Living, office, and bedroom furniture industry leader, Hooker Furniture Corporation (NASDAQ: HOFT) appeal to delay its financial performance report in the fiscal 2021 first-quarter that ended last May 3, 2020, which is due on June 12, 2020. The company seeks the aid of the Exchange Act that was issued on March 25, 2020, that allows a registrant to delay fillings for 45 days due to the COVID-19 pandemic.
Paul B. Toms, Jr., the Chairman and CEO of Hooker Furniture says that the pandemic substantially impacted the company’s financial performance, including market valuations, discounts, rates, and other inputs necessary to complete the analysis and assessment.
Toms, however, explained on the company’s press release that although intangible assets remained the same with their fiscal 2020 Q4, “ another intangible asset valuation” is the appropriate course of action considering the company’s performance during the pandemic and changing market dynamics.
“We need additional time to complete this analysis,” Tom concluded.
The U.S. Securities and Exchange Commission issued an order under Section 36 of the Securities Exchange Act of 1934 that grants public companies with a grace period of 45 days to submit specific reports under the Exchange Act. The issuance allows Hooker Furniture Corporation until July 27, 2020, to file its performance report.
Consequently, the company instead released its preliminary “unaudited” financial results. The report, however, does not include any impairment charges on its intangible assets that ended on May 3, and are solely based on the “most current information available to the company.”
Hooker Furniture Preliminary Financial Performance for February 3, 2020, to May 3, 2020.
- The company reports a consolidated net sales of $104.6 million with a preliminary net loss of $1.1 million or $0.09 per share.
- Net sales decreased to $30.9 million or 22.8% from last year’s first-quarter $135.5 million.
- Preliminary net earnings also reduced to $3.1 million, compared to the net income of $2.0 million reported a year ago.
- Gross profit is down from $25.5 million to $6.9 million or 18.8% or 18.8% of net sales in the prior-year first quarter to $18.7 million, or 17.8% of net sales in the most recent first quarter.
- Preliminary operating margins decreased to a loss of $1.1 million or -1.1% of net sales.
According to the company, the significant decline in sales, including the operating and net income losses, transpired from the economic shutdown and stay-at-home orders brought by the COVID-19 pandemic. Adding salt to the wound is the temporary shutdown of Hooker’s domestic upholstery plants in Virginia and North Carolina, which contributed to the quarterly loss and operating margin reduction.
