Faded Furniture Brands: Fool by Numbers (FBN)

Faded Furniture Brands: Fool by Numbers

By Motley Fool Contributors | More Articles
May 3, 2007 | Comments (0)

On May 2, 2007, Furniture Brands (NYSE: FBN ) released first-quarter earnings for the period ended March 31, 2007.

EPS declined by 90.2%, thanks to restructuring costs, asset impairment and severance charges, and a soft business environment.
The outlook for the second quarter continues to be gloomy, with net sales expected to drop by 15% and EPS with a loss in the range of $0.11 to $0.07.
Lots of furniture makers are having trouble in today's environment. In fact, CAPS investors don't see much upside for Furniture Brands, Haverty (NYSE: HVT ) , or Motley Fool Income Investor recommendation La-Z-Boy (NYSE: LZB ) , as they all have one-star ratings.

(Figures in millions, except per-share data.)

Income Statement Highlights

	Q1 2007	Q1 2006	Change
Sales	$573.7	$661.4	(13.3%)
Net Profit	$2.9	$30.2	(90.5%)
EPS	$0.06	$0.61	(90.2%)
Diluted Shares	48.3	49.6	(2.5%)

Get back to basics with the income statement.

Margin Checkup

Q1 2007	Q1 2006	Change*
21.7%	23.3%	(1.6)
1.6%	5.7%	(4.0)
0.5%	4.6%	(4.1)

*Expressed in percentage points

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q1 2007	Q1 2006	Change
Cash + ST Invest.	$48.0	$90.6	(47.0%)
Accounts Rec.	$356.5	$393.2	(9.3%)
Inventory	$496.5	$439.3	13.0%

Liabilities	Q1 2007	Q1 2006	Change
Accounts Payable	$99.7	$110.7	(9.9%)
Total Debt	$301.6	$301.6	0.0%

The balance sheet reflects the company's health.

Cash Flow Highlights

	Q1 2007	Q1 2006	Change
Cash From Ops.	$45.2	$4.2	977.4%
Capital Expenditures	$8.3	$5.4	53.7%
Free Cash Flow	$36.9	($1.2)	N/A

Free cash flow is a Fool's best friend.

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.

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