Wed. Nov 13th, 2019

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HOFT: Hooker Furniture Corporation (NASDAQ-GS: HOFT)

2 min read

 Hooker Furniture Corporation (NASDAQ-GS: HOFT) newly stated merged net sales of $152.20M and net income of $4.20M, or $0.350 for each diluted share, for its 2k20 financial year 2nd-quarter finished August 4, 2k19.

Net sales reduced 9.70 percent, or $16.40M, contrast to the previous year duration, and net income reduced 52.10 percent, or $4.50M. Earnings for each diluted share for the quarter reduced 52.70 percent from $0.740 a year ago.

For the fiscal 2k20 first-half, merged net sales were $287.80M, with net income of $6.10M, or $0.520 for each diluted share. Net sales reduced 7.60 percent, or $23.80M contrast to previous year’s 1st-half. Earnings for each diluted share reduced 61.20 percent to $0.520 from $1.340 in the previous year first-half.

Segment Reporting: All Other

All Other, which includes domestically-produced upholstery divisions Bradington-Young, Shenandoah and Sam Moore, together with H Contract, stated a net sales decline of $1.40M, or 5.30 percent, from $27.10M in previous year’s 2nd-quarter to $25.70M in the fiscal 2k20 2nd-quarter. Lower sales were driven by a sales decline in our domestic upholstery manufacturing divisions because of reduced incoming orders, partially offset by continued growth at H Contract, which specializes in furnishings for senior living and retirement facilities.

With targeted sales efforts, mid-year product introductions, and raised orders on several best-selling items, three of four divisions in All Other stated double-digit order inclines in July 2k19 as compared to July 2k18. Under the leadership of a new division president, Sam Moore is starting to grow again, with July incoming orders up nearly 16.00 percent contrast to the prior year and backlogs up 2.50 percent as of the end of the fiscal 2nd-quarter.

Despite a sales decline, All Other’s gross profit raised in absolute terms and as a percentage of net sales because of lower material costs and better cost containment. It stated operating income margin of 6.80 percent and 8.30 percent for the fiscal 2nd-quarter and 1st-half, respectively.

Cash, Debt and Inventory

The Company finished the fiscal 2k20 2nd-quarter with $13.30M in cash and cash equivalents and $32.50M in acquisition-related debt. Despite the disappointing operating results, during the 1st-half the Company generated $11.00M in cash from operating activities and $1.40M from proceeds received on a note receivable from the sale of a former distribution facility, paid $3.70M for capital expenditures to expand manufacturing facilities, $3.50M in cash dividends to its shareholders and $2.90M towards its term loans. As of August 4, 2k19, $27.80M was available on its $30.00M revolving credit facility, net of $2.20M reserved for standby letters of credit. Merged inventories stood at $113.60M. In Addition To, the Company’s total assets and liabilities each raised about $43.00M because of the adoption of Accounting Standards Codification Topic 842, Leases on the 1st-day of the current financial year.

 

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