On July 5, Bassett Furniture Industries
- Sales dropped 14% because of "soft retail conditions," which hurt both retail and wholesale shipments.
- Inventories decreased by $6.2 million, primarily because of improved inventory management and lower sales.
- While the company maintained its gross margin, the lower sales were spread over the same level of selling, general, and administrative costs. This deleveraging of the income statement caused the operating margin to plummet.
- Bassett has plenty of 1-star (our lowest rating) company in Motley Fool CAPS. Income Investor recommendation La-Z-Boy
(NYSE:LZB) and Ethan Allen(NYSE:ETH) are there, too.
(Figures in thousands, except per-share data.)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$75,432.0 |
$87,663.0 |
(14.0%) |
|
Net Profit |
($2,420.0) |
$2,833.0 |
N/A |
|
EPS |
($0.20) |
$0.24 |
N/A |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
31.8% |
31.7% |
0.1 |
|
Operating Margin |
(7.9%) |
1.2% |
(9.1) |
|
Net Margin |
(3.2%) |
3.2% |
(6.4) |
*Expressed in percentage points
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$7,347.0 |
$5,321.0 |
38.1% |
|
Accounts Rec. |
$39,922.0 |
$40,820.0 |
(2.2%) |
|
Inventory |
$42,712.0 |
$52,929.0 |
(19.3%) |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$18,704.0 |
$21,039.0 |
(11.1%) |
|
Long-Term Debt* |
$19,188.0 |
$26,606.0 |
(27.9%) |
*Includes real estate notes payable
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
($1,484.0) |
($6,547.0) |
N/A |
|
Capital Expenditures |
$844.0 |
$5,628.0 |
(85.0%) |
|
Free Cash Flow |
($2,328.0) |
($12,175.0) |
N/A |
Free cash flow is a Fool's best friend.
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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.
