On Sept. 20, Herman Miller
- Sales at Herman Miller rose 9.3% to $491.7 million, but weakness in the U.S. market led to a decline in the company's total orders and backlog.
- Earnings improved by 26.8% to $33.5 million, or $0.54 per share, which was better than expected. However, the office furnishings specialist projected second-quarter results of $0.51 to $0.57 per share, which is below estimates of $0.59 per share.
- The company plans to focus on increasing scale in high-growth areas while it waits out the slowdown in the U.S.
- Folks over at the Motley Fool CAPS community have seen their scores slip as Herman Miller's stock keeps falling. They haven't lost faith yet, though, giving the stock a four-star rating (out of a possible five), while competitor Steelcase
(NYSE:SCS) earns three stars.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2008 |
Q1 2007 |
Change |
|
|---|---|---|---|
|
Sales |
$491.7 |
$449.7 |
9.3% |
|
Net Profit |
$33.5 |
$28.5 |
17.5% |
|
EPS |
$0.54 |
$0.43 |
25.6% |
|
Diluted Shares |
62.2 |
65.6 |
(5.1%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2008 |
Q1 2007 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
34.1% |
33.9% |
0.2 |
|
Operating Margin |
10.9% |
10.2% |
0.8 |
|
Net Margin |
6.8% |
6.3% |
0.5 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2008 |
Q1 2007 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$81.4 |
$57.0 |
42.8% |
|
Accounts Rec.* |
$189.8 |
$179.0 |
6.0% |
|
Inventory |
$60.0 |
$58.2 |
3.1% |
|
Liabilities |
Q1 2008 |
Q1 2007 |
Change |
|---|---|---|---|
|
Accounts Payable |
$119.1 |
$116.3 |
2.4% |
|
Long-Term Debt |
$174.1 |
$176.4 |
(1.3%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2008 |
Q1 2007 |
Change |
|
|---|---|---|---|
|
Cash from Ops |
$31.8 |
($6.4) |
N/A |
|
Capital Expenditures |
$8.9 |
$7.6 |
17.1% |
|
Free Cash Flow |
$22.9 |
($14.0) |
N/A |
Free cash flow is a Fool's best friend.
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