View:
Download DOC
Download PDF
Download XLS
Form 8-K Filing

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) September 5, 2012 

Hooker Furniture Corporation
(Exact name of registrant as specified in its charter)


Virginia
000-25349
54-0251350
(State or other jurisdiction
of incorporation) 		(Commission File Number) (IRS Employer Identification No.)



440 East Commonwealth Boulevard, Martinsville, VA
24112
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code:   (276) 632-0459



________________________________________________________________________________
(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))

Item 2.02. Results of Operations and Financial Condition.

On September 5, 2012 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.

    Exhibit 99.1.       Press release dated September 5, 2012

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 Furniture Corporation
(Registrant)
September 5, 2012
(Date)		   /s/   PAUL A. HUCKFELDT
Paul A. Huckfeldt
Vice-President - Finance and Accounting
Chief Financial Officer

  Exhibit Index
  99.1 Press release dated September 5, 2012






Hooker Furniture Reports Higher 2013 First Half Income on Lower Sales

EXHIBIT 99.1

Hooker Furniture Reports Higher 2013 First Half Income on Lower Sales

MARTINSVILLE, Va., Sept. 5, 2012 (GLOBE NEWSWIRE) -- Hooker Furniture (Nasdaq:HOFT) today reported net sales of $50.2 million and net income of $1.5 million, or $0.14 per share, for its fiscal 2013 second quarter, which ended July 29, 2012. For the fiscal 2013 first half, net sales were $101.9 million and net income was $2.5 million, or $0.23 per share.

For the fiscal 2013 second quarter, net sales decreased 9.7%, or $5.4 million, and net income decreased 10.4%, or $172,000, to $0.14 per share compared to $0.15 per share in the comparable period a year ago.

For the fiscal 2013 first half, sales decreased 10.6%, or $12.1 million, and net income increased 15.0%, or $325,000, compared to the prior-year period. Earnings per share for the fiscal 2013 first half increased to $0.23 per share compared to $0.20 per share in the prior year.

Performance in both fiscal 2013 periods was primarily driven by lower net sales, reduced sales discounting, lower freight costs on imported products and lower domestic manufacturing costs.

"We're disappointed in our sales performance so far this year, but pleased that we have been able to achieve comparable to higher profitability on lower sales for both casegoods and upholstery," said Paul B. Toms Jr., chairman and chief executive officer. "We've maintained profitability by improving our domestic upholstery manufacturing operations and by managing costs. In addition, we believe we are now positioned to stabilize and grow sales again. We are almost re-stocked on best-selling products, and we believe we have both the heavy discounting and higher freight rates behind us. We're also preparing to ship several new, well-received collections that will be debuting on retail floors during the historically strong fall selling season," he added.

Fiscal 2013 second quarter highlights (compared to fiscal 2012 second quarter):

  • decreased in absolute terms by 7.5%, or $726,000, to $8.9 million, primarily due to decreases in sales-related expenses; and
  • increased as a percentage of net sales from 17.4% to 17.8%, due to lower net sales.

Fiscal 2013 first half highlights (compared to fiscal 2013 first half):

  • decreased in absolute terms by 8.1%, or $1.6 million, to $18.3 million, primarily due to decreases in sales-related expenses; and
  • increased as a percentage of net sales to 18.0%, from 17.5%, due to lower net sales.

Cash, Inventory and Debt

Cash and cash equivalents increased $3.0 million to $43.3 million as of July 29, 2012, from $40.4 million on January 29, 2012, due principally to:

"Our cash position remains strong, although we expect a modest decrease in cash during the second half of fiscal 2013 as we continue to replenish inventories and repurchase shares under last quarter's board authorization," said Toms. "We are in an improving inventory position, and the composition of our inventories with best-selling and newer products is much better compared to the prior year period."

The Company had no long-term debt at July 29, 2012 and had $13.2 million available on its $15.0 million revolving credit facility, net of $1.8 million reserved for standby letters of credit.

Business Outlook

"There's been no significant upturn in retail business yet, but we are hopeful that demand will improve as we enter what is typically the strongest selling season of the year. While housing activity has recently improved by some measures, both housing activity and consumer confidence are still below historically healthy levels," Toms said.

"Demand for casegoods remains subdued with incoming orders decreasing in the high single digit range during the second quarter compared to the same period last year, but we are encouraged that incoming order rates for upholstery were up 12% year-over-year in the second quarter," he said.

"Our consolidated backlog was up about $5 million at the end of the fiscal 2013 second quarter compared to the same date last year, and we expect to derive benefits during the third quarter from shipping bestsellers that we have re-stocked in inventory, as well as successfully launched new April furniture market introductions that will hit retail floors in September and October," Toms said.

"We are closely monitoring the possibility of a strike by the International Longshoremen's Association (ILA) on October 1, 2012, which is likely if an agreement is not reached between the ILA and the United States Maritime Alliance before September 30, 2012.   We increased ordering five months ago in order to mitigate the potential impact of a strike and expect to receive about twice the normal amount of inventory for the six weeks ahead of October 1st. We are hopeful that the two parties can reach an agreement before the deadline," he said.

"On the internal operations side of our business, our Enterprise Resource Planning (ERP) system became operational this week for our casegoods segment after nearly two years of design, planning, conversion and training efforts by our associates and implementation partner. At this point, it appears that our operations are stable and everything is proceeding according to expectations," Toms concluded.  

Dividends

At its September 5, 2012 meeting, our board of directors declared a quarterly cash dividend of $0.10 per share, payable on November 30, 2012 to shareholders of record at November 16, 2012.

Conference Call Details

Hooker Furniture will present its fiscal 2013 second quarter results via teleconference and live internet web cast on Thursday morning, September 6, 2012 at 9:00 AM Eastern Time. The dial-in number for domestic callers is 877-665-2466 and the number for international callers is 678-894-3031. The call will be simultaneously web cast and archived for replay on the Company's web site at www.hookerfurniture.com in the Investor Relations section.

Ranked among the nation's top 10 largest publicly traded furniture sources based on 2011 shipments to U.S. retailers, Hooker Furniture Corporation is an 88-year old residential wood, metal and upholstered furniture resource. 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, and youth bedroom furniture sold under the Opus Designs by Hooker Furniture brand. Hooker's residential upholstered seating companies include Bradington-Young, a specialist in upscale motion and stationary leather furniture, and Sam Moore Furniture, a specialist in upscale fabric occasional chairs with an emphasis on cover-to-frame customization. Please visit our websites at www.hookerfurniture.com, www.bradington-young.com, www.sammoore.com and www.opusdesigns.com.

The Hooker Furniture Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4305

Certain statements made in this report, other than those based on historical facts, are forward-looking statements. These 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, and instability in the financial and credit markets, including their potential impact on our (i) sales and operating costs and access to financing, (ii) customers and suppliers and their ability to obtain financing or generate the cash necessary to conduct their respective businesses; (2) risks associated with domestic manufacturing operations, including fluctuations in capacity utilization and the prices and availability of key raw materials as well as transportation, warehousing and domestic labor costs and environmental compliance and remediation costs; (3) disruptions involving our vendors or the transportation and handling industries, particularly those affecting imported products, including customs issues, labor stoppages, strikes or slowdowns and the availability of shipping containers and cargo ships; (4) our ability to successfully implement our business plan to increase sales and improve financial performance, including possible adverse effects on our results due to material restructuring or asset impairment charges if we are unsuccessful; (5) volatility in the increased costs of imported goods, including fluctuations and increases in the prices of purchased finished goods and transportation and warehousing costs; (6) higher than expected costs associated with product quality and safety, including costs related to defective or non-compliant products as well as regulatory compliance costs related to the sale of consumer products; (7) the direct and indirect costs associated with the implementation of our Enterprise Resource Planning system, including costs resulting from unanticipated disruptions to our business; (8) price competition in the furniture industry; (9) changes in domestic and international monetary policies and fluctuations in foreign currency exchange rates affecting the price of our imported products and raw materials; (10) the cyclical nature of the furniture industry, which is particularly sensitive to changes in the housing markets, consumer confidence, the amount of consumers' income available for discretionary purchases, and the availability and terms of consumer credit; (11) supply, transportation and distribution disruptions, particularly those affecting imported products, including the availability of shipping containers and cargo ships; (12) achieving and managing growth and change, and the risks associated with international operations, acquisitions, restructurings, and strategic alliances; (13) adverse political acts or developments in, or affecting, the international markets from which we import products, including duties or tariffs imposed on those products; (14) risks associated with distribution through third-party retailers, such as non-binding dealership arrangements; (15) capital requirements and costs; and (16) competition from non-traditional outlets, such as catalogs and internet retailers and home improvement centers; changes in consumer preferences, including increased demand for lower-quality, lower-priced furniture due to declines in consumer confidence and/or discretionary income available for furniture purchases and the availability of consumer credit. 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.

Table I
HOOKER FURNITURE CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
         
  Thirteen Weeks Ended Twenty-Six Weeks Ended
  July 29,
2012		 July 31,
2011		 July 29,
2012		 July 31,
2011
         
Net sales  $ 50,185  $ 55,574  $ 101,915  $ 113,967
         
Cost of sales  38,920  43,411  79,728  90,771
         
Gross profit  11,265  12,163  22,187  23,196
         
Selling and administrative expenses  8,943  9,669  18,337  19,955
         
Operating income  2,322  2,494  3,850  3,241
         
Other income, net  20  27  64  81
         
Income before income taxes  2,342  2,521  3,914  3,322
         
Income tax expense  868  875  1,420  1,153
         
Net income  $ 1,474  $ 1,646  $ 2,494  $ 2,169
         
Earnings per share:        
Basic  $ 0.14  $ 0.15  $ 0.23  $ 0.20
Diluted  $ 0.14  $ 0.15  $ 0.23  $ 0.20
         
Weighted average shares outstanding:        
Basic 10,770 10,761 10,771 10,761
Diluted 10,789 10,784 10,800 10,785
 
 
Table II
HOOKER FURNITURE CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
     
  Thirteen Weeks Ended Twenty-Six Weeks Ended
  July 29,
2012		 July 31,
2011		 July 29,
2012		 July 31,
2011
         
Net Income  $ 1,474  $ 1,646  $ 2,494  $ 2,169
Other comprehensive income:        
Amortization of actuarial gains  (14) (82)  (29)  (163)
Income tax effect on amortization of actuarial gains  5  31  11  61
Adjustments to net periodic benefit cost  (9)  (51)  (18)  (102)
         
Comprehensive Income  $ 1,465  $ 1,595  $ 2,476  $ 2,067
 
 
Table III
HOOKER FURNITURE CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, including share data)
     
  July 29,
2012		 January 29,
2012
Assets    
Current assets    
Cash and cash equivalents  $ 43,325  $ 40,355
Accounts receivable, less allowance for doubtful accounts of $1,467 and $1,632, respectively 23,711  25,807
Inventories 35,820  34,136
Prepaid expenses and other current assets 3,749  4,194
Total current assets  106,605  104,492
Property, plant and equipment, net 22,570  21,669
Intangible assets 1,257  1,257
Cash surrender value of life insurance policies 17,185  16,217
Other assets  5,088  5,536
Total assets  $ 152,705  $ 149,171
     
Liabilities and Shareholders' Equity    
Current liabilities    
Trade accounts payable  $ 12,660  $ 9,233
Accrued salaries, wages and benefits 2,321  3,855
Other accrued expenses 2,090  792
Accrued dividends  1,078  1,078
Total current liabilities  18,149  14,958
Deferred compensation 7,299  7,100
Total liabilities  25,448  22,058
     
Shareholders' equity    
Common stock, no par value, 20,000 shares authorized, 10,781 and 10,782 shares issued and outstanding on each date 17,313  17,262
Retained earnings 109,853  109,742
Accumulated other comprehensive income  91  109
Total shareholders' equity  127,257  127,113
Total liabilities and shareholders' equity  $ 152,705  $ 149,171
 
 
 Table IV 
 HOOKER FURNITURE CORPORATION AND SUBSIDIARIES 
 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
 (In thousands) 
     
   Twenty-Six Weeks Ended 
  July 29,
2012		 July 31,
2011
 Cash flows from operating activities     
 Cash received from customers   $ 104,093  $ 115,290
 Cash paid to suppliers and employees  (95,713) (96,924)
 Income taxes received/(paid), net  13 (115)
 Interest (paid)/received, net  (20) 20
 Net cash provided by operating activities  8,373 18,271
     
 Cash flows from investing activities     
 Purchase of property, plant and equipment  (2,935) (1,871)
 Proceeds received on notes issued for the sale of property  18  17
 Proceeds from the sale of property and equipment  598  3
 Premiums paid on life insurance policies  (783) (1,020)
 Proceeds received on life insurance policies   --  560
 Net cash used in investing activities  (3,102) (2,311)
     
 Cash flows from financing activities     
 Cash dividends paid  (2,159) (2,156)
 Purchase and retirement of common stock  (142)  -- 
 Net cash used in financing activities  (2,301) (2,156)
     
 Net increase in cash and cash equivalents  2,970 13,804
 Cash and cash equivalents at beginning of period  40,355 16,623
 Cash and cash equivalents at end of period   $ 43,325  $ 30,427
     
     
 Reconciliation of net income to net cash provided by operating activities:   
 Net income   $ 2,494  $ 2,169
 Depreciation and amortization  1,475 1,255
 Non-cash restricted stock awards and performance grants  160 (101)
 Provision for doubtful accounts  (13) 705
 Deferred income taxes  387 (346)
 (Gain) on disposal of property   (39)  (3)
 (Gain) on insurance policies   (460)  (388)
 Changes in assets and liabilities:     
 Accounts receivable  2,109 551
 Inventories  (1,684) 15,330
 Prepaid expenses and other current assets  774 667
 Trade accounts payable  3,427 (2,399)
 Accrued salaries, wages and benefits  (1,534) (448)
 Accrued income taxes  1,046 1,384
 Other accrued expenses  170 (373)
 Deferred compensation  61 268
 Net cash provided by operating activities   $ 8,373  $ 18,271 
CONTACT: Paul B. Toms Jr.
         Chairman and Chief Executive Officer
         Phone: (276) 632-2133, or
         Paul Huckfeldt, Vice President, Chief Financial Officer
         Phone: (276) 632-2133, or
         Kim D. Shaver
         Vice President, Marketing Communications
         Phone: (336) 880-1230