Stanley Furniture Still Uncomfortable: Fool by Numbers

On July 16, Motley Fool Hidden Gems pick Stanley Furniture (Nasdaq: STLY  ) released second-quarter earnings for the period ended June 30.

• Margins dipped in response to lower sales and production levels, coupled with higher raw material and compensation costs.
  
  
• The net loss of $0.23 per share included a one-time charge of $6.6 million, resulting from the final termination of the company's defined-benefit pension plan.
  
  
• A portion of the $25 million the company received from a private placement note was used to repurchase $11.3 million in shares, and to pay $2.1 million in dividends.
  
  
• As a result of deteriorating business conditions in the industry, management lowered its sales and earnings guidance.

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

Income Statement Highlights

	Q2 2007	Q2 2006	Change
Sales	$67,722.0	$77,476.0	(12.6%)
Net Profit	($2,376.0)	$3,937.0	N/A
EPS	($0.23)	$0.32	N/A
Diluted Shares	10,483.0	12,264.0	(14.5%)

Get back to basics with the income statement.

Margin Checkup

	Q2 2007	Q2 2006	Change*
	20.1%	22.7%	(2.6)
	(4.5%)	8.1%	(12.7)
	(3.5%)	5.1%	(8.6)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q2 2007	Q2 2006	Change
Cash + ST Invest.	$18,542.0	$10,627.0	74.5%
Accounts Rec.	$31,024.0	$37,958.0	(18.3%)
Inventory	$62,873.0	$61,456.0	2.3%

Liabilities	Q2 2007	Q2 2006	Change
Accounts Payable	$18,461.0	$16,851.0	9.6%
Long-Term Debt	$29,286.0	$7,143.0	310%

The balance sheet reflects the company's health.

Cash Flow Highlights

	YTD 2007	YTD 2006	Change
Cash From Ops.	$2,567.0	$16,175.0	(84.1%)
Capital Expenditures	$1,947.0	$749.0	159.9%
Free Cash Flow	$620.0	$15,426.0	(96%)

Free cash flow is a Fool's best friend.

Related Foolishness:

• Stanley Still Short
• La-Z-Boy Takes a Break
• Furniture Branded

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.