Stanleytown, VA, April 26--Stanley Furniture Co. Inc. reported an increase in first quarter earnings, helped by higher sales and improved operating efficiencies.
The company reported earnings of $5.76 million, or $.86 per share, in the first quarter, compared with $4.6 million, or $0.71 per share, a year earlier.
Sales of $83.0 million increased 16.0% and earnings per share grew 21.1% to $.86 from the first quarter of last year.
Higher sales, increased production levels at the company's domestic facilities, although at a slower growth rate than sales due to the expansion of sourced items, and operating efficiencies drove the improvement. These improvements were partially offset by inflation in raw materials, compensation costs, energy and freight costs, increased warehouse expense and tariffs imposed on wooden bedroom furniture imported from China.
"We are pleased to report another quarter of significant progress," commented Jeffrey R. Scheffer, president and chief executive officer. For the most recent four quarters our sales have increased 15.6% from the previous four quarter period.
"We believe market share gains are driving our sales growth. Blending efficient domestic manufacturing in our highly focused facilities with intelligent outsourcing of certain component parts and finished goods has allowed us to improve the styling and value of our products. Combining this with our culture and reputation for high quality and fast delivery differentiates us from our competition. We enter the second quarter with considerable momentum and anticipate 2005 to be another good year."
Management offers the following guidance for total year 2005: Net sales are expected to be in the range of $330 million to $340 million, an increase of 8% to 11% over the prior year.
-Operating income is expected to be in the range of $37.8 million to $38.8 million.
-The company's effective tax rate is expected to be in the range of 35.5% to 36.0% in 2005.
-Earnings per share are expected to be in the range of $3.45 to $3.55 compared to $3.17 for 2004.
Management offers the following guidance for the quarter ending July 2, 2005.
-Net sales are expected to be in the range of $79.0 million to $81.5 million, an increase of 9% to 13% over the second quarter of 2004.
-Operating income is expected to be in the range of $8.4 million to $9.0 million.
-Earnings per share are expected to be in the range of $.76 to $.81 compared to record earnings of $.80 per share in the year-ago quarter.
