WinsLoew: 1996 Operating Results FOR IMMEDIATE RELEASE FOR MORE INFORMATION: A. Richard Hurwitz Vice President, Corporate Communications (305) 858-2200 WINSLOEW FURNITURE ANNOUNCES RECORD YEAR OPERATING RESULTS PELHAM, AL - (February 12, 1997) WinsLoew Furniture, Inc. (NASDAQ/NM:WLFI) today announced record operating results for the year ended December 31, 1996. The 1996 results included sales of $144.0 million compared to $147.2 million in 1995. Net income was $8.3 million, or $0.95 per share in 1996, compared to a net loss of $4.0 million, or $0.45 per share. Operating results for 1995 included restructuring and other charges of $7.0 million, or $0.78 per share. WinsLoew's gross margin improved to 32.1% for 1996 compared to 25.4% in 1995. This represented an improvement of $9.5 million, or 25.8%. Each of the Company's product lines showed improvement as the Company benefited from improved production efficiencies and reduced raw material costs. Selling, general and administrative expenses increased due to higher sales commission expenses in casual and contract seating, increased selling/promotional expenses, and increased accounts receivable reserves. Interest expense decreased $0.8 million for the year. The Company reduced its debt during 1996 from $42.0 million at December 31, 1995 to $40.7 million at December 31, 1996. Debt at December 31, 1996 included $13.3 million attributable to the Company's stock repurchase program. The reduction in average debt levels as well as increased profitability allowed the Company to pay lower interest rates to its lenders in 1996 compared to 1995. Net sales in the fourth quarter of 1995 were $31.8 million compared to $35.0 million in the fourth quarter of 1995. Net income in the fourth quarter of 1996 was $2.4 million, or $0.29 per share, compared to $0.8 million, or $0.09 per share in the fourth quarter of 1995. In 1996, WinsLoew's Board of Directors authorized the repurchase of up to 2.9 million shares of the Company's common stock. During 1996, the Company repurchased a total of 1.5 million shares bringing the total number of shares repurchased to 2.1 million at December 1996. Bobby Tesney, WinsLoew's President and Chief Executive Officer, commented, "We are especially pleased to report our 1996 results. The year featured a 4% sales increase in casual products and a 23% increase in contract seating products, along with improved gross margins in both of these core business. During 1996, our announced restructuring efforts focussed on the RTA line, including flatline, spindle, and futon products and accessories. While 1996 net sales were down, gross margins improved as we continued to lower production and overhead expense, and improve efficiencies in these operations. We believe these efforts provide the basis for continued improvements, as well as increased profitability for the Company. WinsLoew Furniture, Inc. designs, manufactures, and distributes aluminum and wrought iron casual furniture; contract seating for the hospitality and office furniture markets; and ready-to-assemble products, including spindle and flatline furniture, futon frames, and related accessories, and ergonomically-designed computer workstations and modular systems. Additional information is available on the Internet World Wide Web at this address: http://www.cfonews.com/wlfi; or investors may dial by modem to (718) 279-3590; or send E-mail to CFO@panix.com, with the subject wlfi. ### WinsLoew Furniture, Inc and Subsidiaries Consolidated Statements of Income (in thcusands except per share amounts) Years Ended December 31, 1996 1995 Net sales $143,979 $147,202 Cost of sales 97,760 110,468 Gross profit 46,219 36,734 Selling, general and administrative expenses 28,501 26,699 Amortization 1,643 2,224 Charges for restructuring -- 7,136 Non-recurring charges -- Operating income 16,075 675 Interest expense 3,083 3,841 Income (loss) before income taxes and extraordinary items 12,992 (3,166) Provision for income taxes 4,708 285 Income (loss) before extraordinary items 8,284 (3,451) Extraordinary items -- (593) Net income (loss) $8,284 ($4,044) Earnings (loss) per share: Income (loss) before extraordinary items $0.95 ($0 38) Extraordinary items -- (0.07) Net income (loss) $0.95 ($0.45) Weighted average number of shares 8,724 9,029 WinsLoew Furniture, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited) (In thousands, except per share amounts) Quarter Ended December 31, 1996 1995 Net sales $31,776 $35,047 Cost of sales 20,875 26,302 Gross profit 10,901 8,745 Selling, general and administrative expenses 6,292 5,969 Amortization 300 616 Operating income (loss) 4,309 2,160 Interest expense 567 782 Income (loss) before income taxes and 3,742 1,378 Provision for (benefit from) income taxes 1,286 542 Net income (loss) $ 2,456 $ 836 Earnings per share: Net income $ 0.29 $ 0.09 Weighted average number of shares 8,383 8,967 WinsLoew Furniture, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share and per share amounts) December 31, 1996 1995 Assets Cash and cash equivalents $897 $396 Accounts receivable, less allowances for doubtful accounts of $2,702 and $1,531 at December 31, 1996 and 1995, respectively 27,203 30,162 Inventories 20,714 19,920 Prepaid expenses and deferred income taxes 3,893 4,163 Total current assets 52,707 54,641 Property, plant and equipment, net 17,725 18,293 Goodwill, net 29,826 30,720 Other intangible assets, net -- 448 Other assets 1,150 1,268 $101,408 $105,370 Liabilities and Stockholders' Equity Current portion of long-term debt $1,957 $1,815 Accounts payable 4,640 2,690 Other accrued liabilities 5,958 6,459 Total current liabilities 12,555 10,964 Long-term debt, net of current portion 38,776 40,191 Deferred income taxes 1,677 987 Total liabilities 53,008 52,142 Commitments and contingencies Stockholders' equity, Preferred stock, par value $.01 per share, 5,000,000 shares authorized, none issued -- -- Common stock; par value $.01 per share, 20,000,000 shares authorized, 7,481,783 and 8,967,112 shares issued and outstanding at December 31, 1996 and 1995, respectively 75 90 Additional paid-in capital 24,543 37,640 Retained earnings 23,782 15,498 Total stockholders' equity 48,400 53,228 $101,408 $105,370 Ends.