Stanley Furnishes Another Disappointment: Fool by Numbers (STLY)

Stanley Furnishes Another Disappointment: Fool by Numbers

By Motley Fool Contributors | More Articles
April 18, 2007 | Comments (0)

On April 17, Stanley Furniture (Nasdaq: STLY ) released first-quarter earnings for the period ended March 31.

Net sales fell 10%, as a deteriorating housing market continues to plague demand in the furniture industry.
Declining sales and production levels, operating inefficiencies, and higher raw material and compensation costs put a hole in margins this quarter.
The Motley Fool Community is not high on the furniture industry, as Stanley Furniture and its peers, La-Z-Boy (NYSE: LZB ) and Ethan Allen Interior (NYSE: ETH ) , all rate a one-star.

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

Income Statement Highlights

	Q1 2007	Q1 2006	Change
Sales	$75,108	$83,524	(10.1%)
Net Profit	$1,676	$5,392	(68.9%)
EPS	$0.15	$0.43	(65.1%)
Diluted Shares	10,994	12,567	(12.5%)

Get back to basics with the income statement.

Margin Checkup

Q1 2007	Q1 2006	Change*
18.0%	23.7%	(5.7)
4.1%	10.3%	(6.2)
2.2%	6.5%	(4.2)

*Expressed in percentage points

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q1 2007	Q1 2006	Change
Cash + ST Invest.	$2,332	$21,918	(89.4%)
Accounts Rec.	$35,314	$40,234	(12.2%)
Inventory	$56,267	$65,117	(13.6%)
Liabilities	Q1 2007	Q1 2006	Change
Accounts Payable	$17,053	$16,463	3.6%
Long-Term Debt	$5,714	$8,571	(33.3%)

The balance sheet reflects the company's health.

Cash Flow Highlights

	Q1 2007	Q1 2006	Change
Cash From Ops.	$5,518	$11,215	(50.8%)
Capital Expenditures	$1,126	$216	421.3%
Free Cash Flow	$4,392	$10,999	(60.1%)

Free cash flow is a Fool's best friend.

Related Foolishness:

Stanley Furniture is a Motley Fool Hidden Gems recommendation. For more on the difference small caps can make, come join the Hidden Gems community free for 30-days.

La-Z-Boy is a Motley Fool Income Investor recommendation.

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.

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