On July 10, Sealy
- After posting nearly flat earnings in the second quarter last year, Sealy bounced back with a profit of $16.1 million, or $0.17 per share.
- Revenue rose 6.7% to $401.8 million, as sales volume soared 19.3%. But average unit selling prices sagged 10.6% in the quarter.
- Investors see little comfort in Sealy, which is currently rated a lowly one-star stock (out of a possible five) in Motley Fool CAPS, where more than half of those rating the company predict it will underperform the S&P 500.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$401.8 |
$376.7 |
6.7% |
|
Net Profit |
$16.1 |
$0.1 |
N/M* |
|
EPS |
$0.17 |
$0.0 |
N/M* |
|
Diluted Shares |
96.1 |
88.4 |
8.7% |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
42.9% |
44.7% |
(1.8) |
|
Operating Margin |
3.4% |
2.8% |
0.7 |
|
Net Margin |
4% |
0% |
4.0 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$21.7 |
$24.2 |
(10.3%) |
|
Accounts Rec. |
$208.0 |
$184.1 |
13% |
|
Inventory |
$71.2 |
$67.8 |
5% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$126.7 |
$108.9 |
16.3% |
|
Long-Term Debt |
$797.6 |
$806.9 |
(1.2%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change |
|
|---|---|---|---|
|
Cash from Ops |
$22.5 |
($19.8) |
N/A |
|
Capital Expenditures* |
$17.5 |
$15.6 |
12.1% |
|
Free Cash Flow |
$5.0 |
($35.4) |
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.
At the time of publication, Fool contributor Mike Cianciolo held no position in Sealy.
