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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 13, 1999
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LADD FURNITURE, INC.
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(Exact name of registrant as specified in its charter)
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North Carolina 0-11577 56-1311320
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<S> <C> <C>
(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 13, 1999, the Registrant issued a press release reporting its
1999 first quarter results of operations. The press release is attached hereto
as Exhibit 99.1 and the supplemental financial data submitted to stock analysts
is attached as Exhibit 99.2.
ITEM 6. RESIGNATIONS OF REGISTRANT'S DIRECTORS.
Not Applicable.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
a) Exhibits
99.1 Press Release dated April 13, 1999.
99.2 Supplemental Financial Data submitted to stock
analysts dated April 13, 1999.
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 14, 1999 By: /s/William S. Creekmuir
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William S. Creekmuir
Title: Executive Vice President, Chief
Financial Officer, Treasurer and Secretary
4
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EXHIBIT 99.1
[LOGO] NEWS RELEASE
FOR IMMEDIATE RELEASE
April 13, 1999
Contact: John J. Ong
(336) 315-4049
4620 Grandover Parkway - Box 26777 e-mail: [email protected]
Greensboro, NC 27417-6777
LADD FIRST QUARTER EARNINGS JUMP 52 PERCENT
GREENSBORO, NC -- LADD Furniture, Inc. reported today that its net
earnings for the first quarter of fiscal 1999 rose 52 percent, to $3.6 million,
from $2.4 million in the first quarter of 1998. Fully diluted net earnings per
share for the quarter rose 50 percent, to $0.45 in 1999, from $0.30 per share a
year earlier. Total first quarter net sales rose 7 percent from a year earlier,
to $157.1 million in 1999 from $147.4 million in 1998, with residential
furniture sales increasing 4 percent and contract sales rising 16 percent.
LADD chairman, president and CEO Fred L. Schuermann, Jr. said he was
very pleased with the sales gains for the quarter, particularly since LADD's
sales in the first three months of 1998 had been unusually strong. "Equally
gratifying," Schuermann said, "is the fact that our year-over-year profitability
continued to improve, with first quarter gross margin rising to 19.2% in 1999
from 18.1% in 1998 and 17.8% in 1997 - extending our three-plus year trend of
steadily improving financial results." Schuermann noted that, due to seasonality
factors primarily affecting the contract business, LADD's sales and profit
margins are normally at their lowest in the first quarter of each year.
"In addition to the sales increase and the improved gross margin," he
said, "first quarter profits were also helped by a 21 percent decline in first
quarter interest expense as a result of further debt reduction and lower
interest rates." Schuermann said LADD's total debt was reduced by a little over
$2 million during the first quarter, despite a $3.7 million increase in net
working capital during the quarter. "In short," he said, "we again made
substantial progress in the first quarter against all three of our primary
financial objectives by virtue of increasing our sales, improving our profit
margins and reducing our debt."
Commenting on the overall tone of business, Schuermann said, "The
current year has started out well for our industry, and furniture retailers
around the country have been experiencing fairly robust consumer demand. The
economic and financial variables which influence consumer furniture buying
patterns are all positive at this point, along
- more -
The LADD family of fine furniture companies
Lea Industries * American Drew * Clayton Marcus
Barclay * American of Martinsville * Pennsylvania House * Pilliod
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with consumer confidence itself - as measured by the monthly Conference Board
survey. As a result, we currently see no reason why our industry should not
enjoy another excellent year in 1999. We are eagerly looking forward to the
start of the International Home Furnishings Market in High Point (NC) this week,
and I believe the LADD product lineup for this upcoming spring furniture market
is as strong as I've ever seen it."
Headquartered in Greensboro, NC, LADD is one of the largest residential
furniture manufacturers in North America. The company markets its wide range of
bedroom, dining room, occasional and upholstered furniture domestically under
the major brand names American Drew, Barclay,Clayton Marcus, Lea, Pennsylvania
House and Pilliod, and exports these products worldwide through LADD
International. LADD's contract sales group, doing business as American of
Martinsville, is also one of the world's leading suppliers of guest room
furniture to the hospitality industry, as well as to assisted- living
(retirement) facilities and governmental markets. LADD also owns and operates
LADD Transportation,a support company. LADD's stock is traded on the Nasdaq
Market under the symbol LADF and information on the company can be found on the
Internet at www.laddfurniture.com.
# # # # # # #
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 the company's ability to
continue its sales growth, further improve its profitability and reduce its
debt, in addition to those factors set forth in the company's required filings
with the U.S. Securities and Exchange Commission.
TABLE FOLLOWS
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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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APR. 3, 1999 Apr. 4, 1998
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Net sales(*) $157,144,000 147,409,000
Earnings before interest, income taxes,
depreciation and amortization ("EBITDA") 11,443,000 10,004,000
Earnings before interest and income taxes 7,850,000 6,452,000
Interest expense 2,048,000 2,584,000
Earnings before income taxes 5,802,000 3,868,000
Net earnings $ 3,597,000 2,360,000
Net earnings per common share - basic $ 0.46 0.30
Net earnings per common share - diluted $ 0.45 0.30
Weighted average number of
common shares outstanding - basic 7,840,371 7,759,955
Weighted average number of
common shares outstanding - diluted 7,950,706 7,940,477
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(*)Net sales by business segment were as follows (000's):
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Quarter Ended
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Apr. 3, 1999 Apr. 4, 1998
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Residential $ 119,203 114,705
Contract 37,941 32,704
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Total $ 157,144 147,409
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EXHIBIT 99.2
LADD FURNITURE, INC. AND SUBSIDIARIES - SUPPLEMENTAL FINANCIAL DATA
APRIL 13, 1999 CONTACT: JOHN J. ONG, CFA (336) 315-4049
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (PRELIMINARY AND UNAUDITED)
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Quarters Ended
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In thousands, except per share data 4/3/99 1/2/99 10/3/98 7/4/98 4/4/98
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Net sales $ 157,144 145,253 142,896 135,505 147,409
Cost of sales 126,973 116,713 115,160 108,173 120,733
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Gross profit 30,171 28,540 27,736 27,332 26,676
Selling, general and administrative expenses 22,416 20,286 19,932 19,947 20,350
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Operating income 7,755 8,254 7,804 7,385 6,326
Other deductions:
Interest expense 2,048 2,123 2,220 2,371 2,584
Other expense (income), net (95) 43 148 310 (126)
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1,953 2,166 2,368 2,681 2,458
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Earnings before income taxes 5,802 6,088 5,436 4,704 3,868
Income tax expense 2,205 2,377 2,117 1,835 1,508
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Net earnings $ 3,597 3,711 3,319 2,869 2,360
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Net earnings per common share - basic $ 0.46 0.47 0.42 0.37 0.30
Net earnings per common share - diluted $ 0.45 0.47 0.41 0.35 0.30
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Weighted average number of common
shares outstanding - basic 7,840 7,831 7,831 7,812 7,760
Weighted average number of common
shares outstanding - diluted 7,951 7,922 8,034 8,165 7,940
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CONDENSED CONSOLIDATED BALANCE SHEETS (PRELIMINARY AND UNAUDITED)
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Dollar amounts in thousands 4/3/99 1/2/99 10/3/98 7/4/98 4/4/98
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ASSETS
Current assets:
Cash $ 147 110 156 89 114
Trade accounts receivable 99,008 90,286 94,861 85,253 91,709
Inventories 103,699 98,798 103,353 102,129 95,101
Prepaid expenses and other current assets 8,168 8,771 7,124 9,514 8,646
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Total current assets 211,022 197,965 205,494 196,985 195,570
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Property, plant and equipment 65,408 66,297 66,189 66,406 66,255
Intangible and other assets 70,907 72,703 73,836 74,431 76,333
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$347,337 336,965 345,519 337,822 338,158
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current installments of long-term debt $ 6,590 6,590 6,590 6,590 11,476
Trade accounts payable 36,339 31,296 36,982 36,317 37,217
Accrued expenses and other current liabilities 41,710 37,384 38,617 35,252 33,925
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Total current liabilities 84,639 75,270 82,189 78,159 82,618
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Long-term debt, excluding current installments 102,420 104,585 109,540 109,629 109,390
Deferred and other liabilities 12,107 12,589 13,067 12,657 12,826
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Total liabilities 199,166 192,444 204,796 200,445 204,834
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Total shareholders' equity 148,171 144,521 140,723 137,377 133,324
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$347,337 336,965 345,519 337,822 338,158
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