National Lumber Reports $154,000 Loss for Year

National Lumber & Supply Inc. reported a loss of $154,000 for the fiscal year ended Jan. 31., due primarily to a $960,000 loss in the fourth quarter.

In contrast, the Fountain Valley-based chain of home improvement centers earned net income of $1.3 million in its previous fiscal year, including net income of $341,000 in the fourth quarter of that year, which ended Dec. 31, 1984.

Nonetheless, the company’s revenues for the latest fiscal year increased 6.7% to $136.4 million from $127.9 million. Fourth-quarter revenue was $34 million, up 7.3% from $31.7 million.

Melvin Jaffee, National’s president, said expansion accounted for $1.89 million in expenses during the fiscal year and “obviously had a significant effect on our bottom line. Also, advertising expenditures were increased significantly to support the store expansion effort.”

Jaffee said the company’s insurance expense increased 50% in 1985 to more than $1.6 million and that general, administrative and overhead expenditures rose 5% over the projected budget.