Kids vendor scorecard
By Janice Chamberlain -- Kids Today, 10/1/2004
It wasn't much of a mixed bag of results for the 11 suppliers on the Kids Today annual vendor scorecard. Overall, sales were down 5.3%, operating income plummeted 29.1% and there were no collective profits in 2003 — the aggregate net loss for the companies was $57 million.
Total sales for all the vendors were $6.5 billion, compared with $6.8 billion in 2002, coupled with a net loss of $57 million in 2003 compared with net income of $214.2 million the year before.
Operating profits in 2003 were $504.4 million and $711.2 million in 2002.
Just three companies — Graco, First Years and Stanley Furniture — improved their annual operating profits from 2002 results. Calculating operating profits as sales minus cost of goods sold and selling, and general and administrative expenses, the three companies were up 12.1%, 12.2% and 1.2%, respectively.
In dollars, Graco added $15.9 million, First Years increased operating profits by $1.6 million and Stanley, $307,000.
Hardest hit in dollar operating profits was textiles producers WestPoint Stevens, which saw profits plummet by nearly $76.6 million, or 59.4%, to $52.3 million from $128.9 million the year before.
In terms of percentage declines in operating profits, Martha Stewart Omnimedia took quite a tumble, as operating profits fell 91.7% to $3.3 million. For the media company, cost of goods sold represents production, distribution and editorial costs. Graco led the way in individual sales growth, adding $48.1 million or 9.9% from 2002 results. Not far behind was Stanley Furniture, up 8.8% or $21.2 million. Having the toughest time was WestPoint Stevens, which saw sales drop by $165.2 million.
Graco also blew the field away by posting return-on-equity (net profits divided by shareholder equity) of 51.1% for 2003. Crown Crafts pulled into second place with a score of 17%.
Net income champ among the vendors was Chromcraft Revington, which increased profits by $24.1 million in 2003, ending the year with $8.1 million, compared with a loss of $16 million the year before.
The only company to achieve double-digit growth in return-on-sales (net profits divided by sales) was Graco, which posted ROS of 16.2% for 2003. Next in line was RC2's 7.4% and First Years' 7.2%.
Kids Today's third annual vendor scorecard is based on the financial results of 11 publicly traded companies with fiscal years ending between Nov. 29, 2003, and March 28, 2004.
| 2003 | 2002 | % Change | |
| Sales | $6,460.6 | $6,825.3 | -5.3% |
| Operating income | $504.4 | $711.2 | -29.1% |
| Net income | $(57.0) | $214 |
| Year ended | Net income ($000) 2003 | Percentage change | Return on sales | Return on equity | Net sales ($000) 2003 | Percentage change | Gross margin percentage | Inventory turns | |||
| '02-'03 | '99-03 | 02-'03 | '99-03 | ||||||||
| Furniture Brands International | 12/31/2003 | $94,573 | -20.4% | -15.5% | 4.0% | 9.8% | $2,367,738 | -1.2% | 13.4% | 27.7% | 4.0x |
| WestPoint Stevens | 12/31/2003 | (133,284)1 | —2 | — | -8.1 | — | 1,646,202 | -9.1 | -12.6 | 17.2 | 3.7 |
| Graco | 12/26/2003 | 86,713 | 14.7 | 46.1 | 16.2 | 51.1 | 535,098 | 9.9 | 18.8 | 52.9 | 8.5 |
| Dan River | 1/3/2004 | (153,028)3 | —4 | — | -32.1 | -192.5 | 477,448 | -22.1 | -24.1 | 10.8 | 2.8 |
| Bassett Furniture | 11/29/2003 | ( 470)5 | —5 | — | -0.1 | -0.2 | 316,857 | -2.0 | -19.7 | 25.9 | 5.9 |
| Stanley Furniture | 12/31/2003 | 15,150 | 20.56 | -21.1 | 5.8 | 14.8 | 260,641 | 8.8 | -1.5 | 23.7 | 3.7 |
| Martha Stewart Living Omnimedia | 12/31/2003 | (2,771)7 | —8 | — | -1.1 | -1.2 | 245,848 | -16.7 | 7.0 | 44.5 | 16.9 |
| RC2 | 12/31/2003 | 15,123 | -38.9 | -60.6 | 7.4 | 8.9 | 204,661 | -4.8 | -34.2 | 51.4 | 3.3 |
| Chromcraft Revington | 12/31/2003 | 8,088 | —9 | -38.1 | 4.4 | 15.0 | 184,228 | -14.0 | -28.0 | 21.0 | 4.1 |
| First Years | 12/31/2003 | 9,782 | 23.2 | 7.6 | 7.2 | 15.3 | 135,614 | 0.9 | 4.0 | 37.0 | 4.7 |
| Crown Crafts | 3/28/2004 | 3,12810 | 27.60 | — | 3.6 | 17.0 | 86,227 | -9.0 | -73.0 | 22.7 | 4.5 |
| 1. Includes a $49.6 million pretax restructuring and
impairment charge, a $31.5 million pretax charge for Chapter 11 expense and a
$61.3 million income tax benefit. 2. Includes a $6.6 million pretax restructuring and asset impairment charge and a $7.1 million income tax benefit. 3. Includes a $5.8 million income tax benefit. 4. Includes a $20.7 million extraordinary charge, the cumulative effect of an accounting change. 5. Includes pretax restructuring and asset impairment charges of $3.2 million in 2003 and $1.3 million in 2002 and net income from investments of $5.5 million in 2003 and $2.3 million in 2002. 6. Includes a $3.5 million pretax restructuring charge. 7. Includes an $848,000 net loss from discontinued operations and a $3 million income tax benefit. 8. Includes a $7.7 million pretax restructuring charge, a $2.9 million net loss from discontinued operations and a $3.1 million extraordinary charge, the cumulative effect of an accounting change. 9. Includes a $26.7 million extraordinary charge, the cumulative effect of an accounting change. 10. Includes a $2,000 pretax gain on the disposition of assets and a $25,000 foreign currency translation gain. 11. Includes an $11,000 pretax loss on the disposition of assets, a $1.8 million pretax restructuring charge and a $35,000 foreign currency translation loss. |
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