Exhibit 99.1

(336) 884-7698

STANLEY FURNITURE ANNOUNCES

2015 RESULTS

Company reports third consecutive quarter of profitability

High Point, NC, February 23, 2016/Businesswire/ -- Stanley Furniture Company, Inc. (Nasdaq-NGS:STLY) today reports sales and operating results for the fourth quarter and total year ended December 31, 2015. 

Fourth quarter 2015 financial results compared to prior year:

·       Net sales were $13.8 million compared to $16.0 million, down 13.9%. Sales were negatively affected by delays in shipping order backlog of new introductions due to strategic overseas manufacturing initiatives.

·       Gross profit margins improved to 25.0% compared to 23.3%.

·       Selling, general and administrative expenses were $2.7 million, or 19.9% of net sales, compared to $3.1 million, or 19.5% of net sales.

·      Operating income was $713,000, or 5.2% of net sales, compared to $599,000, or 3.7% of net sales.

·      Net income from continuing operations was $919,000, or $.06 per diluted share, compared to a net loss of $2.5 million. The current quarter included the receipt of $407,000 in Continued Dumping Subsidy Offset Act (CDSOA) proceeds, net of taxes.

·      The company generated cash from operating activities of $2.1 million and used $1.2 million to pay down policy loans on corporate-owned life insurance policies. 

Total year 2015 financial results compared to prior year:

·       Net sales were $57.4 million compared to $60.6 million, down 5.4%. Second half shipments included an abnormally low volume from current year product introductions due to strategic overseas manufacturing initiatives delaying the shipment of these introductions.

·      Gross profit margins improved roughly 20%, from 19.8% to 23.9%, due to lower discounting and lower operation support costs.  Included in prior year margins was a $354,000 restructuring charge, or 0.6% of net sales.

·      Selling, general and administrative expenses declined 15% as spending was reduced by $2.2 million. The decreased spending resulted from the aligning of our cost structure with lower sales volume and a new operational support  model overseas.

·      Operating income was $1.0 million compared to a loss of $2.9 million.

·       Net income from continuing operations was $5.4 million, including the receipt of $5.2 million in CDSOA proceeds (net of taxes), compared to a loss of $7.9 million.

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·       CDSOA proceeds and cash generated from operations were used to pay down $6.5 million in policy loans and interest on corporate-owned life insurance policies used to fund the company’s legacy deferred compensation plan.

·       As of December 31, 2015, the company’s financial position reflected $7.2 million in cash and restricted cash and $22.3 million in net cash surrender value on life insurance policies.

The company has two significant growth initiatives underway:

·       The company has established a strategic manufacturing alliance with a reputable, cost-efficient producer in Vietnam, Starwood Manufacturing VN Corporation.  Starwood will manufacture Stanley’s more recently introduced products in a stand-alone facility designed by Stanley for its products and constructed by Starwood over the last half of 2015 on its existing manufacturing campus outside of Ho Chi Minh City. “Stanley is a company with a long heritage of manufacturing,” said Prillaman. “By partnering with a manufacturer overseas, we are developing a differentiating sourcing strategy that has already lowered costs, but should also allow us to lower lead times for improved customer service and provide customers with more consistent product quality,  as we market and distribute a broader product line to increase revenues.” 

·       The company’s launch of its Stone & Leigh product line represents the beginning of one of the industry’s few consumer-facing brands in the nursery and youth category. The company has direct mail, email and online advertising campaigns underway designed to drive younger consumers into retail stores carrying this product. "We believe our knowledge and experience with this product category combined with a direct-to-consumer marketing plan and the benefits of our new overseas manufacturing alliance provide our customers a recipe for retail success,” said Prillaman.  “Our emphasis on developing superior product, while also implementing a proven omni-channel distribution model, allows us to build strong relationships with powerful retailers who recognize the need to attract a Millennial consumer demographic."  The Stone & Leigh product line is manufactured exclusively through the company’s new overseas alliance.

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Stock Repurchase Plan

The company announced today that its board of directors has approved the resumption of repurchases of company common stock.   In July 2012, the board of directors authorized the purchase of up to $5.0 million of company common stock. Approximately $4.0 million remains under this authorization, although no shares have been purchased under this authorization since 2013. These repurchases may be made from time to time in the open market, in privately negotiated transaction, or otherwise, at prices the company deems appropriate.      

Investor Conference Call

The company will host a conference call Wednesday morning, February 24, 2016, at 9:00 a.m. Eastern Time. The dial-in-number is (877) 407-8029. The call will also be web cast and archived on the company’s web site at www.stanleyfurniture.com. The dial-in-number for the replay (available through March 24, 2016) is (877) 660-6853, the conference number is 13627353.

About the Company

Established in 1924, Stanley Furniture Company, Inc. is a leading design, marketing and overseas sourcing resource in the middle-to-upscale segment of the wood residential market. The company offers a diversified product line supported by an overseas sourcing model and markets its brands through the wholesale trade’s network of brick-and-mortar furniture retailers, online retailers and interior designers worldwide, as well as through direct sales to the consumer through direct sales to the consumer through a localized approach to ecommerce fulfillment.  The company’s common stock is traded on the NASDAQ stock market under the symbol STLY.

Forward-Looking Statements

Certain statements made in this news release are not based on historical facts, but are forward-looking statements. These statements can be identified by the use of forward-looking terminology such as “believes,” “estimates,” “expects,” “may,” “will,” “should,” or “anticipates,” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy.  These statements reflect our reasonable judgment with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.  Such risks and uncertainties include disruptions in foreign sourcing including those arising from supply or distribution disruptions or those arising from changes in political, economic and social conditions, as well as laws and regulations, in countries from which we source products, international trade policies of the United States and countries from which we source products, the inability to raise prices in response to inflation and increasing costs, lower sales due to worsening of current economic conditions, the cyclical nature of the furniture industry,  business failures or loss of large customers, failure to anticipate or respond to changes in consumer tastes, fashions and perceived value in a timely manner, competition in the furniture industry, insolvency of the insurance company that holds corporate- owned life insurance policies, environmental, health, and safety  compliance costs,  failure or interruption of our information technology infrastructure.  Any forward-looking statement speaks only as of the date of this news release and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

All earnings per share amounts are shown on a diluted basis.

TABLES FOLLOW

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Note:

We have included the above reconciliation of reported financial measures according to GAAP to non-GAAP financial measures because we believe that this reconciliation provides useful information that allows investors to compare operating results to those of other periods by excluding discontinued operations, CDSOA receipts (net of taxes), asset impairment charges and restructuring related charges. These measures should be considered in addition to results prepared in accordance with GAAP and should not be considered a substitute for or superior to GAAP results.

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