BedTimes magazine June 2010

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QUALITY BEDFRAME LUMBER MANUFACTURER Giving you peace of mind • 100% of our production is bedframe lumber. • You deal closely with the producer. • Our many fiber suppliers allow us to guarantee your lumber supply without a glitch. They also enable us to choose the best price on raw materials. • Our quality-control methods allow us to offer consistent thickness, width and length, along with a standard radius end. • Our mill manager and quality controllers total over 50 years of experience in bedframe lumber manufacturing. • Reliable just-in-time delivery. Bois Le Roux Inc. Tel: 819-877-2092 • Toll Free from USA: 888-877-2098 • E-Mail: blr@blrlumber.com • www.blrlumber.com
IndustryNews L&P’s first-quarter sales tick upward Components supplier Leggett & Platt in Carthage, Mo., reports that it generated $816 million in sales from continuing operations during the first quarter of 2010, a 14% increase over the same period in 2009. First-quarter earnings were $0.29 per share. Unit volumes increased approximately 18%, but were partially offset by reduced prices associated with steel-related deflation, the company said. David Haffner, L&P president and chief executive officer, said earnings were up due to the market’s improvement and sales growth, combined with the company’s 2009 cost-cutting measures. “Our balance sheet and cash flow remain strong,” Haffner said. “We have essentially concluded the first part of the three-part strategic plan we announced in November 2007, having successfully refocused the company by divesting lowperforming businesses. We’ve also made substantial progress on the second step of the plan—to improve margins and returns on the businesses we have kept—despite significant declines in market demand. The third step of our strategy is to grow the company at 4% to 5% per year, on average, over the long term.” In the first quarter, the company repurchased 2 million shares of stock and outstanding shares declined to 147.8 million. Net debt to net capital was 25.6% at the close of the quarter—well below the company’s 30% to 40% target range. Total sales from continuing operations in the residential furnishings division, which includes domestic bedding products, increased $20 million, or 5%, during the first quarter over the same time last year. www.sleepproducts.org/bedtimes Total sales from continuing operations in the specialized products division, which includes the Global Systems Group machinery division, increased $32 million, or 31%. “For the next couple of years, gradual market recovery should provide ample growth and we should benefit significantly from our advantaged competitive positions, improved cost structure and spare production capacity,” Haffner said. “Longer term, we aim for growth to come from development and commercialization of innovative new products and from identification of and expansion into potential new growth platforms.” Select Comfort’s same-store sales rise 29% Minneapolis-based airbed Maker select coMfort reported improved performance during the first quarter of 2010. Net sales for the quarter totaled $158 million, an increase of 13% over the same period a year ago. The increase in sales was driven by a 29% increase in same-store sales, offset by the impact of the closure of 76 stores since the beginning of 2009 and the termination of retail partner relationships at the end of the third-quarter 2009. The net decline in store count and retail partner terminations represented $12.8 million in sales in the first quarter of 2009. Direct marketing and Internet sales increased by a combined 16%, as compared to the year-ago period. Net income for the quarter was $7.8 million, or $0.14 per diluted share, compared to a net loss of $2.7 million, or $0.06 per diluted share, in the first quarter of 2009. Gross profit margins were 62.1% of net sales, in line with company targets and 350 basis points higher than the 58.6% gross profit rate in the first quarter of 2009. Cash flows from operating activities were $29.5 million for first-quarter 2010 compared to $24.1 million, including a $23 million tax refund, in the year-ago period. Capital expenditures totaled $1 million, compared to $1.2 million in 2009. At the end of the quarter, cash and cash equivalents and restricted cash totaled $44 million and the company had no borrowings under its revolving credit agreement. “During the quarter, our solid execution resulted in improved performance, demonstrated by sustained same-store growth and strong operating margins,” said Bill McLaughlin, Select Comfort president and chief executive officer. “We took advantage of an improving consumer environment and positive in-market testing to increase media investments behind our proven value messaging. The result was sales growth across all company-owned channels.” McLaughlin continued, “While still cautious about macrotrends for the balance of the year, we anticipate an improved outlook for 2010 based on our continuing momentum and consequently are increasing our earnings guidance.” BedTimes | June 2010 | 33
Page 1 and 2: BedTimes JUNE 2010 THE BUSINESS JOU
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Page 5 and 6: JUNE 2010 InSide www.sleepproducts.
Page 7 and 8: EDITOR IN CHIEF Julie A. Palm 336-7
Page 9 and 10: FrontMatter Stop strategic planning
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Page 19 and 20: What they’re saying Why managing
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Page 24: ny’s LinkedIn and Facebook pages,
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Page 50 and 51: 48 | BedTimes | June 2010 Calendar
Page 52 and 53: AdvertisersIndex A. Lava & Son Co.
Page 54 and 55: TheLastWord Contact us Have you eve
Page 56: eco fabrics cottons prints jacquard

BedTimes magazine June 2010

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