A Short Report for Hooker Furniture: Fool by Numbers

On March 16, Hooker Furniture (Nasdaq: HOFT  ) released fourth-quarter earnings for the period ended Jan. 28.

• The company is changing its fiscal year ending from November to January. As a result, it reported only two months of financial performance
• Gross profit margin improved by 80 bps, primarily attributable to an increased proportion of higher-margin imported wood and upholstered furniture sales.
• The company recorded a net loss mainly because of charges related to terminating its employee stock ownership plan (ESOP) and restructuring charges.

(Figures in thousands, except per-share data)

Income Statement Highlights

	Q4 2006	Q4 2005	Change
Sales	$49,061	$85,339	N/A
Net Profit	($18,415)	$3,560	N/A
EPS	($1.52)	$0.30	N/A
Diluted Shares	12,113	11,890	1.9%

Get back to basics with the income statement.

Margin Checkup

	Q4 2006	Q4 2005	Change*
Gross Margin	27.8%	26.9%	0.9
Operating Margin**	8.6%	7.0%	1.6
Net Margin	(37.5%)	4.2%	(41.7)

*Expressed in percentage points
**Less ESOP termination and restructuring charges

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q4 2006	Q4 2005	Change
Cash + ST Invest.	$47,085	$26,910	75.0%
Accounts Rec.	$37,744	$44,282	(14.8%)
Inventory	$62,803	$64,516	(2.7%)

Liabilities	Q4 2006	Q4 2005	Change
Accounts Payable	$10,071	$15,663	(35.7%)
Long-Term Debt	$7,912	$10,414	(24.0%)

The balance sheet reflects the company's health.

Cash Flow Highlights

	Q4 2006	Q4 2005	Change
Cash From Ops.	$16,215	$11,592	39.9%
Capital Expenditures	$419	$552	(24.1%)
Free Cash Flow	$15,796	$11,040	43.1%

Free cash flow is a Fool's best friend.

Related Foolishness:

• Hooker Furniture Loses Last Shoe
• Hooker on the Hook
• Hooker Does a U-Turn

Hooker Furniture is a Motley Fool Hidden Gems recommendation. To find other undiscovered companies that can give your portfolio a boost, simply sign up today 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.