Recs

1

Plenty of Bounce at Sealy: Fool by Numbers

On July 10, Sealy (NYSE: ZZ  ) announced second-quarter earnings for the period ended May 27.

  • 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%

Profit

$16.1

$0.1

N/M*

$0.17

$0.0

N/M*

Diluted Shares

96.1

88.4

8.7%

*Not meaningful

Get back to basics with the income statement.

Margin Checkup

Q2 2007

Q2 2006

Change*

42.9%

44.7%

(1.8)

3.4%

2.8%

0.7

4%

0%

4.0

*Expressed in percentage points

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

*

$17.5

$15.6

12.1%

$5.0

($35.4)

N/A

*Net of asset sales.

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.


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Related Tickers

2/14/2012 4:02 PM
ZZ $1.59 Up +0.03 +1.92%
Sealy Corp CAPS Rating: **

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