Furniture Brands International Inc. (FBN) filed Quarterly Report for the period ended 2009-09-30.
Furniture Brands InternationalInc. is one of the largest manufacturers of residential furniture in the United States. They market products through three operating subsidiaries: Broyhill Furniture IndustriesInc.Lane Furniture IndustriesInc.and Thomasville Furniture IndustriesInc. Furniture Brands International Inc. has a market cap of $208.48 million; its shares were traded at around $4.28 with and P/S ratio of 0.12.
Highlight of Business Operations:
Net sales for the three months ended September 30, 2009 were $293.7 million, compared to $412.8 million in the three months ended September 30, 2008, a decrease of $119.1 million or 28.9%. Net sales for the nine months ended September 30, 2009 were $938.8 million, compared to $1,339.8 million in the nine months ended September 30, 2008, a decrease of $401.0 million or 29.9%. The decrease in net sales in both the three and nine month periods was driven by weak retail conditions and decisions to abandon unprofitable products, customers, and programs, resulting in lower sales volume, and by higher price discounts.
Gross profit for the three months ended September 30, 2009 was $67.7 million compared to $67.1 million for the three months ended September 30, 2008. Gross profit for the nine months ended September 30, 2009 was $209.7 million compared to $278.5 million for the nine months ended September 30, 2008. The increase in gross profit in the three month period ended September 30, 2009 is primarily attributable to product write downs recorded in the third quarter of 2008, offset by lower sales volume and higher price discounts in the third quarter of 2009 as compared to 2008. The decline in gross profit in the nine month period is primarily attributable to lower sales volume and higher price discounts, partially offset by reductions in product write-downs.
Selling, general, and administrative expenses for the three months ended September 30, 2009 were $89.2 million compared to $129.2 million in the three months ended September 30, 2008. Selling, general, and administrative expenses for the nine months ended September 30, 2009 were $248.4 million compared to $363.2 million in the nine months ended September 30, 2008. The decrease in selling, general, and administrative costs in both the three and nine month periods was primarily due to lower compensation and incentive plan costs, advertising expenses, bad debt expense, and professional fees.
Interest expense totaled $1.0 million and $4.3 million for the three and nine months ended September 30, 2009, respectively, compared to $2.9 million and $9.9 million for the three and nine months ended September 30, 2008, respectively. The decrease in interest expense in both the three and nine month periods resulted from reduced long-term debt and lower interest rates.
Loss per common share from continuing operations was $0.48 and $0.90 for the three and nine months ended September 30, 2009, respectively, compared to $0.86 and $1.27 for the three and nine month periods ended September 30, 2008, respectively. Weighted average common shares outstanding used in the calculation of net earnings per common share were 48.7 million for both the three and nine months ended September 30, 2009, and 48.8 million and 48.7 million for the three and nine months ended September 30, 2008, respectively.
Cash and cash equivalents totaled $76.5 million at September 30, 2009 compared to $106.6 million at December 31, 2008. Net cash provided by operating activities for the nine months ended September 30, 2009 totaled $61.8 million compared with $26.5 million for the nine months ended September 30, 2008. Lower net losses from operations and higher receipt of income tax refund receivable contributed increased cash flow from operations in the nine months ended September 30, 2009 as compared to 2008, but were offset by lower cash generated from working capital and payments of long-term incentive compensation in the first quarter of 2009. Net cash used by investing activities for the nine months ended September 30, 2009 totaled $3.9 million compared with net cash provided by investing activities of $51.1 million in the nine months ended September 30, 2008. The decrease in cash provided by investing activities is primarily the result of a reduction of proceeds from the sale of business in the nine months ended September 30, 2009 as compared to 2008, partially offset by fewer acquisitions of stores requiring cash payments and fewer additions to property, plant and equipment in the nine months ended September 30, 2009 as compared to 2008. Net cash used by financing activities totaled $88.0 million in the nine months ended September 30, 2009 compared with $86.7 million in the nine months ended September 30, 2008. Net cas
FBN is in the portfolios of Donald Yacktman of Yacktman Asset Management Co..
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