Form 8-K
0001077688 False 0001077688 2024-04-11 2024-04-11 iso4217:USD xbrli:shares iso4217:USD xbrli:shares
 

UNITED STATES

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 11, 2024

_______________________________

Hooker Furnishings Corporation

(Exact name of registrant as specified in its charter)

_______________________________

Virginia000-2534954-0251350
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

440 East Commonwealth Boulevard

Martinsville, Virginia 24112

(Address of Principal Executive Offices) (Zip Code)

(276) 632-2133

(Registrant's telephone number, including area code)

 

(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, no par valueHOFTNASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 
 
Item 2.02. Results of Operations and Financial Condition.

On April 11, 2024, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.
      
99.1 Press Release dated April 11, 2024
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 

SIGNATURE

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.

 Hooker Furnishings Corporation
   
  
Date: April 11, 2024By: /s/ Paul A. Huckfeldt        
  Paul A. Huckfeldt
  Chief Financial Officer and
Senior Vice-President - Finance and Accounting
  

 

EdgarFiling

EXHIBIT 99.1

Hooker Furnishings Reports Improved Profitability in 2024 Fiscal Year

MARTINSVILLE, Va., April 11, 2024 (GLOBE NEWSWIRE) -- Hooker Furnishings Corporation (NASDAQ-GS: HOFT) (the “Company” or “HFC”), a global leader in the design, production, and marketing of home furnishings for 100 years, today reported operating results for its fiscal 2024 fourth quarter and full year ended January 28, 2024.

Fiscal 2024 and the fourth quarter overview:

Management Commentary

“We’re proud of our team’s accomplishments and discipline during a challenging year, as we successfully restructured our HMI business model, improved profitability and strengthened our balance sheet,” said Jeremy Hoff, chief executive officer. “At the same time, we reinforced belief in our strategic growth initiatives by continuing to make the necessary investments to fuel long-term growth and sustainability.”

“Fiscal 2024 marked the third full fiscal year since the initial COVID crisis and was a pivotal year for us,” Hoff said. “Since 2020, we have navigated through some of the most volatile macroeconomic conditions of our 100-year history: the severe initial downturn of the pandemic followed by a demand surge for home furnishings, supply chain disruptions, inventory unavailability, historically high ocean freight costs, significant inflation, higher interest rates, a sluggish housing market and a temporary shift in discretionary spending away from home furnishings. Against the backdrop of these disruptions and recent weak industry-wide demand, we’ve strengthened our financial position, made strategic investments to expand our addressable market and continued our over 50-year history of dividend payments, including our eighth consecutive annual dividend increase,” Hoff said.

“As we celebrate our 100th year in business, the adaptability that’s been integral to our culture since 1924 continues to be vital to our success today and will drive us forward as we start our next century. As part of that adaptability, Hooker was pleased to welcome Caroline Hipple as Chief Creative Officer last week. An industry veteran with more than 45 years of retail, sales, marketing, and creative merchandising experience, Caroline joins the company most recently from Norwalk Furniture, where she served eight years as president. Under her leadership, Norwalk experienced significant growth. She’ll lead Hooker’s existing team of very talented merchandisers and designers in repositioning our legacy brands, including newly acquired Sunset West and BOBO Intriguing Objects, to deliver a more integrated and aspirational presentation in their approach to the market. We believe this move will position Hooker as a whole-home, consumer centric resource to its customers and ultimately drive increased sales and earnings when demand returns.”

Segment Reporting: Hooker Branded

Hooker Branded Segment net sales decreased by $49.3 million or 24.0% compared to the prior fiscal year, primarily due to decreased sales volume resulting from soft demand for home furnishings. This decrease was further amplified by the strong sales in the prior year, driven by a surge in demand after the initial COVID crisis, and fulfillment of historically high order backlog carried over from fiscal 2022.

Despite the sales decrease, gross margins increased significantly due to the combination of reduced ocean freight costs and the lingering impact of price increases implemented in the prior year. For fiscal 2024, Hooker Branded achieved a $16.8 million operating income with a 10.8% operating margin, compared to $22 million and a 10.7% operating income margin last year.

For the fiscal 2024 fourth quarter, net sales decreased by $14.1 million or 27.3% compared to the prior-year fourth quarter. While incoming orders remained flat compared to last year’s fourth quarter, the backlog was 25% lower than the previous year-end but remained 40% higher than the fiscal 2020 year-end.

In April 2023, we relocated and expanded our High Point Showroom to create a wider audience for our Hooker Legacy and Sunset West product lines, while opening smaller showrooms in Las Vegas and Atlanta. We set attendance records at both the Spring and Fall High Point Markets with year-over-year increases of 92% and 86% respectively. The collective impact of our new showrooms in these markets has more than quadrupled our customer contacts annually, helping us set a pace of opening 150 new customer accounts on average per month.

Segment Reporting: Home Meridian (HMI)

Home Meridian Segment net sales decreased by $72.8 million, or 33.7% compared to the prior fiscal year due to soft demand for home furnishings, which resulted in reduced sales across all channels, including traditional furniture chains, mass merchants, and e-commerce.

Additionally, the exit of unprofitable businesses accounted for approximately 26% of the sales decrease within the segment. On a positive note, SLH achieved robust sales growth with a 38% increase, as the hospitality market experiences a strong rebound. Despite reduced revenue, gross profit was $24.4 million, compared to a gross loss of $2.6 million in the prior year. This significant improvement was primarily due to the absence of the $24.4 million write-down of ACH inventories and other excess inventories. “We made significant progress in restructuring HMI to focus on its core businesses and product lines, allowing the segment to achieve profitability in the third quarter for the first time since calendar year 2021 and to improve fiscal year gross profit, setting it on what we believe is a path of sustained profitability”, Hoff added. The segment reported an operating loss of $5.5 million (3.9%), a $31.7 million improvement from the prior year.

For the fiscal 2024 fourth quarter, net sales decreased by $15.6 million or 35% compared to the prior-year fourth quarter.

“Increased incoming orders at HMI outpaced all segments, increasing by over $74 million, more than doubling compared to the prior year,” said Hoff. “Improving demand is an affirmation of HMI’s efforts to strengthen product offerings and focus on the core profitable businesses of Pulaski, PRI and Samuel Lawrence/SLH,” he added.

To a lesser extent, the absence of order cancellations from exited businesses in the current year impacted order improvements at HMI. The year-end backlog was 16% lower than the previous year end but increased by 30% compared to fiscal 2024 third quarter end.

Segment Reporting: Domestic Upholstery

The Domestic Upholstery Segment’s net sales decreased by $29.9 million, or 19.1% compared to the all-time record sales this segment achieved in the prior fiscal year due to fulfillment of an historically high order backlog. All four divisions experienced sales decreases driven by reduced demand.

Both gross profit and margin decreased due to a combination of lower net sales and under-absorbed overhead when operating at a reduced production level during the year. On a more positive note, all four divisions benefited from more stable raw material costs.

For the fiscal 2024 fourth quarter, net sales decreased by $5.5 million or 16.2% compared to the prior year fourth quarter.

Incoming orders increased across all four divisions in fiscal 2024. The year-end order backlog was 36% lower than the prior year-end. Domestic Upholstery backlog remained 7% higher than the fiscal 2020 year-end, excluding Sunset West which was acquired on the first day of the Company’s 2023 fiscal year (calendar 2022).

Cash, Debt, and Inventory

Cash and cash equivalents stood at $43.2 million at fiscal 2024 year-end, an increase of $24.2 million from the prior year-end. Inventory levels decreased by $34.9 million from prior year-end due to adjusted inventory planning based on current demand and business structure.

During fiscal 2024, $55.5 million of cash generated from operating activities funded $11.7 million in share repurchase, $9.7 million in cash dividends, $6.8 million in capital expenditures including investments in the new High Point, Atlanta and Vegas showrooms, $5.1 million for continued implementation of the new ERP system, $2.8 million principal and interest payments on term loans, and $2.4 million for the BOBO acquisition. Since the share repurchase program began in the second quarter of last fiscal year, a total of $25 million has been spent to purchase and retire 1.4 million shares of common stock. The share repurchase program was completed during fiscal 2024. In addition to the cash balance, an aggregate of $28.3 million was available under the existing revolver and $28.5 million in cash surrender value of Company-owned life insurance policies was outstanding at year-end.

Capital Allocation

“Aligning our inventories with current demand contributed to the increase in cash during the year,” commented Paul Huckfeldt, chief financial officer, “and we have disciplines in place to help prevent future inventory spikes. Our capital allocation priorities right now are continuing to invest in organic growth and strategic initiatives and maintain a strong balance sheet until the demand environment improves, while continuing to pay a meaningful dividend, which we’ve paid for 53 consecutive years.”

Outlook

“Home furnishings industry demand is exceptionally soft and about two and a half months into the new fiscal year, year-to-date consolidated orders are down in the mid-single digits as compared to the same prior-year period,” said Hoff.

“Economic indicators are mixed, but somewhat encouraging. Over the last six months, US Consumer confidence has shown no real trend to the upside or downside, despite encouraging signs including the easing of inflation from 2023 highs and likely interest rate cuts later in the year. We’re also encouraged by recent strong existing home sales, growth in building permits and in single-family housing starts and completions, an encouraging jobs report, and the stock market’s strong performance. We are cautiously optimistic for later this year and beyond and are confident we’ve made the right strategic investments in sales channels, people, systems, and products and that we’re positioned to grow as the economy gains momentum,” Hoff said.

“We are looking forward to the Spring High Point Market that opens this week and expect strong attendance as we offer an exciting assortment of new products across divisions.

Throughout this year, we will be celebrating over a century of business offering quality home furnishings with innovative style and function. We attribute the longevity of the Company to our exceptional culture. One of the attributes that defines our culture is our philanthropic DNA. We plan to honor our past with a variety of philanthropic contributions to the communities in which our employees live and work,” said Hoff.

“We believe the investments and improvements we made in the past year will be a springboard to higher profitability, especially once demand improves. Going forward, we intend to use the strength of our balance sheet and variable cost model to weather current economic volatility until consumer confidence improves and demand returns,” Hoff concluded.

Conference Call Details

Hooker Furnishings will present its fiscal 2024 fourth quarter and full year financial results via teleconference and live internet webcast on Thursday morning, April 11th, 2024 at 9:00 AM Eastern Time. A live webcast of the call will be available on the Investor Relations page of the Company’s website at https://investors.hookerfurnishings.com/events and archived for replay. To access the call by phone, participants should go to this link (registration link) and you will be provided with dial in details. To avoid delays, participants are encouraged to dial into the conference call fifteen minutes ahead of the scheduled start time.

Hooker Furnishings Corporation, in its 100th year of business, is a designer, marketer and importer of casegoods (wooden and metal furniture), leather furniture, fabric-upholstered furniture, lighting, accessories, and home décor for the residential, hospitality and contract markets. The Company also domestically manufactures premium residential custom leather and custom fabric-upholstered furniture and outdoor furniture. Major casegoods product categories include home entertainment, home office, accent, dining, and bedroom furniture in the upper-medium price points sold under the Hooker Furniture brand. Hooker’s residential upholstered seating product lines include Bradington-Young, a specialist in upscale motion and stationary leather furniture, HF Custom (formerly Sam Moore), a specialist in fashion forward custom upholstery offering a selection of chairs, sofas, sectionals, recliners and a variety of accent upholstery pieces, Hooker Upholstery, imported upholstered furniture targeted at the upper-medium price-range and Shenandoah Furniture, an upscale upholstered furniture company specializing in private label sectionals, modulars, sofas, chairs, ottomans, benches, beds and dining chairs in the upper-medium price points for lifestyle specialty retailers. The H Contract product line supplies upholstered seating and casegoods to upscale senior living facilities. The Home Meridian division addresses more moderate price points and channels of distribution not currently served by other Hooker Furnishings divisions or brands. Home Meridian’s brands include Pulaski Furniture, casegoods covering the complete design spectrum in a wide range of bedroom, dining room, accent and display cabinets at medium price points, Samuel Lawrence Furniture, value-conscious offerings in bedroom, dining room, home office and youth furnishings, Prime Resources International, value-conscious imported leather upholstered furniture, and Samuel Lawrence Hospitality, a designer and supplier of hotel furnishings. The Sunset West division is a designer and manufacturer of comfortable, stylish and high-quality outdoor furniture. Hooker Furnishings Corporation’s corporate offices and upholstery manufacturing facilities are located in Virginia, North Carolina and California, with showrooms in High Point, N.C., Las Vegas, N.V., Atlanta, G.A. and Ho Chi Minh City, Vietnam. The company operates distribution centers in Virginia, Georgia, and Vietnam. Please visit our websites hookerfurnishings.com, hookerfurniture.com, bradington-young.com, hfcustomfurniture.com, hcontractfurniture.com, homemeridian.com, pulaskifurniture.com, slh-co.com, and sunsetwestusa.com.

Certain statements made in this release, other than those based on historical facts, may be forward-looking statements. Forward-looking statements reflect our reasonable judgment with respect to future events and typically can be identified by the use of forward-looking terminology such as “believes,” “expects,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “would,” “could” or “anticipates,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Those risks and uncertainties include but are not limited to: (1) general economic or business conditions, both domestically and internationally, including the current macro-economic uncertainties and challenges to the retail environment for home furnishings along with instability in the financial and credit markets, in part due to inflation and rising interest rates, including their potential impact on (i) our sales and operating costs and access to financing, (ii) customers, and (iii) suppliers and their ability to obtain financing or generate the cash necessary to conduct their respective businesses; (2) the direct and indirect costs and time spent by our associates associated with the implementation of our Enterprise Resource Planning system (“ERP”), including costs resulting from unanticipated disruptions to our business; (3) the cyclical nature of the furniture industry, which is particularly sensitive to changes in consumer confidence, the amount of consumers’ income available for discretionary purchases, and the availability and terms of consumer credit; (4) changes in consumer preferences, including increased demand for lower-priced furniture; (5) difficulties in forecasting demand for our imported products and raw materials used in our domestic operations; (6) risks associated with our reliance on offshore sourcing and the cost of imported goods, including fluctuation in the prices of purchased finished goods, customs issues, freight costs, including the price and availability of shipping containers, ocean vessels, ocean and domestic trucking, and warehousing costs and the risk that a disruption in our offshore suppliers or the transportation and handling industries, including labor stoppages, strikes, or slowdowns, could adversely affect our ability to timely fill customer orders; (7) the impairment of our long-lived assets, which can result in reduced earnings and net worth; (8) adverse political acts or developments in, or affecting, the international markets from which we import products, including duties or tariffs imposed on those products by foreign governments or the U.S. government; (9) the interruption, inadequacy, security breaches or integration failure of our information systems or information technology infrastructure, related service providers or the internet or other related issues including unauthorized disclosures of confidential information, hacking or other cyber-security threats or inadequate levels of cyber-insurance or risks not covered by cyber- insurance; (10) risks associated with our Georgia warehouse including the inability to realize anticipated cost savings and subleasing excess space on favorable terms; (11) risks associated with domestic manufacturing operations, including fluctuations in capacity utilization and the prices and availability of key raw materials, as well as changes in transportation, warehousing and domestic labor costs, availability of skilled labor, and environmental compliance and remediation costs; (12) risks associated with HMI segment restructuring and cost-savings efforts, including our ability to reduce expenses and return the segment to profitability; (13) the risks related to the Sunset West acquisition including integration costs, maintaining Sunset West’s existing customer relationships, debt service costs, interest rate volatility, the use of operating cash flows to service debt to the detriment of other corporate initiatives or strategic opportunities, the loss of key employees from Sunset West, the disruption of ongoing business or inconsistencies in standards, controls, procedures and policies across the business which could adversely affect our internal control or information systems and the costs of bringing them into compliance and failure to realize benefits anticipated from the Sunset West acquisition; (14) the risks related to the BOBO Intriguing Objects acquisition, including the loss of a key BOBO employee, inconsistencies in standards, controls, procedures and policies across the business which could adversely affect our internal control or information systems and failure to realize benefits anticipated from the BOBO acquisition; (15) changes in U.S. and foreign government regulations and in the political, social and economic climates of the countries from which we source our products; (16) risks associated with product defects, including higher than expected costs associated with product quality and safety, regulatory compliance costs (such as the costs associated with the US Consumer Product Safety Commission’s new mandatory furniture tip-over standard, STURDY) related to the sale of consumer products and costs related to defective or non-compliant products, product liability claims and costs to recall defective products and the adverse effects of negative media coverage; (17) disruptions and damage (including those due to weather) affecting our Virginia or Georgia warehouses, our Virginia, North Carolina or California administrative facilities, our High Point, Las Vegas, and Atlanta showrooms or our representative offices or warehouses in Vietnam and China; (18) the risks specifically related to the concentrations of a material part of our sales and accounts receivable in only a few customers, including the loss of several large customers through business consolidations, failures or other reasons, or the loss of significant sales programs with major customers; (19) our inability to collect amounts owed to us or significant delays in collecting such amounts; (20) achieving and managing growth and change, and the risks associated with new business lines, acquisitions, including the selection of suitable acquisition targets, restructurings, strategic alliances and international operations; (21) capital requirements and costs; (22) risks associated with distribution through third-party retailers, such as non-binding dealership arrangements; (23) the cost and difficulty of marketing and selling our products in foreign markets, including new foreign markets which require material startup costs without the guarantee of future sales; (24) changes in domestic and international monetary policies and fluctuations in foreign currency exchange rates affecting the price of our imported products and raw materials; (25) price competition in the furniture industry; and (26) other risks and uncertainties described under Part I, Item 1A. "Risk Factors" in the Company’s Annual Report on Form 10-K for the fiscal year ended January 28, 2024. Any forward-looking statement that we make speaks only as of the date of that statement, and we undertake no obligation, except as required by law, to update any forward-looking statements whether as a result of new information, future events or otherwise and you should not expect us to do so.

 
Table I
HOOKER FURNISHINGS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
 
  For the
  Thirteen Weeks Ended Fifty-Two Weeks Ended
  January 28,
 January 29, January 28,
 January 29,
   2024   2023   2024   2023 
         
Net sales $96,775  $131,299  $433,226  $583,102 
         
Cost of sales  71,571   101,449   322,705   461,056 
Inventory valuation expense  1,468   29,078   1,829   28,752 
         
Gross profit  23,736   772   108,692   93,294 
         
Selling and administrative expenses  22,472   23,560   92,678   95,815 
Intangible asset amortization  924   878   3,656   3,512 
Trade name impairment charges     13      13 
         
Operating income / (loss)  340   (23,679)  12,358   (6,046)
         
Other income / (expense), net  582   (10)  1,653   416 
Interest expense, net  376   (27)  1,573   519 
         
Income / (Loss) before income taxes  546   (23,662)  12,438   (6,149)
         
Income tax expense / (benefit)  (47)  (5,783)  2,573   (1,837)
         
Net income / (loss) $593  $(17,879) $9,865  $(4,312)
         
Earnings / (Loss) per share        
Basic $0.06  $(1.60) $0.91  $(0.37)
Diluted $0.06  $(1.60) $0.91  $(0.37)
         
Weighted average shares outstanding:        
Basic  10,490   11,166   10,684   11,593 
Diluted  10,675   11,166   10,838   11,593 
         
Cash dividends declared per share $0.23  $0.22  $0.89  $0.82 


Table II
HOOKER FURNISHINGS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS)
(In thousands)
 
  For the
  Thirteen Weeks Ended Fifty-Two Weeks Ended
  January 28, January 29, January 28,
 January 29,
   2024   2023   2024   2023 
         
Net income / (loss) $593  $(17,879) $9,865  $(4,312)
Other comprehensive income:        
Actuarial adjustments   36   1,142   (173)  1,204 
Income tax effect on adjustments  (9)  (273)  41   (288)
Adjustments to net periodic benefit cost  27   869   (132)  916 
         
Total comprehensive income / (loss) $620  $(17,010) $9,733  $(3,396)


Table III
HOOKER FURNISHINGS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
 
As of January 28, January 29,
   2024   2023 
     
Assets    
Current assets    
Cash and cash equivalents $43,159  $19,002 
Trade accounts receivable, net  51,280   62,129 
Inventories  61,815   96,675 
Income tax recoverable  3,014   3,079 
Prepaid expenses and other current assets  5,530   6,418 
Total current assets  164,798   187,303 
Property, plant and equipment, net  29,142   27,010 
Cash surrender value of life insurance policies  28,528   27,576 
Deferred taxes  12,005   14,484 
Operating leases right-of-use assets  50,801   68,949 
Intangible assets, net  28,622   31,779 
Goodwill  15,036   14,952 
Other assets  14,654   9,663 
Total non-current assets  178,788   194,413 
Total assets $343,586  $381,716 
     
Liabilities and Shareholders’ Equity    
Current liabilities    
Current portion of long-term debt $1,393  $1,393 
Trade accounts payable  16,470   16,090 
Accrued salaries, wages and benefits  7,400   9,290 
Customer deposits  5,920   8,511 
Current portion of operating lease liabilities  6,964   7,316 
Other accrued expenses  3,262   7,438 
Total current liabilities  41,409   50,038 
Long term debt  21,481   22,874 
Deferred compensation  7,418   8,178 
Operating lease liabilities  46,414   63,762 
Other long-term liabilities  889   843 
Total long-term liabilities  76,202   95,657 
Total liabilities  117,611   145,695 
     
Shareholders’ equity    
Common stock, no par value, 20,000 shares authorized, 10,672 and 11,197 shares issued and outstanding on each date  49,524   50,770 
Retained earnings  175,717   184,386 
Accumulated other comprehensive income  734   865 
Total shareholders’ equity  225,975   236,021 
Total liabilities and shareholders’ equity $343,586  $381,716 
     


Table IV
HOOKER FURNISHINGS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
  For the
  Fifty-Two Weeks Ended
  January 28, January 29,
   2024   2023 
Operating Activities:    
Net income / (loss) $9,865  $(4,312)
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:    
Inventory valuation expense  1,829   28,752 
Depreciation and amortization  8,956   8,829 
Deferred income tax expense  2,523   (3,160)
Noncash restricted stock and performance awards  1,706   1,244 
Provision for doubtful accounts and sales allowances  (727)  (3,673)
Gain on life insurance policies  (984)  (1,179)
Loss on sales of assets  35   94 
Changes in assets and liabilities:    
Trade accounts receivable  11,577   16,831 
Inventories  34,776   (47,827)
Income tax recoverable  65   1,283 
Prepaid expenses and other assets  (5,111)  (5,711)
Trade accounts payable  190   (15,781)
Accrued salaries, wages, and benefits  (1,890)  2,148 
Customer deposits  (2,590)  (1,911)
Operating lease assets and liabilities  449   (57)
Other accrued expenses  (4,261)  3,254 
Deferred compensation  (937)  (542)
Net cash provided by/(used in) operating activities $55,471  $(21,718)
     
Investing Activities:    
Acquisitions  (2,373)  (25,274)
Purchases of property and equipment  (6,815)  (4,199)
Premiums paid on life insurance policies  (406)  (492)
Proceeds of life insurance policies  1,036    
Net cash used in investing activities  (8,558)  (29,965)
     
Financing Activities:    
Purchase and retirement of common stock  (11,674)  (13,342)
Cash dividends paid  (9,682)  (9,602)
Payments for long-term loans  (1,400)  (700)
Proceeds from long-term loans     25,000 
Proceeds from revolving credit facility     36,190 
Payments for revolving credit facility     (36,190)
Debt issuance cost     (37)
Net cash (used in)/provided by financing activities  (22,756)  1,319 
     
Net increase/(decrease) in cash and cash equivalents  24,157   (50,364)
Cash and cash equivalents – beginning of year  19,002   69,366 
Cash and cash equivalents – end of year $43,159  $19,002 
     
Supplemental disclosure of cash flow information:    
Cash paid for income taxes $23  $101 
Cash paid for interest, net  1,375   642 
     
Non-cash transactions:    
(Decrease)/Increase in lease liabilities arising from changes in right-of-use assets $(10,646) $25,241 
Increase in property and equipment through accrued purchases  190   128 


Table V
HOOKER FURNISHINGS CORPORATION AND SUBSIDIARIES
NET SALES AND OPERATING INCOME/(LOSS) BY SEGMENT
(In thousands)
 
  Thirteen Weeks Ended Fifty-Two Weeks Ended
  January 28, 2024 January 29, 2023  January 28, 2024 January 29, 2023 
   % Net  % Net   % Net  % Net 
Net sales  Sales  Sales   Sales  Sales 
Hooker Branded $37,654 38.9%$51,802 39.4% $156,590 36.2%$205,935 35.3%
Home Meridian  29,015 30.0% 44,617 34.0%  143,538 33.1% 216,338 37.1%
Domestic Upholstery  28,272 29.2% 33,735 25.7%  126,827 29.3% 156,717 26.9%
All Other  1,834 1.9% 1,145 0.9%  6,271 1.4% 4,112 0.7%
Consolidated $96,775 100%$131,299 100% $433,226 100%$583,102 100%
           
Operating income/(loss)          
Hooker Branded $3,546 9.4%$5,608 10.8% $16,844 10.8%$22,030 10.7%
Home Meridian  (997)-3.4% (29,892)-67.0%  (5,530)-3.9% (37,181)-17.2%
Domestic Upholstery  (1,609)-5.7% 583 1.7%  1,131 0.9% 8,871 5.7%
All Other  (600)-32.7% 22 1.9%  (87)-1.4% 234 5.7%
Consolidated $340 0.4%$(23,679)-18.0% $12,358 2.9%$(6,046)-1.0%
           
           

For more information, contact:
Paul A. Huckfeldt, Senior Vice President & Chief Financial Officer, Phone: (276) 666-3949