Furniture Brands International Contributes Stock to Pension Plan
ST. LOUIS, May 21, 2010 (GLOBE NEWSWIRE) -- Furniture Brands International (NYSE:FBN) announced today the company has made a contribution of 2.3 million shares of its common stock to the company's pension plan ("the plan"). The shares were contributed in a private placement transaction and in consideration for the reduction in future funding obligations to the plan. Furniture Brands will file a registration statement for the shares contributed to the plan and has appointed an independent fiduciary, Evercore Trust Company, N.A., to be solely responsible for all investment decisions with respect to the shares. Following the contribution, the company has approximately 50.9 million shares of common stock issued and outstanding.
The company's previous contributions to the plan in 2010 have totaled approximately $5 million. The majority of the 2010 plan contributions are eligible for favorable tax-loss carryback treatment and the company anticipates an additional cash tax refund of approximately $7 million during 2010.
"Proactively addressing our pension funding in 2010 creates tax advantages and preserves Furniture Brands' financial flexibility as the company invests in the future of our business," said Senior Vice President and Chief Financial Officer Steven G. Rolls.
About Furniture Brands
Furniture Brands International (NYSE:FBN) is one of the world's leading designers, manufacturers, sourcers, and retailers of home furnishings. It markets through a wide range of retail channels, from mass merchant stores to single-brand and independent dealers to specialized interior designers. Furniture Brands serves its customers through some of the best known and most respected brands in the furniture industry, including Broyhill, Lane, Thomasville, Drexel Heritage, Henredon, Pearson, Hickory Chair, Laneventure, and Maitland-Smith.
Matters discussed in this document and in our public disclosures, whether written or oral, relating to future events or our future performance, including any discussion, express or implied, of our anticipated growth, operating results, future earnings per share, or plans and objectives, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are often identified by the words "will," "believe," "positioned," "estimate," "project," "target," "continue," "intend," "expect," "future," "anticipates," and similar expressions that are not statements of historical fact. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Our actual results and timing of certain events could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including, but not limited to, those set forth under "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2009, and in our other public filings with the Securities and Exchange Commission. Such factors include, but are not limited to: risks associated with the execution of our strategic plan; changes in economic conditions; loss of market share due to competition; failure to forecast demand or anticipate or respond to changes in consumer tastes and fashion trends; failure to achieve projected mix of product sales; business failures of large customers; distribution realignments; manufacturing realignments and cost savings programs; increased reliance on offshore (import) sourcing of various products; fluctuations in the cost, availability and quality of raw materials; product liability uncertainty; environmental regulations; future acquisitions; impairment of intangible assets; anti-takeover provisions which could result in a decreased valuation of our common stock; loss of funding sources; and our ability to open and operate new retail stores successfully. It is routine for internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that all forward-looking statements and the internal projections and beliefs upon which we base our expectations included in this report or other periodic reports are made only as of the date made and may change. While we may elect to update forward-looking statements at some point in the future, we do not undertake any obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.
CONTACT: Furniture Brands International, Inc.