On Jan. 29, Stanley Furniture (NASDAQ:STLY) released fourth-quarter earnings for the period ended Dec. 31.

  • A tough environment got tougher, knocking sales down by more than 13%.
  • As the gross margin declined, so did the operating margin. The net margin did not fall as heavily because of anti-dumping offsets.
  • With some good working-capital management, the company increased cash flow from operations, paid down some debt, and repurchased some shares.

(Figures in thousands dollars, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$70,636

$81,446

(13.3%)

Net Profit

$4,456

$5,842

(23.7%)

EPS

$0.40

$0.46

(13.0%)

Diluted Shares

11,235

12,806

(12.3%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

17.7%

24.7%

(7.0)

Operating Margin

4.0%

11.4%

(7.4)

Net Margin

6.3%

7.2%

(0.9)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$6,269

$12,556

(50.1%)

Accounts Rec.

$32,260

$36,957

(12.7%)

Inventory

$59,364

$69,961

(15.1%)



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$17,789

$16,405

8.4%

Long-Term Debt

$5,714

$8,571

(33.3%)



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$35,324

$32,802

7.7%

Capital Expenditures

$4,196

$4,986

(15.8%)

Free Cash Flow

$31,128

$27,816

11.9%



Find out why Fools always follow the money.

Related Companies:

  • Hooker Furniture (NASDAQ:HOFT)
  • Basset Furniture (NASDAQ:BSET)
  • Natuzzi (NYSE:NTZ)
  • La-Z-Boy (NYSE:LZB)

Related Foolishness:

Hooker Furniture and Stanley Furniture are both Motley Fool Hidden Gems recommendations. La-Z-Boy is an Income Investor selection. Check out either newsletter service free for 30 days.

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.