Hooker Furniture Reports 71% Higher Net Income for Fiscal 2013

Hooker Furniture Reports 71% Higher Net Income for Fiscal 2013

MARTINSVILLE, Va., April 11, 2013 (GLOBE NEWSWIRE) -- Hooker Furniture
(Nasdaq:HOFT) today reported consolidated net sales of $218.4 million and net
income of $8.6 million, or $0.80 per share, for its fifty-three week fiscal
year ended February 3, 2013.

For fiscal 2013, annual net income increased 70.6% on slightly lower annual
net sales, which decreased by $4.1 million, or (1.9)%, compared to the prior
year and earnings per share increased to $0.80 for fiscal 2013 compared to
$0.47 for the prior year.

The Company's upholstery segment returned to operating profitability in fiscal
2013 after reporting operating losses since the fiscal 2009 second quarter and
posted 10.4% and 3.6% net sales increases for the 2013 fiscal fourth quarter
and fiscal year, respectively, compared to the same prior-year periods. As a
result of lower discounting in the current year, the Company's casegoods
segment reported a 12% increase in operating income despite a 5% sales decline
compared to the fiscal 2012 year.

For the fiscal 2013 fourth quarter, consolidated net sales increased 9.7% to
$59.6 million as compared to $54.4 million for the fiscal 2012 fourth quarter.
Consolidated net income increased $3.1 million to $3.7 million, or $0.34 per
share, for the fiscal 2013 fourth quarter. In the casegoods segment, higher
revenues were driven by a better in-stock position. Upholstery sales
improvements were driven by higher demand.

Improved consolidated profitability in both 2013 fiscal periods was primarily
driven by higher average selling prices and lower sales discounting for both
segments, and reduced upholstery segment manufacturing costs as a percentage
of net sales.

"After some challenges at the beginning of the year, we finished the second
half with considerable momentum," said Paul B. Toms Jr., chairman and chief
executive officer. "By year end, we had solid performances by all of our
operating units, healthy orders, good inventory availability, increased
efficiencies and a strong product lineup."

"Our ability to increase consolidated operating profits, excluding fiscal 2012
asset impairment charges, more than 50% on a small revenue decrease affirms
the strategic direction and investments we've made over the last several years
as we have right-sized our business, achieved better inventory and vendor
management and refreshed our product line," he said.

Toms added that "over the course of the year, the most significant positive
impact on our consolidated results came from improved sales and operating
income at our domestic upholstery units Bradington-Young and Sam Moore."
Bradington-Young's Hickory, N.C.-based manufacturing operations ended the year
with six consecutive months of operating profit on modest year-over-year sales
increases. Sam Moore finished the year with an over 9% sales increase compared
to the prior year.

Because the Company has adopted a fiscal year that ends on the Sunday closest
to January 31^st of each year, the 2013 fiscal year and the 2013 fiscal fourth
quarter were one week longer than the comparable fiscal 2012 periods. Based on
actual shipping days, consolidated net sales per day decreased 3.4% to
$856,000 per day for the 2013 fiscal year as compared to $886,000 per day for
the 2012 fiscal year. Based on fiscal fourth quarter actual shipping days,
consolidated net sales for the 2013 fiscal fourth quarter increased 1.3% to
$918,000 per day as compared to $906,000 per day for the 2012 fiscal fourth
quarter.

"Directionally, we believe the quarter points to sustainable improvements in
orders, shipments, inventory availability, manufacturing efficiency and retail
business climate," Toms said.

The fiscal 2013 consolidated net sales decrease was primarily due to lower
unit volume, particularly in our casegoods segment, partially offset by higher
average selling prices in both segments. The fiscal 2013 casegoods unit sales
decrease was driven by the result of out-of-stock positions during the first
half of the fiscal 2013 fiscal year and lower levels of promotional
discounting compared to fiscal 2012, which had increased prior-year unit
volume but adversely impacted gross margins.

Upholstery segment net sales for the 2013 fiscal year increased 3.6% compared
to last year, primarily due to increased average selling prices, partially
offset by lower unit volume.

Consolidated net income was negatively impacted in both the fiscal 2012 fourth
quarter and 2012 fiscal year by a $1.8 million pretax ($1.1 million after tax,
or $0.10 per share) intangible asset impairment charge to write down the value
of the Company's Bradington-Young trade name. Improved profitability in the
current year was driven primarily by higher average selling prices and lower
sales discounting for both segments and reduced upholstery segment
manufacturing costs. These improvements were partially offset by modestly
higher costs on some of our imported products.

Additional fiscal 2013 highlights (compared to fiscal 2012):

  *Gross profit increased as a percentage of net sales to 24.1%, from 22%,
    primarily due to higher average selling prices, decreased casegoods and
    upholstery segment discounting and reduced upholstery segment
    manufacturing costs.
  *Selling and administrative expenses decreased in absolute terms by 1.9%,
    or $769,000, to $39.6 million, but remained flat as a percentage of net
    sales at 18.1% in both fiscal periods.
  *Operating income increased both as a percentage of net sales to 5.9%, from
    3.0%, and in absolute terms by $6.3 million, or 93.9%, from $6.7 million
    to $12.9 million. Excluding the effects of intangible asset impairment
    charges recorded in the prior year, operating income increased $4.5
    million, or 52.5%.
  *Due primarily to higher pre-tax income, income tax expense increased $2.5
    million, or 131.4%, to $4.4 million from $1.9 million. The Company's
    effective tax rate increased to 33.6% of pre-tax income from 27.2%, due to
    the smaller impact of favorable permanent differences on the higher
    pre-tax income.
  *Net income increased both as a percentage of net sales to 4.0%, from 2.3%,
    and in absolute terms by $3.6 million, or 70.6%, to $8.6 million, or $0.80
    per share, compared to $5.1 million, or $0.47 per share.

Additional fiscal 2013 fourth quarter highlights (compared to the fiscal 2012
fourth quarter):

  *Gross profit increased as a percentage of net sales to 28.2%, from 23.8%,
    primarily due to higher average selling prices, lower than expected
    inflation on imported casegoods, which resulted in the reversal of
    previously accrued LIFO expense, decreased casegoods and upholstery
    segment discounting and reduced upholstery segment manufacturing costs.
  *Selling and administrative expenses increased in absolute terms by 10.6%,
    or $1.1 million, to $11.5 million, and as a percentage of net sales to
    19.3% from 19.1%.
  *Operating income increased both as a percentage of net sales to 8.9%, from
    1.3%, and in absolute terms by $4.6 million, or 631.4%, from $726,000 to
    $5.3 million. Excluding the effects of intangible asset impairment
    charges recorded in the prior year, operating income increased $2.8
    million, or 109.0%.
  *Due primarily to higher pre-tax income, income tax expense increased $1.4
    million to $1.6 million from $171,000. The Company's effective tax rate
    increased to 29.8% of pre-tax income from 21.4%.
  *Net income increased both as a percentage of net sales to 6.2%, from 1.2%,
    and in absolute terms by $3.1 million to $3.7 million, or $0.34 per share,
    compared to $628,000, or $0.06 per share.

GAAP to Non-GAAP Operating Margin Reconciliation

For the 2013 fiscal year, operating income increased to 5.9% of net sales as
compared to 3.8% of net sales in the comparable prior-year period, excluding
asset impairment charges recorded in the fiscal 2012 fourth quarter. The
following table reconciles operating income as a percentage of net sales
("operating margin") to operating margin excluding asset impairment charges as
a percentage of net sales for each period:

                Fourteen         Thirteen       Fifty-three  Fifty-Two
                Weeks Ended      Weeks Ended    Weeks Ended  Weeks Ended
                February 3, 2013 January 29,    February 3,  January 29, 2012
                                  2012           2013
                         % Net          % Net       % Net          % Net
                $         Sales  $        Sales $      Sales $         Sales
                                                                
Operating
income,
including fiscal $5,311  8.9%   $726   1.3%  $     5.9%  $6,673  3.0%
2012 asset                                       12,940
impairment
charges
Intangible asset
impairment       --      --   1,815   3.3%  --   --  1,815    0.8%
charges
Operating
income,
excluding fiscal $5,311  8.9%   $ 2,541 4.7%  $     5.9%  $8,488  3.8%
2012 asset                                       12,940
impairment
charges

Operating income and margin excluding the impact of 2012 asset impairment
charges are "non-GAAP" financial measures.We provide this information because
we believe it is useful to investors in evaluating our ongoing operations.
These non-GAAP financial measures are intended to provide insight into our
operating profit and margin, and should be evaluated in the context in which
they are presented. These measures are not intended to reflect our overall
financial results. 

Cash, Inventory and Debt Levels

Cash and cash equivalents decreased $14.0 million to $26.3 million as of
February 3, 2013, from $40.4 million on January 29, 2012, due primarily to a
$15.7 million increase in inventories, which is the result of casegoods and
imported upholstery restocking efforts, and a $2.5 increase in accounts
receivable, due to higher sales. These increased balances were partially
offset by a $2.4 increase in accounts payable, due to higher accrued import
purchases at year-end. "The composition of our inventory is much improved. We
are in stock on best sellers, and service and shipments to our customers have
improved across the board," Toms said. "We expected cash to decrease as we
improved our inventory position.However, we have been rebuilding cash over
the last six to eight weeks and expect this trend will continue."

The Company had no long-term debt at February 3, 2013 and had $13.2 million
available on its $15.0 million revolving credit facility, net of $1.8 million
reserved for standby letters of credit.

Business Outlook

"We finished the year with two consecutive quarters of increased consolidated
net sales and order rates compared to the same prior-year periods," Toms said.
"With the improving economy and initial recovery of the housing market, we
believe we're positioned to see continued improvement in orders, sales and
profitability versus the prior year. We're encouraged by the sustained
improvement in housing sales, new home construction, rising housing prices,
reduced housing inventories, historically low mortgage rates and the best
housing affordability in years. All of this bodes well for our industry."

Conference Call Details

Hooker Furniture will present its fiscal 2013 annual and fourth quarter
results via teleconference and live internet web cast on Monday morning, April
15, 2013 at 9:00 AM Eastern Time.The dial-in number for domestic callers is
877-665-2466, and 678-894-3031 is the number for international callers.The
call will be simultaneously web cast and archived for replay on the Company's
web site at www.hookerfurniture.com in the Investor Relations section.

Ranked among the nation's top 10 largest publicly traded furniture sources
based on 2011 shipments to U.S. retailers, Hooker Furniture Corporation is an
89-year old residential wood, metal and upholstered furniture resource.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 companies
include Hickory, N.C.-based Bradington-Young, a specialist in upscale motion
and stationary leather furniture, and Bedford, Va.-based Sam Moore Furniture,
a specialist in upscale occasional chairs, settees,sofas and sectional
seating with an emphasis on cover-to-frame customization.Please visit our
websites at www.hookerfurniture.com, www.bradington-young.com, and
www.sammoore.com.

Certain statements made in this report, other than those based on historical
facts, are forward-looking statements. These 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)
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; (2) disruptions involving our vendors or the transportation and
handling industries, particularly those affecting imported products, including
customs issues, labor stoppages, strikes or slowdowns and the availability of
shipping containers and cargo ships; (3) disruptions affecting our Henry
County, Virginia warehouses and corporate headquarters facilities; (4) price
competition in the furniture industry; (5) changes in domestic and
international monetary policies and fluctuations in foreign currency exchange
rates affecting the price of our imported products and raw materials; (6) 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;
(7) risks associated with the cost of imported goods, including fluctuation in
the prices of purchased finished goods and transportation and warehousing
costs; (8) adverse political acts or developments in, or affecting, the
international markets from which we import products, including duties or
tariffs imposed on those products; (9) 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 and environmental
compliance and remediation costs; (10) our ability to successfully implement
our business plan to increase sales and improve financial performance; (11)
the direct and indirect costs associated with the implementation of our
Enterprise Resource Planning system, including costs resulting from
unanticipated disruptions to our business; (12) achieving and managing growth
and change, and the risks associated with new business lines, acquisitions,
restructurings, strategic alliances and international operations; (13) risks
associated with distribution through third-party retailers, such as
non-binding dealership arrangements; (14) capital requirements and costs; (15)
competition from non-traditional outlets, such as catalog and internet
retailers and home improvement centers; (16) changes in consumer preferences,
including increased demand for lower-quality, lower-priced furniture due to
declines in consumer confidence and/or discretionary income available for
furniture purchases and the availability of consumer credit; and (17) higher
than expected costs associated with product quality and safety, including
regulatory compliance costs related to the sale of consumer products and costs
related to defective or non-compliant products. 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.


Table I
HOOKER FURNITURE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
                                                                   
                    Fourteen    Thirteen       Fifty-three Fifty-two   
                    Weeks Ended Weeks          Weeks Ended Weeks Ended 
                                 Ended
                    February 3, January        February 3, January 29, 
                                 29,
                    2013        2012           2013        2012        
                                                                   
Net sales            $59,641   $54,358      $218,359  $222,505  
                                                                   
Cost of sales        42,842     41,428        165,813    173,642    
                                                                   
Gross profit         16,799     12,930        52,546     48,863     
                                                                   
Selling and
administrative       11,488     10,389        39,606     40,375     
expenses
                                                                   
Asset impairment     --        1,815     (a) --        1,815       (a)
charge
                                                                   
Operating income    5,311      726           12,940     6,673      
                                                                   
Other (expense)      (45)       74            53         272        
income, net
                                                                   
Income before income 5,266      800           12,993     6,945      
taxes
                                                                   
Income tax expense   1,568      172           4,367      1,888      
                                                                   
Net income          $3,698    $628         $8,626    $5,057    
                                                                   
Earnings per share:                                                 
Basic                $0.34     $0.06        $0.80     $0.47     
Diluted              $0.34     $0.06        $0.80     $0.47     
                                                                   
Weighted average                                                    
shares outstanding:
Basic                10,715      10,765         10,745      10,762      
Diluted              10,742      10,786         10,775      10,790      
                                                                   
(a) During the fiscal 2012 fourth quarter, the Company recorded asset
impairment charges of $1.8 million pretax ($1.1 million after tax, or    
$0.10 per share) on its Bradington-Young trade name.
                                                                   


Table II
HOOKER FURNITURE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)

                             Fourteen    Thirteen    Fifty-three Fifty-two
                             Weeks Ended Weeks Ended Weeks Ended Weeks Ended
                             February 3, January 29, February 3, January 29,
                             2013        2012        2013        2012
                                                              
Net Income                    $3,698    $628      $8,626    $5,057
Other comprehensive income                                     
(loss):
Amortization of actuarial     190        (558)      147        (803)
gains
Income tax effect on
amortization of actuarial     (69)       210        (53)       303
gains
Adjustments to net periodic   121        (348)      94         (500)
benefit cost
                                                              
Comprehensive Income          $3,819    $280      $8,720    $4,557



Table III
HOOKER FURNITURE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, including share data)
                                                                 
As of                                                  February 3, January 29,
                                                      2013        2012
Assets                                                            
Current assets                                                    
Cash and cash equivalents                              $26,342   $40,355
Accounts receivable, less allowance for                28,272      25,807
doubtfulaccounts of $1,249 and $1,632 on each date
Inventories                                            49,872      34,136
Prepaid expenses and other current assets              3,648       3,182
Deferred taxes-current                                1,533       1,012
Total current assets                                   109,667    104,492
Property, plant and equipment, net                     22,829      21,669
Intangible assets                                      1,257       1,257
Cash surrender value of life insurance policies        17,360      16,217
Deferred taxes-non current                             4,458       5,050
Other assets                                           252        486
Total assets                                           $155,823  $149,171
                                                                 
Liabilities and Shareholders' Equity                              
Current liabilities                                               
Trade accounts payable                                 $11,620   $9,233
Accrued salaries, wages and benefits                   3,316       3,855
Other accrued expenses                                 2,531       792
Accrued dividends                                      --        1,078
Total current liabilities                              17,467      14,958
Deferred compensation                                  7,311       7,100
Total liabilities                                      24,778     22,058
                                                                 
Shareholders' equity                                              
Common stock, no par value, 20,000 shares authorized,
10,746 and 10,782 shares issued and outstanding on     17,360      17,262
each date
Retained earnings                                     113,483     109,742
Accumulated other comprehensive income                 202        109
Total shareholders' equity                             131,045    127,113
Total liabilities and shareholders' equity             $155,823  $149,171



Table IV
HOOKER FURNITURE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

                                          Fifty-three Weeks Fifty-two Weeks
                                           Ended             Ended
                                          February 3,      January 29,
                                          2013               2012
Cash flows from operating activities                       
Cash received from customers             $215,982         $224,577
Cash paid to suppliers and employees     (216,379)          (190,365)
Income taxes paid, net                   (2,901)            (1,987)
Interest (paid) received, net            (35)               51
Net cash (used in) /provided by          (3,333)            32,276
operating activities
                                                            
Cash flows from investing activities                       
Purchases of property, plant and          (4,061)            (3,805)
equipment
Proceeds received on notes issued for the 37                 35
sale of property
Proceeds from the sale of property and    303               125
equipment
Premiums paid on life insurance policies (902)              (1,144)
Proceeds received on life insurance       --               560
policies
Net cash used in investing activities    (4,623)            (4,229)
                                                            
Cash flows from financing activities                       
Cash dividends paid                      (5,386)            (4,315)
Purchase and retirement of common stock  (671)              --
Net cash used in financing activities    (6,057)            (4,315)
                                                            
Net (decrease) / increase in cash and     (14,013)           23,732
cash equivalents
Cash and cash equivalents at beginning of 40,355             16,623
year
Cash and cash equivalents at end of year $26,342          $40,355
                                                            
Reconciliation of net income to net cash
(used in) / provided byoperating                            
activities:
Net income                               $8,626           $5,057
Depreciation and amortization            2,566              2,566
Non-cash restricted stock awards         465                (38)
Asset impairment charge                  --               1,815
Loss on disposal of property             32                 108
Provision for doubtful accounts          61                 361
Deferred income tax                      22                 (36)
Gain on life insurance policies          (680)              (565)
Changes in assets and liabilities:                         
Accounts receivable                      (2,526)            1,502
Inventories                              (15,736)           23,302
Prepaid expenses and other assets        170                451
Trade accounts payable                   2,387              (2,552)
Accrued salaries, wages and benefits     (539)              429
Accrued income taxes                     1,444              (63)
Other accrued expenses (income)          295                (256)
Deferred compensation                    80                 195
Net cash (used in) /provided by operating $(3,333)         $32,276
activities

CONTACT: Paul B. Toms Jr.
         Chairman and Chief Executive Officer
         Phone: (276) 632-2133, or
         Paul A. Huckfeldt, Vice President, Finance &
         Accounting & Chief Financial Officer
         Phone: (276) 632-3949, or
         Kim D. Shaver
         Vice President, Marketing Communications
         Phone: (336) 880-1230

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