Stanley Swoons: Fool by Numbers
By
Anders Bylund
January 29, 2008
|
On Jan. 28, wood furniture designer and longtime Motley Fool Hidden Gems recommendation Stanley Furniture (Nasdaq: STLY) released earnings for the 2007 fiscal year, ended Dec. 31.
- The popped housing bubble hit hard, as you can plainly see from these results.
- Oh, look! A healthy cash balance! ... which came from a not-so-healthy new debt load. So much for that bright spot.
- Management is hoping for a market bounce, but prepares for even worse conditions just in case.
- Our CAPS players give Stanley the highest accolades in its immediate circle of competition, with a 52% approval rating. That's still a very solid, bottom-dwelling one-star rating. Let us know whether you think that's fair.
(Figures in millions, except per-share data)
Income Statement Highlights
|
FY 2007
|
FY 2006
|
Change
|
|
Sales
|
$282.8
|
$307.5
|
(8%)
|
|
Net Profit
|
$5.9
|
$16.8
|
(64.8%)
|
|
EPS
|
$0.55
|
$1.41
|
(61%)
|
|
Diluted Shares
|
10.7
|
11.9
|
(10.5%)
|
Get back to basics with the income statement.
Margin Checkup
|
FY 2007
|
FY 2006
|
Change*
|
|
Gross Margin
|
16.6%
|
21.1%
|
(4.5)
|
|
Operating Margin
|
0.3%
|
7.4%
|
(7.1)
|
|
Net Margin
|
2.1%
|
5.5%
|
(3.4)
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
FY 2007
|
FY 2006
|
Change
|
|
Cash + ST Invest.
|
$31.6
|
$6.3
|
404.8%
|
|
Accounts Rec.
|
$25.4
|
$32.3
|
(21.3%)
|
|
Inventory
|
$58.1
|
$59.4
|
(2.2%)
|
|
Liabilities
|
FY 2007
|
FY 2006
|
Change
|
|
Accounts Payable
|
$16.1
|
$17.8
|
(9.5%)
|
|
Long-Term Debt
|
$29.3
|
$5.7
|
412.5%
|
The balance sheet reflects the company's health.
Cash Flow Highlights
|
FY 2007
|
FY 2006
|
Change
|
|
Cash From Ops.
|
$23.0
|
$35.3
|
(34.9%)
|
|
Capital Expenditures
|
$4.0
|
$4.2
|
(5.8%)
|
|
Free Cash Flow
|
$19.1
|
$31.1
|
(38.8%)
|
|
Owner Earnings
|
$7.9
|
$18.4
|
(57.2%)
|
Free cash flow is a Fool's best friend.
Competitive Context
|
Market Cap
|
Trailing P/E Ratio
|
CAPS Rating
|
|
Ethan Allen Interiors (NYSE: ETH)
|
$867
|
12.0
|
*
|
|
Pier 1 Imports (NYSE: PIR)
|
$557
|
N/A
|
*
|
|
Furniture Brands International (NYSE: FBN)
|
$439
|
N/A
|
*
|
|
La-Z-Boy (NYSE: LZB)
|
$395
|
N/A
|
*
|
|
Stanley
|
$140
|
27.4
|
*
|
Using the latest reported numbers from Yahoo! Finance.
Keep your partners close and the competition in your vest pocket.
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