UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 14, 1998
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LifeStyle Furnishings International Ltd.
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(Exact Name of Registrant as Specified in its Charter)
Delaware 333-11905 56-1977928
(State or Other Jurisdiction of (Commission (IRS Employer
Incorporation) File Number) Identification No.)
4000 Lifestyle Court
High Point, North Carolina 27265
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(Address of Principal Executive Offices)(Zip Code)
Registrant's telephone number, including area code 336-878-7000
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Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events.
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LifeStyle Furnishings International Ltd. (the "Registrant") issued a
press release on August 14, 1998. The relevant portion of the text of that
release was as follows:
FOR IMMEDIATE RELEASE CONTACT: Wayne B. Lyon
Ronald J. Hoffman
LIFESTYLE FURNISHINGS INTERNATIONAL LTD.
REPORTS EARNINGS FOR THE SECOND QUARTER
High Point, North Carolina; August 14, 1998 - LifeStyle Furnishings
International Ltd. ("LFI") today reported second quarter 1998 net sales of
$479.3 million, essentially unchanged from the second quarter of 1997. Operating
profits declined 24.5% to $30.2 million and net income declined 16.7% to $13.6
million, compared to the prior year quarter, as production efficiency and
operating costs continued to be negatively impacted by several strategic
operational initiatives currently under way at LFI.
Wayne B. Lyon, Chairman, CEO, and President said, "We are pleased with
our order momentum and customer acceptance with new product. However, second
quarter shipments continued to be temporarily impacted as the initial
implementation and rollout of planned manufacturing and technology initiatives
at several business units combined to limit product availability. Similarly,
operating profits have been impacted by transition costs related to LFI's
restructuring and reengineering initiatives designed to improve quality, reduce
order-to-ship times, and enhance product value. While these initiatives are
temporarily disruptive, we are confident that the resultant benefit to our
customers and our consumers will more than justify the short-term costs."
LFI announced a cash tender offer and consent solicitation relating to
its $200 million aggregate principal amount outstanding of 10 7/8% Senior
Subordinated Notes due 2006. The offer for the 10 7/8% notes is subject to
certain conditions, including completion of the previously announced initial
public offering, a requirement that LFI receive the valid consent of holders of
at least a majority in aggregate principal amount of such securities and a
requirement that at least a majority in aggregate principal amount of such
securities have been validly tendered pursuant to the offer.
LFI continues to work with its underwriters on the Initial Public
Offering announced on July 8, 1998. The timing of the proposed offering is
subject to market conditions, regulatory approvals, and other factors.
LFI is the largest manufacturer and marketer of home furnishings
products with sales of approximately $2 billion. LFI leadership brands include
Beacon Hill(R), BenchCraft(R), Berkline(R), Drexel Heritage(R), Henredon(R),
LaBarge(R), Lexington(R), Maitland-Smith(TM), Robert Allen(TM)/Ametex(TM),
Sunbury(TM) and Universal(R).
REVISED
LifeStyle Furnishings International Ltd.
Condensed Consolidated Statements of Operations
(Unaudited) (Dollars in thousands)
Three Months Ended June 30,
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1998 1997
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Net sales $479,260 $479,400
Cost of sales 358,190 353,220
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Gross profit 121,070 126,180
Selling, general and administrative
expenses 90,880 86,190
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Operating profit 30,190 39,990
Other expense, net 10,700 14,800
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Income before income taxes 19,490 25,190
Income taxes 5,860 8,820
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Net income $ 13,630 $ 16,370
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Condensed Consolidated Balance Sheets
(Unaudited) (Dollars in thousands)
As of June 30,
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1998 1997
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Assets:
Cash and cash investments $ 11,640 $ 16,860
Receivables 86,400 129,540
Investment in receivables trust 61,590 56,220
Inventories 498,910 542,580
Other current assets 71,920 39,740
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Total current assets 730,460 784,940
Property and equipment, net 343,300 347,780
Other assets 47,060 70,580
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Total assets $1,120,820 $1,203,300
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Liabilities and stockholder's equity:
Long-term debt, current 460 19,120
Accounts payable 129,080 112,290
Other current liabilities 132,160 136,260
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Total current liabilities 261,700 267,670
Long-term debt 311,600 421,460
Other liabilities 85,210 46,580
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Total liabilities 658,510 735,710
Stockholder's equity 462,310 467,590
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Total liabilities and stockholder's equity $1,120,820 $1,203,300
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
LifeStyle Furnishings International Ltd.
Date: August 14, 1998 By: /s/ Douglas C. Barnard
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Name: Douglas C. Barnard
Title: Vice President, General
Counsel and Secretary
