furniture brands internatial: modeFinance Credit Report

Page 1

Tuesday, 10 September 2013

FURNITURE BRANDS INTERNATIONAL INC

MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Company name

FURNITURE BRANDS INTERNATIONAL INC

Identification number If you want to know more, ASKMORE modeFinance’s credit report.

TM

Almost every day millions of people around the world are wondering the real creditworthiness of the companies with which they are in business. Every day these questions remain unanswered. modeFinance now aims to answer these questions in a simple, complete and immediate way. TM

TM

s-peek

TM

United States of America

ZIP code and city

63105 - ST. LOUIS

Address

1, NORTH BRENTWOOD BOULEVARD +1 314 863 1100 www.furniturebrands.com info@furniturebrands.com

Legal form Account

Consolidated

Incorporation date

16/03/1921

NACE 2 Sector

3109 - Manufacture of other furniture

TM

ASKMORE is the modeFinance product which gives the chance to evaluate the credit risk for every company from all around the world.

ASKMORE

Country

Listed Status

Active

MORE Credit limit

3,100,000 e

Black records

Available on request

plans 3 types of reports:

Plus

Basic TM

ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making. It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis. This report type is ideally suited for decisions on transactions with each level of credit risk. TM

29/12/2012

31/12/2011

31/12/2010

Turnover (th e)

813,465

856,066

867,631

Rating

CCC

CCC

B

17.11%

9.35%

4.44%

100%

100%

100%

Leverage ratio

3.72

1.96

1.08

Financial Leverage

0.69

0.31

0.20

Total asset/Total liabilities

1.10

1.27

1.62

Current Ratio

2.28

2.67

3.03

Quick Ratio

0.86

1.03

1.26

39.00

25.00

29.00

Probability of default Confidence Level Solvency ratios

Liquidity ratios

Cash Cycle Ratio Profitability ratios Return on investement ROI (%)

-7.01

-6.99

-6.62

-31.19

-17.76

-10.14

Asset turnover

1.73

1.80

1.71

Gross Profit/Operating revenue

0.25

0.26

0.26

-4.95

-8.73

-9.26

Return on equity ROE (%)

Interest Coverage ratios EBIT interest coverage ratio

Analysis and trend of financial strength modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM

key askMORETM is a registered mark of modeFinanceTM

MORE Credit Rating

D not available

non return

C

CC

extremly pathological pathological

CCC

B

BB

BBB

A

AA

AAA

high danger

weak

sufficient

adequate

good

very strong

extremely strong


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Sector Analysis Company

Healthy

Balanced

Vulnerable

Risky

Solvency ratios Leverage ratio

3.72

0.62

1.62

2.79

11.45

Financial Leverage

0.69

0.04

0.58

1.46

6.35

Total asset/Total liabilities

1.10

2.58

1.62

1.27

1.05

2.28

2.25

1.58

1.41

0.96

Liquidity ratios Current Ratio Quick Ratio

0.86

1.70

1.09

0.83

0.46

Cash Cycle Ratio

39.00

-17.00

-7.00

2.00

6.00

Return on investement ROI (%)

-7.01

12.60

4.88

1.67

-7.10

Return on equity ROE (%)

-31.19

14.80

7.79

-0.52

-105.30

Asset turnover

1.73

1.42

1.44

1.20

1.39

Gross Profit/Operating revenue

0.25

0.28

0.23

0.19

0.14

-4.95

112.50

4.64

0.76

-3.80

Profitability ratios

Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days) Days Sales Of Inventory (DIO)

83

33

43

52

56

Days Sales Outstanding (DSO)

43

50

55

53

63

Days Payable Outstanding (DPO)

39

26

34

43

41

Cash Conversion Cycle (DIO + DSO - DPO)

87

61

64

73

68

-

127

256

203

27

CCC

A

BB

B

CC

Numer of analyzed companies (Average) Rating

The sector has been chosen according to: international companies in the sector NACE 2 3109 with financial data of year 2012.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Sector Analysis - Graphs

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

AA AAA


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Balance Sheet BALANCE SHEET (th e)

29/12/2012

31/12/2011

31/12/2010

Accounting practice

Local GAAP

Local GAAP

Local GAAP

0.7586

0.77286

0.748

12

12

12

Total assets

469,149

474,918

505,957

Fixed assets

170,847

188,183

186,238

Intangible fixed assets

57,733

59,903

64,708

Tangible fixed assets

78,442

89,499

93,400

Other fixed assets

34,672

38,781

28,130

298,303

286,735

319,719

185,351

176,331

186,769

Debtors

95,386

83,448

85,672

Other current assets

17,566

26,955

47,278

9,004

19,621

38,869

41,570

102,234

194,156

6,569

46,847

45,340

35,001

55,388

148,816

Total liabilities

427,580

372,683

311,801

Non current liabilities

296,849

265,137

206,281

Long term debt

79,653

59,510

57,596

217,196

205,627

148,685

130,730

107,546

105,520

0

0

0

Creditors

86,169

66,159

59,725

Other current liabilities

44,561

41,387

45,795

469,149

474,918

505,957

29/12/2012

31/12/2011

31/12/2010

Exchange rate USD - EUR Number of months

Current assets Stocks

Cash & cash equivalent Shareholders funds Capital Other shareholders funds

Other non-current liabilities Current liabilities Loans

Total shareh. funds & liab. NET DEBT (th e) Short term debts Long term debt Cash & cash equivalent Net debt

0

0

0

79,653

59,510

57,596

9,004

19,621

38,869

70,649

39,889

18,727

29/12/2012

31/12/2011

31/12/2010

Working capital

194,567

193,621

212,716

Net Current Assets

167,572

179,188

214,200

29/12/2012

31/12/2011

31/12/2010

Days Sales Of Inventory (DIO)

83

75

79

Days Sales Outstanding (DSO)

43

36

36

Days Payable Outstanding (DPO)

39

28

25

Cash Conversion Cycle (DIO + DSO - DPO)

87

83

90

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Income Statement INCOME STATEMENT (th e)

29/12/2012

31/12/2011

31/12/2010

Accounting practice

Local GAAP

Local GAAP

Local GAAP

0.7586

0.77286

0.748

12

12

12

Exchange rate USD - EUR Number of months Sales

813,465

856,066

867,631

-5

-1

-

0

0

0

Operating revenue / turnover

813,465

856,066

867,631

Total operating costs

834,798

880,160

889,604

Costs growth (%)

-5

-1

-

Service costs

-

-

-

Material costs

-

-

-

Costs of employees

-

-

-

-5,898

-218

-3,310

Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized

EBITDA Depreciation EBIT Financial P/L Financial revenue Financial expenses

15,435

23,876

18,663

-21,333

-24,094

-21,973

-15,871

-11,885

-13,871

532

618

1,023

16,402

12,503

14,894

4,310

2,761

2,373

-37,204

-35,979

-35,844

-

-

-

Extr. and other revenue

-

-

-

Extr. and other expenses

-

-

-

-

-

-

-1,346

-2,166

-6,653

-35,858

-33,813

-29,191

29/12/2012

31/12/2011

31/12/2010

Costs of Good Sold

613,243

630,032

639,762

Gross Profit

200,222

226,034

227,868

Other Operating Expenses

221,555

250,128

249,842

29/12/2012

31/12/2011

31/12/2010

Interest paid P/L before tax Extr. and other P/L

P/L before tax + Extr. and other P/L Taxation P/L for period

Cash flow Added value

-20,423

-9,937

-10,528

-

-

-

29/12/2012 Number of employees

9,100

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

31/12/2011 8,800

31/12/2010 8,900

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Evolutions and trends

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

AA AAA


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Qualitative information Full overview

The company is engaged in the design, manufacture, and sale of home furnishings in the United States and internationally. It was founded in 1836 and is headquartered in St. Louis, Missouri. The company is one of the world’s largest furniture manufacturers. Its products include dining room and living room furniture, metal and glass tables, home entertainment centers and home office furniture, motion furniture and sleep sofas, stationary upholstery products, as well as decorative accessories and accent pieces. The company markets its products under the Broyhill, Lane, Thomasville, Drexel Heritage, Henredon, Hickory Chair, Pearson, Laneventure, Maitland - Smith, and Creative Interiors names. The company has trade showrooms located in Thomasville and High Point, North Carolina; Atlanta, Georgia; Chicago, Illinois; Las Vegas, Nevada; and Tupelo, Mississippi.

History

Not available.

Primary business line

Engaged in the design, manufacture, and sale of home furnishings in the United States and internationally.

Secondary business line

Not available.

Main activity

Manufacturing.

Secondary activity

Not available.

Main products and services

Dining room and living room furniture, metal and glass tables, home entertainment centers and home office furniture, motion furniture and sleep sofas, stationary upholstery products, decorative accessories, accent pieces.

Size estimate

One of the world’s largest furniture manufacturers.

Strategy, organization and policy

Not available.

Strategic alliances

Not available.

Membership of a network

Not available.

Main brand names

Broyhill; Lane; Thomasville; Drexel Heritage; Henredon; Hickory Chair; Pearson; Laneventure; Maitland - Smith; Creative Interiors.

Main domestic country

United States of America.

Main foreign countries or regions

Not available.

Main production sites

St. Louis.

Main distribution sites

Not available.

Main sales representation sites

Not available.

Main customers

Not available.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Black records Available on request.

Auditor/Advisor/Bank name

type

address

KPMG LLP

Auditor

-

American Stock Transfer & Trust

Transfer Agent

-

Board name

date of birth

nationality

function

Mr Ralph P Scozzafava

-

-

Mr Ira David Kaplan

29/08/1958

United States of America

CHAIRMAN OF THE BOARD, CHIEF EXECUTIVE Officer; Chief Executive Officer - Chief Executive Officer Independent Director

Mrs Ann S Lieff Mr Aubrey B Patterson

1943

Mr George E Ross

-

United States of America -

Independent Director Lead Independent Director Independent Director

Shareholders (the first twenty shareholders ordered by Direct %) Rating:

SAMSON HOLDING LTD Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

KY 12.82 n.v.

434.27

Total Assets (MIL $) Number of Employees Information date

715.92 8000 03/2013

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

BBB

Operating Revenue (MIL $)

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

DIMENSIONAL FUND ADVISORS LP via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

US 5.46

Rating:

BB

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

36.72 2186.66 260 03/2013

OAKTREE CAPITAL MANAGEMENT, L.P. via its funds

Rating:

Country ISO code

Operating Revenue (MIL $)

NACE Rev. 2, Core code Direct % Total % Address : Not available

US 4.59

Total Assets (MIL $) Number of Employees Information date

US 3.40

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

Country ISO code NACE Rev. 2, Core code Direct % Total %

5800 06/2013

Rating:

LEGG MASON INC via its funds

785.1

B 2557.3 7269.7 2975 06/2013

Address : Not available

HOTCHKIS AND WILEY CAPITAL MANAGEMENT LLC via its funds

Rating:

Country ISO code

Operating Revenue (MIL $)

NACE Rev. 2, Core code Direct % Total % Address : Not available

US 3.10

Total Assets (MIL $) Number of Employees Information date

145 03/2013

Rating:

VANGUARD GROUP, INC. THE via its funds Country ISO code NACE Rev. 2, Core code Direct %

US -

Total % Address : Not available

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees

2017.7 1830.07 9500

2.69

Information date

03/2013

Rating:

BB

US 2.52

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

9337 200451 10500 03/2013

BLACKROCK, INC. via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

10.3

PRESCOTT GROUP CAPITAL MANAGEMENT, L.L.C. via its funds

Rating:

Country ISO code NACE Rev. 2, Core code

US -

Operating Revenue (MIL $) Total Assets (MIL $)

Direct % Total % Address : Not available

2.28

Number of Employees Information date

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

0.7 6 03/2013

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

PERRITT CAPITAL MANAGEMENT, INC. via its funds

Rating:

Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

US 2.13

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US

Operating Revenue (MIL $)

Rating:

TAHITHROMOS LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

0.13 2 03/2013

1.64

Total Assets (MIL $) Number of Employees Information date

0 06/2013

COOPER CREEK PARTNERS MANAGEMENT LLC via its funds

Rating:

Country ISO code NACE Rev. 2, Core code Direct % Total %

US 1.34

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

0.07 1 03/2013

Rating:

BB

US

Operating Revenue (MIL $)

Address : Not available

WILLIAM BLAIR & COMPANY LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

-

1.15

Total Assets (MIL $) Number of Employees Information date

Country ISO code NACE Rev. 2, Core code Direct %

n.v. 0.79

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees

Total % Address : Not available

n.v.

Information date

US 0.79

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

Country ISO code NACE Rev. 2, Core code

BM -

Operating Revenue (MIL $) Total Assets (MIL $)

4135.3 17492.4

Direct % Total % Address : Not available

0.64

Number of Employees Information date

6128 03/2013

Rating:

SCOZZAFAVA RALPH P

03/2013

Rating:

STATE OF CALIFORNIA via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

511.4 0 06/2013

Rating:

INVESCO LTD via its funds

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

06/2013

A

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

TRUE BEARING ASSET MANAGEMENT LP via its funds

Rating:

Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

US 0.61

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US

Operating Revenue (MIL $)

Rating:

D. E. SHAW & CO. LP via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

0 03/2013

0.60

Total Assets (MIL $) Number of Employees Information date

0 03/2013

BRIDGEWAY CAPITAL MANAGEMENT INC via its funds

Rating:

Country ISO code NACE Rev. 2, Core code Direct % Total %

US 0.50

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US

Operating Revenue (MIL $)

0 03/2013

Address : Not available

Rating:

Y/CAP MANAGEMENT LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

0.49

Total Assets (MIL $) Number of Employees Information date

0 06/2013

Rating:

FIRST DALLAS HOLDINGS INC via its funds Country ISO code NACE Rev. 2, Core code Direct %

US -

Total % Address : Not available

0.48

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

5.7 40 03/2013

Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:

ACTION TRANSPORT, INC. Country ISO code NACE Rev. 2, Core code

US -

Operating Revenue (MIL $) Total Assets (MIL $)

Direct % Total %

MO n.v.

Number of Employees Information date

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

25.2 200 06/2013

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

BROYHILL FURNITURE INDUSTRIES, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %

US MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

MY MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

CN MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

HK MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

CA MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

Rating:

BROYHILL HOME FURNISHINGS, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %

12/2012

Rating:

FURNITURE BRANDS CANADA ULC Country ISO code NACE Rev. 2, Core code Direct % Total %

12/2012

Rating:

FURNITURE BRANDS ASIA LTD Country ISO code NACE Rev. 2, Core code Direct % Total %

3.8 30 04/2013

Rating:

FURNITURE BRANDS (HANGZHOU) CO LTD Country ISO code NACE Rev. 2, Core code Direct % Total %

12/2012

Rating:

FAYETTE ENTERPRISES LLC Country ISO code NACE Rev. 2, Core code Direct % Total %

12/2012

Rating:

DECORATIVE HARDWARE SOLUTIONS (L) BHD Country ISO code NACE Rev. 2, Core code Direct % Total %

12/2012

Rating:

BROYHILL RETAIL INC Country ISO code NACE Rev. 2, Core code Direct % Total %

126.2 1000 12/2012

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

12/2012


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

FURNITURE BRANDS DE MEXICO S DE RL DE CV Country ISO code NACE Rev. 2, Core code Direct % Total %

MX MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US MO

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

Rating:

FURNITURE BRANDS HOLDINGS INC Country ISO code NACE Rev. 2, Core code Direct % Total %

6 52 12/2012

Rating:

LANE FURNITURE INDUSTRIES, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %

259.6 3300 05/2013

Rating:

HDM RETAIL INC Country ISO code NACE Rev. 2, Core code Direct % Total %

0.31 4 04/2013

Rating:

HDM FURNITURE INDUSTRIES, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %

12/2012

Rating:

FURNITURE BRANDS RETAIL OPS IN Country ISO code NACE Rev. 2, Core code Direct % Total %

12/2012

Rating:

FURNITURE BRANDS RESOURCE COMPANY INC Country ISO code NACE Rev. 2, Core code Direct % Total %

12/2012

Rating:

FURNITURE BRANDS OPERATIONS INC Country ISO code NACE Rev. 2, Core code Direct % Total %

12/2012

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

8.21 0.52 900 12/2012


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

LANE HOME FURNISHINGS RETAIL, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %

US MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

VU MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

MY MO n.v.

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

Rating:

MAITLAND SMITH ASIA HOLDINGS LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

12/2012

Rating:

MAITLAND SMITH EXPORT (L) BHD Country ISO code NACE Rev. 2, Core code Direct % Total %

12/2012

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

12/2012


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

ASKMORE rating guide General vision

A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors. The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements. The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm. The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge. The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating. This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating scale Rating class

Rating macro class

The company’s capacity to meet its financial commitments is extremely strong.

AAA AA

Assessment

Healthy

The company has very strong creditworthiness. The company has a high solvency.

A

Capital structure and economic equilibrium are considered adequate.

BBB Balanced BB

The companyï¿ 21 s performances are adequate considering the sector and the country in which it is operating.

B

The company presents vulnerable signals with regards to its fundamentals. Vulnerable

CCC

The company shows signals of high vulnerability.

CC C D

The company has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals.

Risky

The company shows considerable pathological situations. The company has not any longer the capacity to meet its financial commitments.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Fundamental Credit Rating Ratios Analysis area

Ratio

Assessment This measures the level of total liabilities of the company in comparison

Leverage ratio

with equity.

Solvency ratios

Financial ratios

Assets to debt

This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.

Fixed Assets coverage ratio

This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.

Current ratio

This measures whether a company has sufficient short-term assets to cover its short-term liabilities.

Liquidity ratios This compares current liabilities only to those assets that can be readily

Quick ratio

turned into cash.

Return on Investement(ROI)

This measures the profitability of company investments without regard to the way the investment is financed.

Return on Equity(ROE)

This measures the profitability of the equity.

Asset turnover

This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.

Profit margin

This indicates the profitability of sales.

Interest Paid coverage

This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.

Profitability and economic ratios

Interest coverage ratio

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit

MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:

• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).

The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.

Probability of default e Confidence Level

In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default. As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default. The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:

Confidence =

P Available Information P Total Information

The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company. For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


FURNITURE BRANDS INTERNATIONAL INC

Tuesday, 10 September 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Notes and disclaimer NOTES

modeFinance has based the present analysis on the company available financial statements, coming from one or more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s database etc.

DISCLAIMER

All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Contacts

Info web

modeFinance MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com

Phone

+39 040 3755337

Company Products Where

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


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