Selling and administrative expenses for the six months were $57.4 million, compared to $52.7 million in the prior year period, principally due to higher retail selling expenses associated with increased sales and higher store occupancy expense from the 12 new stores. Interest expense increased $799,000 due to higher interest rates and higher outstanding balances, the write-off of unamortized loan fees related to the prior loans and an increase in loan fee amortization following the re-financing of debt during the first quarter. Other income, net, decreased by $480,000, principally due to the gain from settlement of litigation recorded in 2005.
Net loss from continuing operations for the six months was $8.3 million or $0.63 per share, compared to a net loss from continuing operations in the prior year period of $5.5 million or $0.41 per share. The Company recorded $81,000 in earnings, net of taxes, from discontinued real estate operations, as well as a gain of $2.7 million, net of taxes, on the sale of one real estate property, during the first half of 2005, resulting in a net loss for the 2005 period of $2.7 million, or $0.20 per share. There were no results for discontinued operations during the current year period.
Morgan Joseph & Co., the Company's financial advisor, continues to hold discussions with a number of parties who have expressed preliminary interest in providing capital to the Company, and is also evaluating other potential transactionsto 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 71 retail home furnishings stores.
marketing@alchempro.com
