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) March 21, 1997
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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
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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 March 21, 1997, the Registrant issued a press release
reporting the sale of its Monroe, NC upholstery manufacturing facility for $5.3
million as well as entering into a seven year agreement to lease the facility
back with options to renew. The net proceeds from the sale of $5.1 million were
utilized to pay down the Registrant's term loan. The press release is attached
hereto as Exhibit 10.1.
On April 15, 1997, the Registrant issued a press release
reporting its first quarter 1997 results of operations. The press release is
attached hereto as Exhibit 10.2 and supplemental financial data submitted to
stock analysts is attached as Exhibit 10.3.
ITEM 6. RESIGNATIONS OF REGISTRANT'S DIRECTORS.
Not Applicable.
2
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
a) Exhibits
10.1 Press Release dated March 21, 1997.
10.2 Press Release dated April 15, 1997.
10.3 Supplemental Financial Data submitted to stock
analysts dated April 15, 1997.
ITEM 8. CHANGE IN FISCAL YEAR.
Not Applicable.
3
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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: April 17, 1997 By: /s/William S. Creekmuir
-----------------------
William S. Creekmuir
Title: Executive Vice President, Chief Financial
Officer, Treasurer and Secretary
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LADD
Furniture, Inc.
One Plaza Center Box HP3
High Point, NC 27261-1500
NEWS RELEASE
FOR IMMEDIATE RELEASE
March 21, 1997
Contact: John J. Ong
(910) 888-6353
E-Mail: [email protected]
LADD COMPLETES SALE/LEASEBACK OF MONROE, NC PLANT
HIGH POINT, NC--LADD Furniture, Inc. president and chief executive
officer Fred L. Schuermann, Jr. announced today that LADD has sold its Monroe,
NC upholstery manufacturing facility to a private partnership, Claire and Hunt
Broyhill, L.L.C., for $5.3 million. LADD has also entered into a long-term
contractual agreement to lease the facility back from the partnership and will
continue producing residential upholstery at the plant.
Commenting on today's announcement, Schuermann said, "We have been
working hard to improve LADD's profitability and strengthen the company's
financial position. The sale and leaseback of this modern facility will free up
cash with which to further reduce our debt, without affecting our manufacturing
operations in any way whatsoever." Schuermann noted that LADD's total debt has
been reduced by more than $26 million since the end of last year's first
quarter.
Built on 29 1/2 acres of land in Monroe, NC in 1981, the plant was
expanded to its current size of 263,000-square feet in 1991. LADD originally
acquired the facility in 1989 as part of its acquisition of the Maytag Furniture
Group.
Headquartered in High Point, NC, LADD is one of the largest North
American manufacturers of residential furniture. The company markets its wide
range of wood and upholstered furniture domestically under the major brand names
American Drew, Barclay, Clayton Marcus, 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 Stock Market under the symbol
LADF.
# # # # # # #
NOTE: To receive fax copies of other recent LADD news releases free of charge,
just dial 800-758-5804, extension 501325. These same releases are also available
on the Internet @ http://www.prnewswire.com ("Company news").
Exhibit 10.2
NEWS RELEASE
FOR IMMEDIATE RELEASE
April 15, 1997
LADD
Furniture, Inc. Contact: John J. Ong
(910) 888-6353
One Plaza Center Box HP3 E-mail: [email protected]
High Point, NC 27261-1500
LADD REPORTS FIRST QUARTER PROFIT IMPROVEMENT
HIGH POINT, NC -- LADD Furniture, Inc. today reported net earnings of
$520,000 or $0.07 per share for the first quarter of fiscal 1997, compared to a
net loss of $7.0 million or $0.91 per share in the comparable quarter of fiscal
1996. The 1996 first quarter loss was partially due to a $5.1 million pretax
restructuring charge and $2.1 million in pretax losses attributable to two
companies that were in the process of being divested.
Net sales for this year's first quarter were $123.4 million, down from
$135.3 million a year earlier. The first quarter sales decline largely reflects
the inclusion of the net sales of the divestiture companies in the 1996 quarter
and not in the 1997 quarter. Exclusive of the divested companies, first quarter
net sales for 1997 were down $1.3 million or approximately 1 percent compared to
the year-earlier period.
LADD president and CEO Fred L. Schuermann, Jr. said, "This year started
out on a weak sales note, with retail furniture demand quite soft on a
nationwide basis. As a result, orders declined in the early part of the first
quarter as our retail customers worked to control their inventories. While our
order levels have improved since early 1997, business at retail is still less
buoyant than we would have expected given the recent strength in U.S. housing
activity and consumer confidence." Schuermann indicated he was satisfied with
LADD's first quarter profit performance, given the sluggish quarterly sales
figure, and said he remains positive regarding the outlook for the rest of the
year. He added, "We are very pleased with the response we received to our new
product offerings at the High Point International Home Furnishings Market, which
began last week." He noted that the market has been a very successful one for
LADD's individual companies, and said this should have a positive impact on
overall sales in the second half of 1997.
Executive vice president and chief financial officer William S.
Creekmuir reported that LADD's total debt declined to $129.4 million at March
29, 1997 from $131.0 million three months earlier. "Despite an increase of $6.8
million in net operating working capital," Creekmuir said, "we were able to
reduce total debt during the quarter through the application of $5.1 million of
cash proceeds from the sale/leaseback of our Monroe, NC upholstery manufacturing
facility during March, along with cash generated by operations." He
- more -
The LADD family of fine furniture companies
Lea Industries (bullet) American Drew (bullet) Clayton Marcus
Barclay (bullet) American of Martinsville (bullet) Pennsylvania House
(bullet) Pilliod
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added, "The working capital increase in the first quarter was primarily due to a
$5.1 million increase in net shipments compared to the final three months of
1996, which increased accounts receivable, as well as increased inventories in
our American of Martinsville contract business." Creekmuir pointed out that
American of Martinsville is continuing to experience very strong sales and order
growth, and has intentionally built inventories to meet this demand.
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, Barclay, Clayton Marcus, 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 and assisted-living 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").
<PAGE>
LADD FURNITURE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (PRELIMINARY AND UNAUDITED)
<TABLE>
<CAPTION>
Quarter Ended
March 30, 1996 March 29, 1997
<S> <C> <C>
Net sales (1) $ 135,260,000 123,368,000
Restructuring expense 5,149,000 --
Earnings (loss) before interest and income taxes (8,999,000) 3,858,000
Interest expense 2,660,000 3,005,000
Earnings (loss) before income taxes (11,659,000) 853,000
Income tax expense (benefit) (4,664,000) 333,000
Net earnings (loss) $ (6,995,000) 520,000
Net earnings (loss) per common share $ (0.91) 0.07
Weighted average number of
common shares outstanding 7,724,770 7,719,567
</TABLE>
The 1996 first quarter results reflect the company's sale of its Fournier
Furniture business effective February 26, 1996.
(1) Net sales by business group were as follows:
Casegoods $ 72,343,000 68,550,000
Upholstery 34,769,000 31,573,000
Contract 17,546,000 23,245,000
Divestiture companies 10,602,000 --
Total $135,260,000 123,368,000
LADD FURNITURE, INC. AND SUBSIDIARIES - Supplemental Financial Data
April 15, 1997 CONTACT: John J. Ong, CFA (910) 888-6353
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
Quarters Ended
In thousands, except per share data 3/30/96* 6/29/96 9/28/96 12/28/96 3/29/97
<S> <C> <C> <C> <C> <C>
Net sales $135,260 123,483 120,447 118,267 123,368
Cost of sales 116,038 100,220 99,369 96,070 100,873
Gross profit 19,222 23,263 21,078 22,197 22,495
Selling, general and administrative expenses 21,788 19,110 16,852 16,613 17,552
Restructuring expense 5,149 (279) (892) (547) --
Operating income (loss) (7,715) 4,432 5,118 6,131 4,943
Other deductions:
Interest expense 2,660 3,058 3,182 3,169 3,005
Other deductions (income), net 1,284 317 (1,343) 141 1,085
3,944 3,375 1,839 3,310 4,090
Earnings (loss) before income taxes (11,659) 1,057 3,279 2,821 853
Income tax expense (benefit) (4,664) (108) 1,477 1,263 333
Net earnings (loss) $ (6,995) 1,165 1,802 1,558 520
Net earnings (loss) per common share $ (0.91) 0.15 0.23 0.20 0.07
Weighted average number of common
shares outstanding 7,725 7,723 7,721 7,720 7,720
</TABLE>
* The 1996 quarterly results reflect the company's sale of its Fournier
Furniture business effective February 26, 1996, and the liquidation of its
Daystrom Furniture business during the second half of the year.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
Dollar amounts in thousands 3/30/96 6/29/96 9/28/96 12/28/96 3/29/97
<S> <C> <C> <C> <C> <C>
Assets
Current assets:
Cash $ 1,049 430 1,713 469 151
Trade accounts receivable, net 77,579 72,429 75,736 66,730 72,786
Inventories 91,386 94,394 86,428 84,484 87,825
Prepaid expenses and other current assets 20,263 17,179 8,337 5,768 6,831
Total current assets 190,277 184,432 172,214 157,451 167,593
Property, plant and equipment, net 82,652 82,633 78,543 74,729 68,580
Intangible and other assets, net 78,900 79,996 81,088 81,415 80,551
$351,829 347,061 331,845 313,595 316,724
Liabilities and Shareholders' Equity
Current liabilities:
Current installments of long-term debt $ 3,563 3,511 5,136 5,093 6,676
Short-term bank borrowings 5,000 -- -- -- --
Trade accounts payable 25,984 31,373 27,766 24,358 25,120
Accrued expenses and other current liabilities 32,620 32,858 28,965 30,084 32,940
Total current liabilities 67,167 67,742 61,867 59,535 64,736
Long-term debt, excluding current installments 148,687 149,637 138,234 125,859 122,694
Deferred and other liabilities 17,549 10,045 10,258 5,125 5,639
Total liabilities 233,403 227,424 210,359 190,519 193,069
Total shareholders' equity 118,426 119,637 121,486 123,076 123,655
$351,829 347,061 331,845 313,595 316,724
</TABLE>
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