Hooker Furniture (Nasdaq-GS:HOFT) announced that on June 2, 2020,
its board of directors declared a quarterly cash dividend of
$0.16 per share, payable on June 30, 2020, to shareholders of
record at June 16, 2020.
“We’ve seen steady improvement in orders and
shipments since the end of our recently completed fiscal 2021 first
quarter on May 3, 2020. We expect our low fixed cost business
model, which served us well during the Great Recession, to help us
navigate the current disruption,” said Paul B. Toms, Jr., Chairman
and CEO. “Our cash position remains strong and has continued to
improve since our fiscal year-end in early February through early
June, with about an additional $26 million available under our
revolving credit facility if needed. We’re confident in our future
and are proud of our fifty-plus year history of consistently paying
dividends; however, we have limited visibility into future economic
conditions. The Board will continue to evaluate the appropriateness
of the current dividend rate in light of our performance and
economic conditions in future quarters,” Toms concluded.
Hooker Furniture Corporation, in its 97th year
of business, is a designer, marketer and importer of casegoods
(wooden and metal furniture), leather furniture and
fabric-upholstered furniture for the residential, hospitality and
contract markets. The Company also domestically manufactures
premium residential custom leather and custom fabric-upholstered
furniture. It is ranked among the nation’s largest publicly traded
furniture sources, based on 2018 shipments to U.S. retailers,
according to a 2019 survey by a leading trade publication. 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, Sam Moore Furniture, a specialist in upscale
occasional chairs, settees, sofas and sectional seating with an
emphasis on cover-to-frame customization, 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 Furniture
divisions or brands. Home Meridian’s brands include Accentrics
Home, home furnishings centered around an eclectic mix of unique
pieces and materials that offer a fresh take on home fashion,
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, value-conscious imported
leather upholstered furniture, Samuel Lawrence Hospitality, a
designer and supplier of hotel furnishings and HMidea, a 2019
start-up that provides better-quality, ready-to-assemble furniture
to mass marketers and e-commerce customers. Hooker Furniture
Corporation’s corporate offices and upholstery manufacturing
facilities are located in Virginia and North Carolina, with
showrooms in High Point, N.C. and Ho Chi Minh City, Vietnam. The
company operates eight distribution centers in North Carolina,
Virginia, California and Vietnam. Please visit our websites
hookerfurniture.com, bradington-young.com, sammoore.com,
hcontractfurniture.com, homemeridian.com, pulaskifurniture.com,
accentricshome.com and slh-co.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) The effect and consequences of
the coronavirus (COVID-19) pandemic or future pandemics on a wide
range of matters including U.S. and local economies; our business
operations and continuity; the health and productivity of our
employees; and the impact on our supply chain, the retail
environment and our customer base; (2) 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
or (ii) customers and suppliers and their ability to obtain
financing or generate the cash necessary to conduct their
respective businesses; (3) 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, such as the current
U.S. administration imposing a 25% tariff on certain goods imported
into the United States from China, including almost all furniture
and furniture components manufactured in China, with the potential
for additional or increased tariffs in the future; (4) sourcing
transitions away from China, including the lack of adequate
manufacturing capacity and skilled labor and longer lead times, due
to competition and increased demand for resources in those
countries; (5) risks associated with our reliance on offshore
sourcing and the cost of imported goods, including fluctuation in
the prices of purchased finished goods, ocean freight costs and
warehousing costs and the risk that a disruption in our offshore
suppliers could adversely affect our ability to timely fill
customer orders; (6) 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; (7) disruptions
involving our vendors or the transportation and handling
industries, particularly those affecting imported products from
Vietnam and China, including customs issues, labor stoppages,
strikes or slowdowns and the availability of shipping containers
and cargo ships; (8) difficulties in forecasting demand for our
imported products; (9) risks associated with product defects,
including higher than expected costs associated with product
quality and safety, and regulatory compliance costs related to the
sale of consumer products and costs related to defective or
non-compliant products, including product liability claims and
costs to recall defective products; (10) disruptions and damage
(including due to weather) affecting our Virginia, North Carolina
or California warehouses, our Virginia or North Carolina
administrative facilities or our representative offices or
warehouses in Vietnam and China; (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) the risks
specifically related to the concentrations of a material part of
our sales and accounts receivable in only a few customers; (13) our
inability to collect amounts owed to us or significant delays in
collecting such amounts; (14) 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 or inadequate levels of
cyber-insurance or risks not covered by cyber insurance; (15)
achieving and managing growth and change, and the risks associated
with new business lines, acquisitions, restructurings, strategic
alliances and international operations; (16) higher than expected
employee medical and workers’ compensation costs that may increase
the cost of our high-deductible healthcare and workers compensation
plans; (17) product liability claims; (18) risks related to
our other defined benefit plans; (19) the possible impairment of
our long-lived assets, which can result in reduced earnings and net
worth; (20) capital requirements and costs, including the servicing
of our floating-rate term loans; (21) risks associated with
distribution through third-party retailers, such as non-binding
dealership arrangements; (22) the cost and difficulty of marketing
and selling our products in foreign markets; (23) changes in
domestic and international monetary policies and fluctuations in
foreign currency exchange rates affecting the price of our imported
products and raw materials; (24) 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; (25) price competition in the furniture industry; (26)
competition from non-traditional outlets, such as internet and
catalog retailers; (27) changes in consumer preferences, including
increased demand for lower-quality, lower-priced furniture due to,
among other things, fluctuating consumer confidence, amounts of
discretionary income available for furniture purchases and the
availability of consumer credit; and (28) 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
February 2, 2020. 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.
For more information,
contact:Paul A. Huckfeldt, Senior Vice
President-Finance and CFOHooker Furniture
Corporation, 276.666.3949
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