Chromcraft Revington, Inc. Reports 2007 Results and Restructuring Activities

WEST LAFAYETTE, Ind.--(Business Wire)--
Chromcraft Revington, Inc. (AMEX:CRC) today reported its financial
results for the fourth quarter and year ended December 31, 2007, as
well as additional restructuring activities.

Operating Results

Sales for the three months ended December 31, 2007 were $28.3M
compared to $38.9M for the prior year period, a decrease of 27.1%. For
the year ended December 31, 2007, sales were $123.4M representing a
23.1% decrease from sales of $160.5M in 2006.

Shipments of residential furniture in 2007 were lower primarily
due to competitive pressures from imported furniture and the impact of
restructuring activities at the Company. Sales were negatively
impacted by the discontinuation of certain under-performing or slow
moving domestic products before new outsourced replacements were
available and by the realignment of the Company's sales force that
resulted in customer relationship disruptions. Residential sales were
also impacted by a slowdown in consumer spending at furniture
retailers which are the Company's primary customers.

Commercial furniture sales grew in 2007 as compared to the prior
year due to higher shipments of office seating products.

The net loss for the fourth quarter was $8.3M or $1.84 loss per
share, compared to a net loss of $.7M or $.17 loss per share, for the
prior year period. For the year ended December 31, 2007, the Company
reported a net loss of $14.9M or $3.30 loss per share, compared to a
net loss of $3.4M or $.77 loss per share, for the prior year. The
Company recorded a tax valuation allowance of $5.2M or $1.14 loss per
share, against the entire net deferred tax asset balances in the
fourth quarter of 2007. The valuation allowance was established after
consideration of relevant factors, including recent operating results,
the likelihood of the utilization of net operating loss tax
carryforwards and the ability to generate future taxable income.

Operating results included a number of special items largely
associated with the transition of the Company's business model and
other organizational changes. For 2007, the Company recorded non-cash
inventory write-downs of $5.4M pre-tax compared to $3.9M pre-tax in
2006 to reflect the anticipated net realizable value of inventory upon
disposition. In addition, the Company recorded non-cash asset
impairment charges of $1.2M pre-tax in 2007 as compared to $3.4M
pre-tax in 2006 to reduce the carrying value of long-lived assets to
expected disposition value. The Company incurred higher costs in 2007,
including product development, marketing, selling, professional fees
and severance. In addition, the Company reported an increase of $1.2M
in bad debt expense as compared to 2006 primarily due to the weak
retail environment and the bankruptcy of a significant customer.

Ben Anderson-Ray, the Company's Chairman and CEO, commenting on
the results stated, "Over the course of the last several quarters we
have been progressively transitioning the Company's operating and
organizational model. While the financial results do not reflect the
organizational progress made in the transformation of the Company,
they do reflect the costs and financial impacts of the changes
underway in addition to the effects of the condition of our industry.
In 2007 we made significant organizational progress in the overall
transition toward a unified organization and greater use of global
sourcing, shifting our U.S. based operations towards built-to-order
customization and distribution logistics. Some of the major changes to
date include integration of five sales organizations into one,
consolidation of showrooms, integration of marketing and product
development activities, restructuring the organization from divisional
units into a unified functional structure, establishing an Asian based
sourcing and quality control operation, as well as initiating the
consolidation of information systems."

Mr. Anderson-Ray further commented, "Most importantly, we have
launched the largest number of new products in the Company's history,
all based on consumer research and the Company's new operating model.
While many of these products are just beginning to reach retail
floors, we believe that the product pipeline will progressively shift
our mix consistent with the new model."

Additional Restructuring Activities

The Company also announced today that, on March 25, 2008, its
board of directors approved the next step in the transition of its
U.S. based operations toward greater use of the global supply chain.
This step involves progressively shifting manufacturing of products
from its Delphi, Indiana plant to suppliers primarily in Asia. The
progressive outsourcing of the remaining U.S. based product lines will
result in a reduction in its workforce and the decommissioning of
related equipment at this facility.

Manufacturing activities at the Delphi facility will conclude on
May 30, 2008. The Company anticipates that it will sell the
manufacturing equipment used at this site and convert the plant to a
warehouse and distribution center. The reduction in force is expected
to impact approximately 150 Associates at the Delphi location.
Associates at other locations are not impacted.

The purposes of this restructuring are to improve the utilization
of the global supply chain, enhance competitiveness, improve operating
margins, reduce fixed costs, and redeploy assets. This action is
consistent with the Company's previously reported transformation of
its business model, which includes reduction of its reliance on U.S.
manufacturing by shifting its business toward use of the global supply
chain and progressively outsourcing existing furniture lines.

Commenting on the decision, Ben Anderson-Ray stated, "Our recent
shipments from Delphi are now nearly 50% imported products. The
decision to progressively shift the balance of the products to global
suppliers is the logical next step in achieving our stated strategy
and enhances our competitiveness, as well as our gross margin."

The Company expects to incur total restructuring and related asset
impairment charges of approximately $1.5M to $2.0M pre-tax to
write-down inventories, as well as machinery and equipment used in the
manufacturing process, to convert the plant into a distribution
facility and to record termination benefits for affected employees.
Most of these charges are expected to be recorded in the first half of
2008. A portion of these charges to transition the plant to a
warehouse and distribution facility and for one-time termination
benefits will result in cash expenditures ranging from approximately
$.6M to $.8M. These expenditures do not include cash proceeds from the
sale of the machinery and equipment which are expected to be between
$.5M and $.7M. Certain general and administrative costs associated
with the wind down of the Delphi manufacturing operations will be
recorded as incurred.

The restructuring charges associated with the non-cash asset
impairment of the machinery and equipment are expected to range from
approximately $.3M to $.4M pre-tax. In addition, certain raw and
in-process inventories will be written down to net realizable value,
resulting in a non-cash inventory charge of approximately $.6M to $.8M
pre-tax. Termination benefits for employees are expected to range
between approximately $.4M to $.5M pre-tax. Other costs to transition
the plant to a warehouse and distribution center are expected to be
approximately $.2M to $.3M pre-tax.

Within the past 18 months, the Company has closed and sold its
plants in Sumter, South Carolina and Warrenton, North Carolina as well
as its warehouse and distribution center in Knoxville, Tennessee. The
Company also relocated its upholstery operations into its existing
facilities in Lincolnton, North Carolina and sold its upholstery
plant.

After the Delphi restructuring, the Company will employ
approximately 550 Associates and will conduct manufacturing and
distribution activities at its Senatobia, Mississippi and Lincolnton,
North Carolina locations, as well as distribution activities from its
Delphi, Indiana site. The Company will continue to maintain its
corporate headquarters in West Lafayette, Indiana and its showroom
space in High Point, North Carolina, Chicago, Illinois and Las Vegas,
Nevada.

Ben Anderson-Ray stated, "Conditions in the furniture industry
were challenging in 2007 and continue to be so today. Our Company felt
additional impact as we continued the transformation of our business
model. However, we remain committed to transitioning our business to a
unified functional organization that is consumer and customer driven
and is focused on built-to-order customization and distribution
activities. The transition of the Delphi location is one more
important step to improving the Company's competitiveness and
enhancing its adaptability to the dynamics of the market. We believe
this transition will position our company for the future when economic
conditions improve."

As part of its transformation, the Company has incurred asset
impairment charges, inventory write-downs, plant shut down costs,
employee severance costs and other restructuring related costs and
reported operating losses in 2007 and 2006. Additional transition
costs, reduced revenue, increased operating expenses, restructuring
charges and asset impairments will likely occur as the Company
continues its transformation.

Chromcraft Revington businesses design, manufacture, source and
market residential as well as commercial furniture throughout the
United States. The Company wholesales its residential furniture
products under the CR-Home banner with "Chromcraft,"
"Peters-Revington," "Silver," "Cochrane" and "Sumter" as brand names.
It sells commercial furniture under the "Chromcraft" brand name.

This release contains forward-looking statements that are based on
current expectations and assumptions. These forward-looking statements
can be generally identified as such because they include future tense
or dates, or are not historical or current facts, or include words
such as "anticipate," "believe," "expect," "intend," "may," "likely,"
or words of similar import. Forward-looking statements are not
guarantees of performance or outcomes and are subject to certain risks
and uncertainties that could cause actual results or outcomes to
differ materially from those reported, expected or anticipated as of
the date of this release.

Among such risks and uncertainties that could cause actual results
or outcomes to differ materially from those reported, expected or
anticipated are general economic conditions, including the current
recessionary trends in the U.S. economy; import and domestic
competition in the furniture industry; ability of the Company to
execute its business strategies, implement its new business model and
successfully complete its business transformation; market interest
rates; consumer confidence levels; cyclical nature of the furniture
industry; consumer and business spending; changes in relationships
with customers; customer acceptance of existing and new products; new
home and existing home sales; financial viability of the Company's
customers and their ability to continue or increase product orders;
and other factors that generally affect business. Additional risks
relating to the Company's business are set forth in the Company's Form
10-K for the year ended December 31, 2007.

The Company does not undertake any obligation to update or revise
publicly any forward-looking statements to reflect information, events
or circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticipated events or circumstances.

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Condensed Consolidated Statements of Operations (unaudited)
Chromcraft Revington, Inc.
(In thousands, except per share data)

Three Months Ended Year Ended
December 31, December 31,
----------------------- -------------------------
2007 2006 2007 2006
----------- ----------- ------------ ------------

Sales $28,345 $38,889 $123,373 $160,478
----------- ----------- ------------ ------------
Gross margin 3,271 5,959 14,801 23,636
Selling, general and
administrative
expenses 8,095 7,019 30,255 27,952
----------- ----------- ------------ ------------
Operating loss (4,824) (1,060) (15,454) (4,316)
Interest expense,
net (98) (39) (48) (232)
----------- ----------- ------------ ------------
Loss before income
tax (expense)
benefit (4,922) (1,099) (15,502) (4,548)
Income tax
(expense) benefit (3,390) 358 630 1,155
----------- ----------- ------------ ------------
Net loss $(8,312) $ (741) $(14,872) $ (3,393)
=========== =========== ============ ============

Loss per share of
common stock
Basic $ (1.84) $ (.17) $ (3.30) $ (.77)
Diluted $ (1.84) $ (.17) $ (3.30) $ (.77)

Shares used in
computing loss per
share
Basic 4,527 4,440 4,502 4,415
Diluted 4,527 4,440 4,502 4,415
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Condensed Consolidated Balance Sheets (unaudited)
Chromcraft Revington, Inc.
(In thousands)

December 31,
---------------------
2007 2006
---------- ----------

Cash and cash equivalents $ 8,785 $ 8,418
Accounts receivable 12,187 19,072
Refundable income taxes 4,325 -
Inventories 24,455 28,667
Assets held for sale 455 5,068
Prepaid expenses and other 1,266 3,104
---------- ----------

Current assets 51,473 64,329

Property, plant and equipment, net 17,456 19,212
Other assets 805 2,277
---------- ----------

Total assets $69,734 $85,818
========== ==========

Accounts payable $ 5,137 $ 5,144
Accrued liabilities 6,047 7,534
---------- ----------

Current liabilities 11,184 12,678

Deferred compensation 1,289 1,918
Other long-term liabilities 997 804
---------- ----------

Total liabilities 13,470 15,400

Stockholders' equity 56,264 70,418
---------- ----------

Total liabilities and stockholders' equity $69,734 $85,818
========== ==========
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Condensed Consolidated Statements of Cash Flows (unaudited)
Chromcraft Revington, Inc.
(In thousands)

Year Ended
December 31,
------------------
2007 2006
--------- --------
Operating Activities
Net loss $(14,872) $(3,393)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities
Depreciation and amortization expense 1,916 3,086
Deferred income taxes 3,819 (3,167)
Non-cash asset impairment charges 1,342 3,419
Non-cash ESOP compensation expense 509 771
Non-cash stock compensation expense 309 404
Non-cash inventory write-downs 5,369 3,859
Provision for doubtful accounts 1,160 (15)
Gain on disposal of assets (345) (19)
Changes in operating assets and liabilities
Accounts receivable 5,725 (322)
Refundable income taxes (4,325) -
Inventories (1,157) 4,483
Prepaid expenses (66) 722
Accounts payable (7) (304)
Accrued liabilities (1,487) 206
Deferred compensation (629) (568)
Other long-term liabilities and assets (310) (252)
--------- --------

Cash provided by (used in) operating activities (3,049) 8,910
--------- --------

Investing Activities
Capital expenditures (1,037) (1,649)
Proceeds on disposal of assets 4,493 1,157
--------- --------

Cash provided by (used in) investing activities 3,456 (492)
--------- --------

Financing Activities
Stock repurchase (4) -
Purchase of common stock by ESOP trust (36) -
--------- --------

Cash used in financing activities (40) -
--------- --------

Change in cash and cash equivalents 367 8,418

Cash and cash equivalents at beginning of period 8,418 -
--------- --------

Cash and cash equivalents at end of period $ 8,785 $ 8,418
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Chromcraft Revington, Inc.
Frank T. Kane, Senior Vice President-Finance & CFO
765-807-2640

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