Hooker Furniture's Sturdy Quarter: Fool by Numbers

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On Feb. 8, Hooker Furniture (Nasdaq: HOFT) released fourth-quarter earnings for the period ended Nov. 30.

• Sales grew slightly despite the difficult operating environment. However, the operating margin for the quarter fell to 6.2% from 7.3% on restructuring and asset impairment charges.
• The company announced that it plans to close its last remaining wood furniture facility by the end of March, marking its exit from domestic wood furniture manufacturing.
• Hooker Furniture remains a one-star stock (out of five) in our community intelligence database, Motley Fool CAPS. Only 29 of 64 investors believe it will outperform the S&P 500.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q4 2006	Q4 2005	Change
Sales	$91.0	$90.2	0.9%
Net Profit	$3.5	$4.0	(13.3%)
EPS	$0.29	$0.34	(14.7%)
Diluted Shares	12.0	11.8	1.5%

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

Margin Checkup

	Q4 2006	Q4 2005	Change*
Gross Margin	30.7%	28.3%	2.5
Operating Margin	6.2%	7.3%	(1.1)
Net Margin	3.8%	4.5%	(0.6)

*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.	$31.9	$16.4	94.7%
Accounts Rec.	$45.4	$44.0	3.3%
Inventory	$68.1	$68.7	(0.8%)

Liabilities	Q4 2006	Q4 2005	Change
Accounts Payable	$11.3	$13.9	(18.9%)
Long-Term Debt	$8.6	$11.0	(22.3%)

Learn the ways of the balance sheet.

Cash Flow Highlights

	2006	2005	Change
Cash From Ops.	$22.3	$19.6	13.8%
Capital Expenditures	$4.3	$3.6	18.9%
Free Cash Flow	$18.1	$16.0	12.6%

Find out why Fools always follow the money.

Related Companies:

• Bassett Furniture (Nasdaq: BSET)
• Stanley Furniture (Nasdaq: STLY)
• Ethan Allen Interiors (NYSE: ETH)

Related Foolishness:

• Hooker Furniture Loses Last Shoe
• Hooker's Stinky Perfume
• Foolish Forecast: Hooker on the Hook

Hooker and Stanley are both Hidden Gems recommendations. To find out more about how small-cap stocks can boost your returns, click here for your free 30-day trial.

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.