STANLEYTOWN, VA - Stanley Furniture Company Inc. reported a second-quarter operating loss of $932,000 on net sales of $24.4 million. But a $39.4 million windfall in proceeds from the Continued Dumping and Subsidy Offset Act on Chinese wood bedroom furniture helped it turn a $36.9 million profit.
The Stanley Board of Directors authorized using up to $5 million of the antidumping proceeds to repurchase shares of its common stock.
"(W)e received a substantial amount of cash from CDSOA proceeds in the second quarter," said Glenn Prillaman, president and CEO. "As a result, the board is carefully considering the best uses of these funds to enhance shareholder value and has authorized a share repurchase program. This demonstrates management's and the Board's continued confidence in our strategy and prospects for future growth and earnings."
While Stanley Furniture's Q2 sales retreated 10.8% from the same period last year, the company reduced its net operating loss by nearly $500,000, including incurring a $474,000 restructuring charge tied to consolidation of its Virginia warehousing operations. It represented the sixth consecutive quarter that Stanley Furniture's net operating loss declined.
Prillaman said Stanley's investment in its Robbinsville, NC, factory to begin producing its Young America children's furniture domestically, is progressing. "Our Young America brand remains in transition until later this year when we expect new enhancements to all existing products to be completed and the marketing support for those products will be in place at retail," Prillaman said. "New product designs should be on retail floors before the end of the year. We believe that the completion of these efforts paired with continual operational improvements will result in a product of significantly greater value in the marketplace boosting sales. In the meantime, we recognize we are sacrificing immediate sales in order to position the Young America brand and its supporting retailers to compete with price-driven, imported product in the long term."
Looking ahead, Stanley expects a further reduction of operating losses in its third quarter.