STANLEYTOWN, VA - Stanley Furniture Company, Inc. (NGS:STLY) says it will distribute to the holders of its common stock as of 5:00 p.m., New York time, on Monday, Nov. 15, 2010, rights to purchase .322226 shares of common stock at $3.00 per share. If fully subscribed, Stanley Furniture expects to generate $10 million.
Stanley Furniture reported net third quarter sales of $34.9 million, a drop of 9.3 percent from the third quarter of 2009. Net loss for the quarter was $4.9 million, compared to a net loss of $5.1 million in the third quarter of 2009.
Stanley has begun to manufacture all of its Young America furniture line domestically. "The increased prices on this product line and improved operating efficiencies at our Robbinsville, NC plant drove the improvement in our operating results for the third quarter," says Glenn Prillaman, president and CEO. Stanley Furniture's adult product ismoving to a completely globally sourced model. "We are on schedule to cease manufacturing at our Stanleytown, VA factory in December 2010," Prillaman said.
"We anticipate operating inefficiencies stemming from the wind-down of this plant and the disruption created by this move may reduce sales and increase our operating loss in the fourth quarter," Prillaman predicted. "However, our partner factories overseas are already making a significant portion of this product line, and we anticipate a smooth operational transition as we shift our remaining domestic production to these suppliers."
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