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Home and small office ready-to-assemble furniture maker O'Sullivan Industries Holdings enjoyed a 14.1 percent increase in sales in its fiscal fourth quarter, hitting $58.9 million, up from $51.6 million in the year-ago period.
Yet, O'Sullivan reported an operating loss in the its fourth quarter, ended June, coming in at $681,000, compared with operating income of $1.6 million in the same three months last year. The decrease in operating income was generally caused by the lower sales level, a decrease in gross margin due to changes in customer and product mix, and increasing prices for raw materials.
The company recorded a fourth-quarter net loss of $9.4 million, more than double the $4.6 million net loss reported in the same quarter a year earlier.
Earnings before interest, taxes, depreciation and amortization (EBITDA) reached $2.4 million, or 4.1 percent of net sales, compared with $4.5 million, or 8.7 percent of net sales, in the fourth quarter a year ago.
O'Sullivan — which said it is working to alter the long-term direction of the company, and is in the process of strategically realigning its business and focusing on creating top-line growth and improving profitability — recorded a 7 percent drop in fiscal year sales to $268.8 million from $289.2 million.
Operating income during the 12 months took a 65 percent slide to $9.2 million from $26.3 million, while the furniture maker reported a net loss of $27.4 million over the year, compared with net income of $1.6 million the previous year.
The fiscal-year net loss reflects the reduction in operating income and a $3.3 million non-cash write-off of debt issuance costs.
Fiscal-year EBITDA decreased to $19.3 million, down from $39.5 million in the year-ago fiscal 12 months.
This TWICE webinar, hosted by senior editor Alan Wolf, will take a look at what may be the hottest CE products at retail that will be sold during the all-important fourth quarter. Top technologies, market strategies and industry trends will be discussed with industry analysts and executives.