Hooker Restates 4Q Earnings

February 15, 2006  by in UnCategorized   

By Home Furnishings Business in on February 2006 Hooker Furniture announced this week that it understated net income for its fourth quarter, that ended Nov. 30, 2005, by approximately $658,000.

The revision to the Jan. 12 news release, resulting mostly from an overstated advertising program costs and group insurance expense for the 2005 fourth quarter, states a combined $1 million of additional pretax income.

Hooker's revised net sales for the 2005 fourth quarter are $90.2 million and $341.8 million for the 2005 fiscal year. Net income for the 2005 fourth quarter as revised is $4 million, and revised net income for the year is $12.5 million.

Hooker accounts for certain of the advertising program allowances in question as a reduction in net sales. When accounting for these programs, the company recorded some of those costs before an actual liability was incurred. The effect of this error was not material to results of operations in the current or any prior period.

The decrease in group insurance expense was the result of a correction to the accrual for the month of November 2005.

In addition, Hooker revised its 2006 first-quarter net sales estimate to a range of 2 percent lower to 2 percent higher than its strong first quarter sales in 2005. The revised forecast is based upon better-than-anticipated shipments thus far in the quarter.

Hooker will hold its annual shareholders meeting at 2 p.m., Friday, March 31, at Piedmont Arts Association, 215 Starling Ave., Martinsville, Va.