SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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) October 17, 1996
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LADD FURNITURE, INC.
(Exact name of registrant as specified in its charter)
North Carolina 0-11577 56-1311320
(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of Incorporation)
======================================= ======================================
One Plaza Center, Box HP-3, High Point, North Carolina 27261-1500
(Address of principal executive offices) (Zip Code)
===============================================================================
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (910) 889-0333
--------------------------
N/A
(Former name or former address, if changed since last report.)
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ITEM 1. CHANGES IN CONTROL OF REGISTRANT.
Not Applicable.
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
Not Applicable.
ITEM 3. BANKRUPTCY OR RECEIVERSHIP.
Not Applicable.
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT.
Not Applicable.
ITEM 5. OTHER EVENTS.
On October 17, 1996, the Registrant issued a press release
reporting its third quarter results of operations. The press release is attached
hereto as Exhibit 10.1 and supplemental financial data submitted to the stock
analysts is attached as Exhibit 10.2.
ITEM 6. RESIGNATIONS OF REGISTRANT'S DIRECTORS.
Not Applicable.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
a) Exhibits
10.1 Press Release dated October 17, 1996.
10.2 Supplemental Financial Data submitted to
stock analysts dated October 17, 1996.
2
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ITEM 8. CHANGE IN FISCAL YEAR.
Not Applicable.
3
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
LADD FURNITURE, INC.
Date: November 1, 1996 By: /s/William S. Creekmuir
-----------------------
William S. Creekmuir
Title: Executive Vice President, Chief Financial
Officer, Treasurer and Secretary
<PAGE>
Exhibit 10.1
LADD FURNITURE, INC. NEWS RELEASE
FOR IMMEDIATE RELEASE
October 17, 1996
One Plaza Center Box HP3 Contact: John J. Ong
High Point, NC 27261-1500 (910) 888-6353
E-mail: [email protected]
LADD REPORTS $1.8 MILLION PROFIT FOR THIRD QUARTER
HIGH POINT, NC - LADD Furniture, Inc. today reported net earnings of $1.8
million or $0.23 per share for this year's third quarter, up from 1996's
second quarter net earnings of $1.2 million or $0.15 per share. In the third
quarter of 1995, the company earned $1.9 million or $0.24 per share. Net sales
for this year's third quarter totaled $124.1 million, down from $159.1 million
in the same period of fiscal 1995, with most of the decline resulting from
LADD's divestiture of several of its business units in late 1995 and early
1996.
LADD president and CEO Fred L. Schuermann, Jr. said, "Excluding the
divestiture companies, our 1996 third quarter net sales increased slightly
compared to those of the prior quarter." He noted, "We have had several
nonrecurring transactions during the past two quarters which make LADD's
reported results difficult to evaluate. In this year's second quarter, we
recorded a substantial nonrecurring gain resulting from the curtailment of the
company's retiree health care plan, and then during the September quarter we
recorded a gain of $1.7 million in conjunction with the settlement of a long-
standing insurance claim. When our results are adjusted to exclude these two
nonrecurring items, along with the operations of our divested companies and the
various restructuring costs we have incurred, LADD's pretax profit was $3.7
million higher in the third quarter of this year than in the second quarter of
fiscal 1996."
Schuermann added, "I am encouraged that this increase in LADD' s
profitability was accomplished despite an overall flat sales environment, and
I am particularly pleased with the continuing progress this management team is
achieving during 1996 throughout the company. In addition," he concluded, "the
general tone of business in the residential furniture industry has improved in
the last month or so. This should bode well for the International Home
Furnishings Market which began here in High Point today. We are very excited
with the products we will be presenting during the market this week and next."
LADD executive vice president and chief financial officer William S.
Creekmuir said he was pleased to report that the company's total debt was
reduced by $9.8 million during the third quarter, to $143.4 million as of
September 28, 1996. Creekmuir noted
- OVER -
The LADD family of fine furniture companies
Lea Industries (BULLET) American Drew (BULLET) Clayton Marcus (BULLET) Barclay
American of Martinsville (BULLET) Kenbridge (BULLET) Pennsylvania House
(BULLET) Pilliod
<PAGE>
that, during the second and third quarters combined, the total debt reduction
was $13.9 million. "Equally important," he said, "our inventories declined by
$8.0 million in the third quarter." He said total inventories were $86.4
million as of September 28, 1996, down from $94.4 million three months earlier.
Headquartered in High Point, NC, LADD is one of the largest North American
manufacturers of residential furniture. The company markets its wide range of
residential wood and upholstered furniture domestically under the major brand
names American Drew, American of Martinsville, Barclay, Clayton Marcus,
Kenbridge, Lea, Pennsylvania House and Pilliod, and exports these same brand
name products worldwide through LADD International. Under the American of
Martinsville name, LADD is also one of the world's leading suppliers of guest
room furniture to the hotel/motel industry, as well as to health care
facilities, retirement homes and governmental and university dormitory markets.
LADD also owns and operates LADD Transportation, a support company. LADD's
stock is traded on the Nasdaq National Market under the symbol LADF.
TABLE FOLLOWS
# # # # # # #
NOTE: To receive fax copies of recent LADD news releases free of charge, just
dial 800-758-5804, extension 501325. These releases are also available via the
Internet @www.prnewswire.com ("Company news").
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LADD FURNITURE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (PRELIMINARY AND UNAUDITED)
<TABLE>
<CAPTION>
13 WEEKS ENDED
SEPT. 28, 1996 SEPT. 30, 1995
<S> <C> <C>
Net sales $ 124,094,000 159,144,000
Earnings before interest
and income taxes 6,461,000 5,030,000
Interest expense 3,182,000 2,997,000
Earnings before income taxes 3,279,000 2,033,000
Income tax expense 1,477,000 142,000
Net earnings $ 1,802,000 1,891,000
Net earnings per common share $ 0.23 0.24
Weighted average number of
common shares outstanding 7,721,165 7,725,805
</TABLE>
<TABLE>
<CAPTION>
39 WEEKS ENDED
SEPT. 28, 1996(A) SEPT. 30, 1995(B)
<S> <C> <C>
Net sales $ 390,034,000 461,521,000
Earnings (loss) before interest
and income taxes 1,577,000 (33,353,000)
Interest expense 8,900,000 8,646,000
Loss before income taxes (7,323,000) (41,999,000)
Income tax benefit 3,295,000 16,591,000
Net loss $ (4,028,000) (25,408,000)
Net loss per common share $ (0.52) (3.29)
Weighted average number of
common shares outstanding 7,722,924 7,718,722
</TABLE>
NOTES:
(A) THE 1996 NINE-MONTH RESULTS INCLUDE A PRETAX RESTRUCTURING CHARGE OF $4.0
MILLION. (B) THE 1995 NINE-MONTH RESULTS INCLUDE A PRETAX RESTRUCTURING CHARGE
OF $25.7 MILLION AND A NON-CASH CHARGE OF $10.2 MILLION.
<PAGE>
Exhibit 10.2
LADD FURNITURE, INC. AND SUBSIDIARIES - SUPPLEMENTAL FINANCIAL
DATA
October 17, 1996 CONTACT: John J. Ong, CFA (910) 888-6353
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
QUARTERS ENDED
IN THOUSANDS, EXCEPT PER SHARE DATA 9/28/96* 6/29/96* 3/30/96* 12/30/95 9/30/95 7/1/95** 4/1/95
<S> <C> <C> <C> <C> <C> <C> <C>
Net sales $124,094 127,096 138,844 152,981 159,144 148,989 153,388
Cost of sales 102,585 103,553 119,264 125,379 130,549 133,492 126,560
Gross profit 21,509 23,543 19,580 27,602 28,595 15,497 26,828
Selling, gen. and admin. expenses 16,852 19,110 21,788 25,792 23,402 28,335 23,816
Restructuring expense (892) (279) 5,149 (576) - 25,696 --
Operating income (loss) 5,549 4,712 (7,357) 2,386 5,193 (38,534) 3,012
Other deductions:
Interest expense 3,182 3,058 2,660 3,152 2,997 2,846 2,803
Other expense (income), net (912) 597 1,642 661 163 2,687 174
2,270 3,655 4,302 3,813 3,160 5,533 2,977
Earnings (loss) before income taxes 3,279 1,057 (11,659) (1,427) 2,033 (44,067) 35
Income tax expense (benefit) 1,477 (108) (4,664) (1,645) 142 (16,744) 11
Net earnings (loss) $ 1,802 1,165 (6,995) 218 1,891 (27,323) 24
Net earnings (loss) per common share $ 0.23 0.15 (0.91) 0.03 0.24 (3.54) 0.00
Weighted average number of common
shares outstanding 7,721 7,723 7,725 7,729 7,726 7,725 7,705
</TABLE>
* THE 1996 QUARTERLY RESULTS REFLECT THE COMPANY'S SALE OF ITS BROWN JORDAN AND
LEA LUMBER & PLYWOOD BUSINESSES EFFECTIVE DECEMBER 29, 1995, AND ITS FOURNIER
FURNITURE BUSINESS EFFECTIVE FEBRUARY 26, 1996.
** THE 1995 SECOND QUARTER RESULTS INCLUDE A PRETAX NON-CASH CHARGE OF $10.2
MILLION, IN ADDITION TO THE $25.7 MILLION PRETAX RESTRUCTURING CHARGE SHOWN.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
DOLLAR AMOUNTS IN THOUSANDS 9/28/96 6/29/96 3/30/96 12/30/95 9/30/95 7/1/95 4/1/95
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Current assets:
Cash $ 1,713 430 1,049 1,272 2,913 1,406 1,787
Trade accounts receivable, net 75,736 72,429 77,579 38,288 45,337 41,347 59,767
Inventories 86,428 94,394 91,386 89,466 86,313 91,127 124,181
Prepaid expenses and other current assets 8,337 17,179 20,263 13,663 10,520 11,670 10,515
Total current assets 172,214 184,432 190,277 142,689 145,083 145,550 196,250
Property, plant and equipment, net 78,543 82,633 82,652 82,586 82,567 83,826 109,014
Businesses held for sale, net -- -- -- 8,052 32,587 31,184 --
Intangible and other assets, net 81,088 79,996 78,900 79,659 76,631 76,515 83,792
$331,845 347,061 351,829 312,986 336,868 337,075 389,056
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current installments of long-term debt $ 5,136 3,511 3,563 309 558 618 657
Short-term bank borrowings -- -- 5,000 3,037 2,450 1,950 5,025
Trade accounts payable 27,766 31,373 25,984 28,419 26,517 24,059 25,041
Accrued expenses and other current liabilities 28,965 32,858 32,620 31,396 30,629 29,814 32,267
Total current liabilities 61,867 67,742 67,167 63,161 60,154 56,441 62,990
Long-term debt, excluding current installments 138,234 149,637 148,687 112,598 140,182 145,287 153,102
Deferred compensation and other liabilities 2,653 2,515 8,211 6,593 7,053 7,000 6,402
Deferred income taxes 7,605 7,530 9,338 5,437 4,255 4,769 15,386
Total liabilities 210,359 227,424 233,403 187,789 211,644 213,497 237,880
Total shareholders' equity 121,486 119,637 118,426 125,197 125,224 123,578 151,176
$331,845 347,061 351,829 312,986 336,868 337,075 389,056
</TABLE>
ALL SHARE AND PER SHARE DATA HAVE BEEN RESTATED TO REFLECT A 1-FOR-3 REVERSE
SPLIT OF LADD'S COMMON STOCK, WHICH BECAME EFFECTIVE ON MAY 16, 1995. THE
PERIOD ENDED MARCH 30, 1996 REFLECTS THE TERMINATION OF THE COMPANY'S ACCOUNTS
RECEIVABLE SECURITIZATION PROGRAM EFFECTIVE MARCH 28, 1996.
