WEST LAFAYETTE, IN - Chromcraft Revington, Inc. (OTC Pink Marketplace: CRCV) announced today that it refinanced its credit facility on May 31, 2013 and entered into a new three year secured revolving credit facility with FCC, LLC (“First Capital”) of up to $9 million based upon eligible accounts receivable and inventory of the Company.
The new facility with First Capital replaces the Company’s prior $5 million credit facility with Gibraltar Business Capital, LLC. The Company believes the new facility provides several important benefits as compared to the prio r credit facility, including: increased availabilit y and borrowing capacity due in part to the inclusion of inventory in the borrowing base; an extended term of three years; more favorable net income (loss) financial covenants; and the ability to obtain a mortgage or synthetic lease on the Company’s Senatobia, Mississippi plant subject to certain limitations. The Company also believes the new facility provides the Company with the borrowing capacity to meet the Company’s an ticipated cash operating needs for at least th e next twelve months and, in addition, provides greater flexibility than the prior credit facility.
Ronald H. Butler, the Company’s Chairman and Chief Executive Officer, commented, “The increased borrowing capacity provided under our new credit facility with First Capital, along with the recent acquisition of ownership of our Senatobia plant pursuant to a property exchange with Tate County, Mississippi on May 30th, better positions the Company as it manages through a difficult economic environment and seeks to return to profitability.”
The Company also provided an update to day on the expected timing for filing its 2012 Annual Report on Form 10-K with the Securities and Exchange Commission. The Company had previous ly announced that it anticipated filing its Form 10-K by May 31, 2013. Having completed the refinancing of its credit facility on May 31, 2013, the Company now anticipates that McGladrey LLP, the Company’s independent registered public accountants, will be able to complete its audit and the Company will be in a position to file it s Form 10-K on or before June 21, 2013.
McGladrey LLP has informed the Company that its audit opinion may contain an explanatory paragraph expressing substantial doubt about the Company’s ability to continue as a going concern. Such an opinion, if rendered, will not constitute an event of default or otherwise affect the Company’s ability to continue to borrow under its new credit facility with First Capital.
Chromcraft Revington® businesses design, manufacture and import residential and commercial furniture marketed primarily in the U.S. The Company wholesales its residential furniture pr oducts under Chromcraft®, Cochrane®, Peters-Revington®, and CR Kids & Beyond® primary brands. It sells commercial furniture under the Chromcraft® and Executive Office Concepts brands. The Company sources furniture from overseas suppliers, with domestic contract specialty facilities, and operates a U.S. manufacturing facility for its commercial furniture and motion based casual dining furniture in Mississippi and a manufacturing facility for office suites and other commercial furniture lines in California.
Among risks and uncertainties that could cause actual results or outcomes to differ materially from those identified in the forward-looking statements are the impact of the current economic difficulties in the United States and elsewhere; import and domestic competition in th e furniture industry; ou r ability to execute our business strategies; our abilit y to grow sales and reduce expenses to eliminate our operating losses; the recent slowdown in the U.S. office furnitur e market will continue; pressure to reduce deficit spe nding at various governmental entities that directly or indirectly purch ase our products; ou r ability to sell the right product mix; our inability to raise prices in respon se to increasing costs; continued credit availability under our current credit facility and our ability to fully utilize the credit facility; our ab ility to negotiate and enter into a definitive agreement with RMMJ LLC on favorable terms concerni ng the previously announced possible sale of the Company and consummate such transaction; our ability to raise additional financing , if needed; our ability to anticipate or respond to changes in the tastes or needs of our end users in a timely manner; supply disruptions with products manufactured in China, Vietnam and other Asian countries; market interest rates; consumer confidence levels; cyclical nature of the furniture i ndustry; consumer and business spending; changes in relationships with customers; custom er acceptance of existing and new products; new home and existing home sales; financial viability of our customers and their ability to continue or increase product orders; loss of key management; other factors that generally affect business; and certain risks set forth in the Company’s annual report on Form 10-K for the year ended December 31, 2011.
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