The Rowe Companies Announces Third Quarter Financial Results

Furniture World Magazine

The Rowe Companies (NYSE: ROW), a leading furniture manufacturer and retailer, reported operating results for the third quarter ended August 27, 2000. Net shipments for the third quarter of fiscal year 2000 amounted to $85.4 million, compared to $70.2 million for the same period last year. Third quarter earnings were $652 thousand, or $0.05 per diluted share, compared to $2.9 million, or $0.21 per diluted share for the same period a year ago. For the nine months year to date, net shipments amounted to $260.6 million, compared with $194.1 million in the corresponding year-ago period. Net income for the nine months amounted to $4.2 million, or $0.31 per diluted share, compared with $9.1 million, or $0.63 per diluted share a year ago. Shipments and earnings for the quarter and year to date include results from Storehouse, Inc., which was acquired and included in consolidated results as of August 1, 1999. Operating results for the third quarter and year to date continue to be negatively impacted by additional costs associated with the start-up of the new upholstery production facility in Elliston, Virginia, pre-opening costs on new retail store locations, increases in health and medical costs, higher borrowing costs and a generally more difficult business environment which has impacted incoming orders. In commenting on these results, Gerald M. Birnbach, Chairman and President stated, "Third quarter shipments and earnings are consistent with recent forecasts. We continue to focus on improving operating efficiencies at our Elliston plant and reducing adverse cost and expense trends while we attempt to drive top line growth in this difficult business environment." The Rowe Companies is comprised of Rowe Furniture, Inc. a major manufacturer of quality upholstered furniture; The Mitchell Gold Co., a fast- growing, upholstered furniture manufacturer serving some of the nation's leading specialty retailers; The Wexford Collection, Inc. a manufacturer of casual wood furniture; Storehouse, Inc., a 43-store retail furniture chain; and Home Elements, a 16-store specialty retail furniture group.