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) April 20, 1998
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LADD FURNITURE, INC.
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(Exact name of registrant as specified in its charter)
North Carolina 0-11577 56-1311320
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(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of Incorporation)
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4620 Grandover Parkway, P.O. Box 26777, Greensboro, North Carolina 27417-6777
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(Address of principal executive offices) (Zip Code)
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REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (336) 294-5233
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(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 April 20, 1998, the Registrant issued a press release
reporting its 1998 first quarter results of operations. The press release is
attached hereto as Exhibit 10.1 and the supplemental financial data submitted to
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 April 20, 1998.
10.2 Supplemental Financial Data submitted to
stock analysts dated April 20, 1998.
2
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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 21, 1998 By: /s/William S. Creekmuir
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William S. Creekmuir
Title: Executive Vice President, Chief Financial
Officer, Treasurer and Secretary
LADD NEWS RELEASE
Furniture, Inc. FOR IMMEDIATE RELEASE
4620 Grandover Parkway - Box 26777 April 20, 1998
Greensboro, NC 27417-6777 Contact: John J. Ong
(336) 315-4049
E-mail:[email protected]
LADD REPORTS SHARP FIRST QUARTER EARNINGS GAIN
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GREENSBORO, NC--LADD Furniture, Inc. today reported a 19 percent increase
in its 1998 first quarter net sales and a 350 percent earnings increase compared
to the first quarter of 1997. For the three months ended April 4, 1998, net
sales totaled $147.4 million, up from $123.4 million in the first quarter of
1997. Net earnings for 1998's initial quarter were $2.4 million, or $0.30 per
share, compared to $520,000, or $0.07 per share, in the first quarter of fiscal
1997.
LADD president and CEO Fred L. Schuermann, Jr. said, "This year has started
out very well for our industry, with retail furniture sales around the country
showing excellent year-over-year gains, and LADD participated fully in this
strength during the first quarter. We were especially pleased with the
acceleration in our residential furniture sales, particularly casegoods (wood
furniture), where first quarter sales rose nearly 18 percent compared to the
same period of 1997."
Schuermann added that LADD's residential upholstery sales for the first
quarter were 8 percent higher than in the same period of 1997. He attributed the
sales gains to a combination of attractive new LADD product lines, an expanded
market presence and the general improvement experienced by the industry. "It was
especially gratifying to see our residential furniture orders increase more than
25 percent in the first quarter. Reflecting this strong order inflow, our
residential order backlog ended the quarter 35 percent ahead of its year-earlier
level." He noted that the company's contract furniture business, American of
Martinsville, continues to do extremely well, with its first quarter sales
rising 41 percent.
Schuermann added, "We are pleased with the strong earnings gain achieved in
the first quarter, although LADD's profitability levels remain below
management's long-term goals. We are continuing to work hard on strengthening
our margins moving forward." Referring to the International Home Furnishings
Market, which begins this week in High Point, NC, he said, "Everything we are
currently seeing and hearing suggests the upcoming furniture market should be a
good one. If so, and if we are as successful with our new market introductions
as we anticipate, this will have a continuing positive impact on LADD's sales
momentum in the second half of 1998 and on into 1999."
-over-
The LADD family of fine furniture companies
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Lea Industries (bullet) American Drew (bullet) Clayton Marcus
Barclay (bullet) American of Martinsville (bullet) Pennsylvania House (bullet)
Pilliod
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Executive vice president and chief financial officer William S. Creekmuir
reported that LADD's total debt declined to $120.9 million at April 4, 1998 from
$125.4 million three months earlier and $129.4 million at the end of 1997's
first quarter. Creedmuir said, "We are continuing to make steady progress toward
reducing the company's financial leverage." Creekmuir added that, due to the
lower debt level and interest rate reductions, LADD's first quarter interest
expense declined by $421,000 or 14 percent compared to the first quarter of
1997.
Headquartered in Greensboro, 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 industry, as well
as to health care and assisted-living facilities and governmental 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 and information on
the company can be found on the Internet at www.laddfurniture.com.
TABLE FOLLOWS
# # # # # # #
FORWARD-LOOKING STATEMENTS: This news release contains forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act of
1934. Such statements are dependent on a number of factors which could cause
actual results to differ materially from those expressed or implied in the
forward-looking statements. Such factors include anticipated sales growth
resulting from a more robust retailing climate and the company's new product
introductions, in addition to those factors set forth in the company's required
filings with the U.S. Securities and Exchange Commission.
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
company's Internet site at www.laddfurniture.com ("company news").
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LADD FURNITURE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (PRELIMINARY AND UNAUDITED)
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Quarter Ended
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Mar. 29, 1997 Apr. 4, 1998
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Net sales* $ 123,368,000 147,409,000
Earnings before interest and income taxes 3,858,000 6,452,000
Interest expense 3,005,000 2,584,000
Earnings before income taxes 853,000 3,868,000
Income tax expense 333,000 1,508,000
Net earnings $ 520,000 2,360,000
Net earnings per common share - basic $ 0.07 0.30
Net earnings per common share - diluted $ 0.07 0.30
Weighted average number of
common shares outstanding 7,719,567 7,759,955
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*Net sales by business group were as follows (000's):
Quarter Ended
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Mar. 29, 1997 Apr. 4, 1998
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Casegoods $ 68,550 80,582
Upholstrey 31,573 34,123
Contract 23,245 32,704
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Total $ 123,368 147,409
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LADD FURNITURE, INC. AND SUBSIDIARIES - SUPPLEMENTAL FINANCIAL DATA
April 20, 1998 Contact: John J. Ong, CFA (336) 315-4049
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
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Quarters Ended
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In thousands, except per share data 3/29/97 6/28/97 9/27/97 1/3/98 4/4/98
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Net sales $ 123,368 125,572 129,935 146,625 147,409
Cost of sales 101,437 101,393 106,791 119,429 120,733
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Gross profit 21,931 24,179 23,144 27,196 26,676
Selling, general and administrative expenses 17,552 18,561 17,794 20,328 20,350
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Operating income 4,379 5,618 5,350 6,868 6,326
Other deductions
Interest expense 3,005 2,719 2,701 2,817 2,584
Other, net 521 194 (199) 276 (126)
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3,526 2,913 2,502 3,093 2,458
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Earnings before income taxes 853 2,705 2,848 3,775 3,868
Income tax expense 333 1,055 1,110 1,371 1,508
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Net earnings $ 520 1,650 1,738 2,404 2,360
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Net earnings per common share - basic $ 0.07 0.21 0.22 0.31 0.30
Net earnings per common share - diluted $ 0.07 0.21 0.22 0.31 0.30
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Weighted average number of common
shares outstanding 7,720 7,737 7,758 7,760 7,760
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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
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Dollar amounts in thousands 3/29/97 6/28/97 9/27/97 1/3/98 4/4/98
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ASSETS
Current assets:
Cash $ 151 191 659 75 114
Trade accounts receivable 72,786 71,016 83,865 83,297 91,709
Inventories 89,260 97,091 94,819 93,189 95,101
Prepaid expenses and other current assets 6,831 7,536 6,923 8,016 8,646
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Total current assets 169,028 175,834 186,266 184,577 195,570
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Property, plant and equipment 68,580 67,648 66,708 67,530 66,255
Intangible and other assets 80,551 79,668 77,796 77,083 76,333
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$318,159 323,150 330,770 329,190 338,158
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current installments of long-term debt $ 6,676 6,633 4,965 6,807 11,476
Trade accounts payable 25,120 26,807 27,080 29,488 37,217
Accured expenses and other current liabilities 33,552 30,030 36,203 31,952 33,925
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Total current liabilities 65,348 63,470 68,248 68,247 82,618
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Long-term debt, excluding current installments 122,694 121,231 123,565 118,586 109,390
Deferred and other liabilities 5,639 12,027 10,481 11,432 12,826
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Total labilities 193,681 196,728 202,294 198,265 204,834
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Total shareholders' equity 124,478 126,422 128,476 130,925 133,324
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$318,159 323,150 330,770 329,190 338,158
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