On Feb. 13, La-Z-Boy (NYSE:LZB) released third-quarter earnings for the period ended Jan. 27.
- Sales decreased by 9.6%. Upholstery sales fell 11.8%, casegoods sales declined 14.6%, and retail sales increased 6.4%.
- Gross profit margin increased by 2.2%, thanks to better merchandising and selling plans, and cost reduction.
- For Q4 2007, management expects sales to decline 8%-10% compared to last year's quarter. EPS should be in the range of $0.03-$0.07.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change | |
|---|---|---|---|
|
Sales |
$403.9 |
$446.6 |
(9.6%) |
|
Net Profit* |
$6.9 |
$10.0 |
(30.4%) |
|
EPS |
$0.13 |
$0.19 |
(31.6%) |
|
Diluted Shares |
51.6 |
51.9 |
(0.5%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
27.9% |
25.7% |
2.2 |
|
Operating Margin |
2.3% |
4.0% |
(1.7) |
|
Net Margin** |
1.7% |
2.2% |
(0.5) |
**Continuing operations
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$17.5 |
$20.5 |
(14.7%) |
|
Accounts Rec. |
$217.1 |
$274.0 |
(20.8%) |
|
Inventory |
$214.2 |
$246.5 |
(13.1%) |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$60.2 |
$77.5 |
(22.3%) |
|
Long-Term Debt |
$147.1 |
$194.0 |
(24.2%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2007 |
Q3 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$28.9 |
$33.1 |
(12.5%) |
|
Capital Expenditures |
$6.0 |
$6.2 |
(3.4%) |
|
Free Cash Flow |
$22.9 |
$26.9 |
(14.6%) |
Find out why Fools always follow the money.
Related Companies:
- Stanley Furniture (NASDAQ:STLY)
- Hooker Furniture (NASDAQ:HOFT)
- Furniture Brands International (NYSE:FBN)
- Select Comfort Corporation (NASDAQ:SCSS)
- Bassett Furniture Industries (NASDAQ:BSET)
Related Foolishness:
La-Z-Boy is a Motley Fool Income Investor recommendation. For more on great stocks that pay sweet dividends and outperform the market, click here for you free 30-day trial.
Stanley Furniture, Select Comfort, and Hooker Furniture are Hidden Gems recommendations.
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