The Rowe Companies, a leading furniture manufacturer and home furnishings retailer reported operating results for its first fiscal quarter ended February 26, 2006.
Net shipments for the quarter increased 2.3 percent to $67.0 million, compared to $65.5 million for the comparable prior year period. Gross profit improved to 34.7 percent of net shipments, compared to 30.9 percent of net shipments for the first quarter of 2005, as price increases announced in the late fall took effect during the quarter, manufacturing efficiencies improved somewhat, and higher margin retail shipments grew faster than manufacturing segment shipments.
Net loss from continuing operations for the quarter was $(3.4) million or $(0.25) per share, compared to a net loss in the prior year quarter of $(2.9) million or $(0.22) per share. Net loss for the quarter was $(3.4) million or $(0.25) per share, compared to a net loss of $(149,000) or $(0.01) per share in the same period of the prior year, as the Company recognized a $2.7 million gain, net of taxes, in 2005's first quarter from the sale of a real estate investment property.
Morgan Joseph & Co., the Company's financial advisor, is in discussions with a number of parties who have expressed preliminary interest in providing capital to the Company, and is also evaluating other potential transactions to raise funds for the Company.
The Rowe Companies operates two subsidiaries in the home furnishings industry: Rowe Furniture, Inc., a major manufacturer of quality upholstered furniture serving the middle and upper middle market throughout the U.S.; and Storehouse, Inc., a multi-channel, lifestyle home furnishings business including 70 retail home furnishings stores.
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