Stanley Furniture Announces Twentieth Consecutive Quarter of Record Earnings; Second Quarter Earnings Per Share Increases 20% on 14% Sales Growth

Furniture World Magazine

Stanley Furniture Company, Inc. (Nasdaq: STLY) announces record sales and earnings for the second quarter of 2000, marking the twentieth consecutive quarter of record earnings. Net sales for the second quarter grew 13.8% to $72.1 million from $63.4 million in the year ago quarter. Net income rose 16.3% to $5.1 million from $4.4 million in the prior year quarter. Earnings per share on a diluted basis increased 19.6% to $.67 from $.56 in the comparable year ago quarter. For the first half of 2000, net sales of $143.1 million increased 12.6% from $127.0 million for the six months of 1999. Net income rose 18.4% to $10.2 million from $8.6 million in the prior year period. Earnings per share on a diluted basis increased 20.9% to $1.33 from $1.10 in the comparable 1999 period. Operating income as a percent of net sales of 12.7% for the three and six month periods of 2000 was about the same as the 1999 periods. Start-up costs of the new factory dedicated to the production of home office furniture, which began operation in the first quarter of 2000, were offset by lower selling, general and administrative expenses as a percent of net sales and improved operating efficiencies. "We are extremely pleased with our performance during the first half of 2000, especially considering that we were starting up a new factory," commented Albert L. Prillaman, president and chief executive officer of Stanley Furniture Company. "Our sales growth is being led by strong demand for the Young America(TM) bedroom and home office product categories. We believe the high growth potential in these categories will continue to provide above industry sales growth. However, we have seen some softening in overall demand and expect some moderation in sales growth in the second half of the year, in part due to more difficult prior year comparisons." "We also anticipate higher raw material cost, primarily lumber, in the second half of 2000," Prillaman continued. "However, we have experienced consistent improvement in operating performance at the new home office factory and expect continued improvement for the remainder of the year." Established in 1924, Stanley Furniture Company, Inc. is a leading manufacturer of wood furniture targeted at the upper-medium price range of the residential market. Manufacturing facilities are located in Stanleytown and Martinsville, VA, and Robbinsville, Lexington, and West End, NC. Its common stock is traded on the Nasdaq stock market under the symbol STLY. Visit Stanley Furniture on the World Wide Web at http://www.stanleyfurniture.com.