HIGH POINT, NC - Stanley Furniture (Nasdaq NGS:STLY), closing its U.S. furniture manufacturing, saw a burst of final orders. The furniture maker says the closure will be "cash generative."
Its loss declined to $2.1 million, down from $2.7 million one year ago, on sales of $24 million - flat with the year prior. In a sour note, a boiler explosion rocked Stanley's Robbinsville, NC plant. today reported sales and operating results for the second quarter of 2014.
A $16.2 million restructuring charges (mostly writedowns of assets and inventories) for ending U.S. production of its Young America line is included in the figures. Next quarter Stanley Furniture says employee severance will run an additional $300,000 to $500,000.
A large number of orders arrived as the April 29 deadline neared.
“We expected to use cash initially in order to satisfy all open orders, including the large influx of orders we received when we announced ceasing domestic production,” said Glenn Prillaman, CEO, who expects Stanley Furniture "should generate cash in the coming quarter through the sale of assets associated with the Young America operation." Stanley Furniture will enter the third quarter with a $2.3 million Young America backlog and approximately $3 million of unsold inventory.
Prillaman said Stanley Furniture's retailers are seeing a softening in consumer traffic, and we have noted a corresponding softness in orders that began in the latter part of the second quarter. Given our adjustments to our overhead structure, we expect selling, general and administrative costs to be approximately $3.5 million quarterly for the near term, excluding restructuring charges.”
As part of Stanley Furniture's restructuring efforts related to its ceasing domestic manufacturing, the company also announced today that Micah S. Goldstein, its COO and CFO, plans to resign in mid-August.
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