On July 16, Motley Fool Hidden Gems pick Stanley Furniture
- 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* |
|
---|---|---|---|
Gross Margin |
20.1% |
22.7% |
(2.6) |
Operating Margin |
(4.5%) |
8.1% |
(12.7) |
Net Margin |
(3.5%) |
5.1% |
(8.6) |
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:
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