Furniture Brands International Announces Third Quarter 2002 Financial Results

Business Wire, Oct 23, 2002

                    FURNITURE BRANDS INTERNATIONAL

                    CONSOLIDATED OPERATING RESULTS
                (Dollars in thousands except per share)
                              (Unaudited)

                           Three Months Ended       Nine Months Ended
                              September 30,            September 30,
                             2002        2001        2002        2001
                       ----------- ----------- -----------  ----------

Net sales               $  563,246  $  448,682  $1,802,218  $1,414,512
Costs and expenses:
  Cost of operations       404,899     327,787   1,290,727   1,033,237
  Selling, general and
    administrative
    expenses               103,552      82,115     322,320     251,392
  Depreciation and
    amortization            12,018      13,507      36,840      43,530
  Asset impairment
    charges                   --            --        --        18,000
                        ----------  ----------  ----------  ----------
Earnings from
  operations                42,777      25,273     152,331      68,353

Interest expense             5,388       5,197      16,482      17,505
Other income, net              911         790       2,981       2,209
                        ----------  ----------  ----------  ----------
Earnings before income
  tax expense               38,300      20,866     138,830      53,057
Income tax expense          13,642       6,995      49,316      17,858
                        ----------  ----------  ----------  ----------
Net earnings            $   24,658  $   13,871  $   89,514  $   35,199
                        ==========  ==========  ==========  ==========

Net earnings per
  common share
  (diluted)             $     0.44  $     0.27  $     1.59  $     0.69
                        ==========  ==========  ==========  ==========

Average diluted common
  shares outstanding
  (in thousands)            56,176      51,466      56,458      51,255
                        ==========  ==========  ==========  ==========

    Note: Effective January 1, 2002, the company adopted FAS 142
        regarding amortization of goodwill and other intangible
        assets. If this accounting change had occurred effective
        January 1, 2001, the company would have reported diluted net
        earnings per common share of $0.32 and $0.85 for the
        three-month and nine-month periods ended September 30, 2001,
        respectively.


                    FURNITURE BRANDS INTERNATIONAL

                 CONSOLIDATED CONDENSED BALANCE SHEETS
                        (Dollars in thousands)
                              (Unaudited)

                                             September 30, December 31,
                                                     2002         2001
                                             ------------- ------------
Assets

Current assets:
  Cash and cash equivalents                     $   18,181   $   15,707
  Receivables, net                                 383,102      359,493
  Inventories                                      420,275      369,773
  Prepaid expenses and other current assets         28,387       33,742
                                                ----------   ----------
    Total current assets                           849,945      778,715
Net property, plant and equipment                  329,616      321,640
Intangible assets                                  359,043      367,305
Other assets                                        38,551       35,829
                                                ----------   ----------
                                                $1,577,155   $1,503,489
                                                ==========   ==========

Liabilities and Shareholders' Equity

Current liabilities:
  Accrued interest expense                      $    3,087   $    2,805
  Accounts payable and other accrued expenses      212,610      172,490
                                                ----------   ----------
    Total current liabilities                      215,697      175,295
Long-term debt                                     374,800      454,400
Other long-term liabilities                        120,799      114,135

Shareholders' equity                               865,859      759,659
                                                ----------   ----------
                                                $1,577,155   $1,503,489
                                                ==========   ==========