Stanley Furniture Swings to 3Q Profit

October 28, 2015  by in Financial Reports, Industry   

Net sales for the quarter were down 1.2 percent to $13.8 million compared to net sales of $13.9 million in the third quarter last year.

For the nine-month period ended Sept. 26, Stanley reported net income of $4.4 million, which included receipt of $4.9 million in dumping subsidies. Those funds were used to pay down policy loans on life insurance policies used to fund the company’s deferred compensation plan.

“We are pleased to report consecutive quarters of operating profits and earnings for our shareholders,” said Glenn Prillaman, president and CEO. “Normally, we would have shipped products from our adult line introduced earlier this year, but multiple initial production runs of our new Stone & Leigh brand at the same facility producing our adult line introductions caused some short-term disruption to shipments impacting third quarter sales.”

The company now enters its first full quarter producing the line of nursery and youth furniture where backlog continues to grow.

“We are now back on offense making decisions that we expect to produce growth and leverage the cost structure already producing profits,” Prillaman said. “Our consumer catalog and website for our new brand will be introduced in the fourth quarter. This new brand promises to attract the elusive millennial consumer into our customers’ stores. We also had a positive reception from our customers to more competitively priced product introduced at this month’s High Point Market.”

The complete earnings release is available online. 

The company also elected Ian Lapey as chairman of the board.

Lapey succeeds Michael Haley who had been chairman since 2011. Haley remains on the board.

“I am honored to serve as chair of Stanley’s board and look forward to guiding the company to the growth and resulting shareholder value gains expected in today’s markets,” Lapey said.