage of sales due to changes in product mix.
|
§
|
deferring, reducing or eliminating certain spending plans;
|
§
|
continuing to refine the management of our supply chain, warehousing and distribution operations; and
|
§
|
managing inventory levels in order to achieve an optimum balance between product availability and working capital management.
|
§
|
manufacturing inefficiencies related to introducing new products;
|
§
|
inefficiencies related to recent decreased production levels in response to reduced orders; and
|
§
|
slower than expected savings realization from our continuous improvement initiatives.
|
§
|
pursuing additional distribution channels and offering an array of new products and designs, which are generating additional sales growth. This has included a focus on updating our upholstery lines with more contemporary offerings while retaining our best selling traditionally-styled items. In the fiscal 2011 first quarter, we began shipping the Envision product line to respond to the needs of a younger consumer, a market that we believe will recover more quickly than our traditional customer base;
|
§
|
taking actions to streamline our domestic upholstery operations, by improving efficiency and reducing overhead which has included reducing personnel, consolidating manufacturing facilities and introducing technological changes to reduce labor costs. Additionally, we have realigned upholstery division management to more intensely focus on areas of concern and continue to evaluate division efficiency; and
|
§
|
continuing to evaluate our operating costs to better match costs to current sales volume levels
by intensifying our focus on cost reduction and sales growth initiatives for our upholstery operations.
|
§
|
Non-cash asset impairment charges of approximately $1.1 million pretax ($725,000 after tax, or $0.07 per share) to write down the Cherryville facility’s real and personal property to estimated fair market value;
|
§
|
Severance and benefit costs of approximately $312,000 pretax ($206,000 after tax, or $0.02 per share); and
|
§
|
Disassembly costs and moving costs of approximately $40,000, which will be expensed as incurred during the 2011 fiscal fourth quarter.
|
§
|
current economic conditions and instability in the financial and credit markets including their potential impact on our (i) sales and operating costs and access to financing, (ii) customers and suppliers and their ability to obtain financing or generate the cash necessary to conduct their respective businesses;
|
§
|
general economic or business conditions, both domestically and internationally;
|
§
|
price competition in the furniture industry;
|
§
|
changes in domestic and international monetary policies and fluctuations in foreign currency exchange rates affecting the price of our imported products and raw materials;
|
§
|
the cyclical nature of the furniture industry, which is particularly sensitive to changes in consumer confidence, the amount of consumers’ income available for discretionary purchases, and the availability and terms of consumer credit;
|
§
|
risks associated with the cost of imported goods, including fluctuations in the prices of purchased finished goods and transportation and warehousing costs;
|
§
|
supply, transportation and distribution disruptions, particularly those affecting imported products;
|
§
|
adverse political acts or developments in, or affecting, the international markets from which we import products, including duties or tariffs imposed on those products;
|
§
|
risks associated with domestic manufacturing operations, including fluctuations in capacity utilization and the prices of key raw materials, transportation and warehousing costs, domestic labor costs and environmental compliance and remediation costs;
|
§
|
our ability to successfully implement our business plan to increase sales and improve financial performance; risks associated with distribution through retailers, such as non-binding dealership arrangements;
|
§
|
capital requirements and costs;
|
§
|
competition from non-traditional outlets, such as catalog and internet retailers and home improvement centers;
|
§
|
changes in consumer preferences, including increased demand for lower quality, lower priced furniture due to declines in consumer confidence and/or discretionary income available for furniture purchases and the availability of consumer credit;
|
§
|
higher than expected costs associated with product quality and safety, including regulatory compliance costs related to the sale of consumer products and costs related to defective products; and
|
§
|
achieving and managing growth and change, and the risks associated with acquisitions, restructurings, strategic alliances and international operations.
|
§
|
when or whether we are able to implement and complete the Cherryville relocation and consolidation as expected;
|
§
|
whether we incur higher than expected charges or cash expenditures related to the Cherryville relocation and consolidation;
|
§
|
whether we will achieve anticipated operating cost savings and efficiencies when and if the Cherryville relocation and consolidation is completed;
|
§
|
whether we experience disruptions to our domestic manufacturing operations resulting from the planned Cherryville relocation and consolidation;
|
§
|
when and whether we will be able to dispose of the Cherryville plant and surplus or obsolete machinery and equipment at anticipated values.
|
#
|
Under Rule 406T of Regulation S-T, this exhibit is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise is not subject to liability under those sections.
|
HOOKER FURNITURE CORPORATION | |||
Date: December 8, 2010
|
By:
|
/s/ E. Larry Ryder | |
E. Larry Ryder
|
|||
Executive Vice President – Finance and
Administration and Chief Financial Officer
|
|||
Attained
Age
|
Vested Percentage of the Supplemental
Benefit
|
60
|
75%
|
61
|
80%
|
62
|
85%
|
63
|
90%
|
64
|
95%
|
65
|
100%
|
|
(b)
|
Specific reference to pertinent Plan provisions on which the denial is based,
|
|
(c)
|
A description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why the material or information is necessary, and
|
|
(d)
|
A description of the Plan’s review procedures and the time limits applicable to the procedures, including a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following a denial upon review of the claim.
|
|
(a)
|
provide, upon request and free of charge, reasonable access to and copies of all documents, records and other information relevant to the claim, and
|
|
(b)
|
permit the claimant to submit written comments, documents, records and other information relating to the claim.
|
|
(c)
|
a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of all documents, records and other information relevant to the claimant’s claim, and
|
|
(d)
|
a statement of the claimant’s right to bring an action under Section 502(a) of ERISA.
|
HOOKER FURNITURE CORPORATION | |
By: /s/ E. Larry Ryder | |
Title: Executive Vice President - Finance
and
Administration
and Chief Financial Officer
|
1.
|
Acceptance of the Plan.
The Participant accepts participation in the Plan, the terms of which are hereby fully incorporated by reference, and acknowledges receipt of a copy of the Plan and agrees to be bound by such Plan. In the event of a conflict between the SRIP Participation Agreement and the Plan, the Plan shall control. The Administrative Committee retains the absolute right to interpret the Plan and the SRIP Participation Agreement, and all decisions by the Administrative Committee on such interpretations shall be final and binding and shall not be subject to review. Any capitalized terms used in this SRIP Participation Agreement shall have the same definitions set forth in the Plan.
|
2.
|
The Participant.
The Participant’s full name, address, and social security number are as follows:
|
3.
|
Effective Date.
The effective date for the Participant’s participation in the Plan shall be
[
DATE]
.
|
4.
|
Specified Percentage.
Pursuant to Section 3.1 of the Plan and subject to the provisions set forth herein and in the Plan, the Participant’s Specified Percentage shall be
______
%
effective as of the date first written above.
|
5.
|
[INSERT ANY OTHER SPECIAL TERMS]
|
HOOKER FURNITURE CORPORATION | |
By: ________________________ | |
Title:________________________ | |
PARTICIPANT | |
By: ________________________ |
1.
|
Acceptance of the Plan.
The Participant accepts participation in the Plan, the terms of which are hereby fully incorporated by reference, and acknowledges receipt of a copy of the Plan and agrees to be bound by such Plan. In the event of a conflict between the SRIP Participation Agreement and the Plan, the Plan shall control. The Administrative Committee retains the absolute right to interpret the Plan and the SRIP Participation Agreement, and all decisions by the Administrative Committee on such interpretations shall be final and binding and shall not be subject to review. Any capitalized terms used in this SRIP Participation Agreement shall have the same definitions set forth in the Plan.
|
2.
|
The Participant.
The Participant’s full name, address, and social security number are as follows:
|
3.
|
Effective Date.
The effective date for the Participant’s participation in the Plan shall be
[
DATE]
.
|
4.
|
Specified Percentage.
Pursuant to Section 3.1 of the Plan and subject to the provisions set forth herein and in the Plan, the Participant’s Specified Percentage shall be
______
%
effective as of the date first written above.
|
5.
|
[INSERT ANY OTHER SPECIAL TERMS]
|
HOOKER FURNITURE CORPORATION | |
By: ________________________ | |
Title:________________________ | |
PARTICIPANT | |
By: ________________________ |
a.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
b.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|