On May 2, 2007, Furniture Brands
- EPS declined by 90.2%, thanks to restructuring costs, asset impairment and severance charges, and a soft business environment.
- The outlook for the second quarter continues to be gloomy, with net sales expected to drop by 15% and EPS with a loss in the range of $0.11 to $0.07.
- Lots of furniture makers are having trouble in today's environment. In fact, CAPS investors don't see much upside for Furniture Brands, Haverty
(NYSE:HVT) , or Motley Fool Income Investor recommendation La-Z-Boy(NYSE:LZB) , as they all have one-star ratings.
(Figures in millions, except per-share data.)
Income Statement Highlights|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$573.7 |
$661.4 |
(13.3%) |
|
Net Profit |
$2.9 |
$30.2 |
(90.5%) |
|
EPS |
$0.06 |
$0.61 |
(90.2%) |
|
Diluted Shares |
48.3 |
49.6 |
(2.5%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
21.7% |
23.3% |
(1.6) |
|
Operating Margin |
1.6% |
5.7% |
(4.0) |
|
Net Margin |
0.5% |
4.6% |
(4.1) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$48.0 |
$90.6 |
(47.0%) |
|
Accounts Rec. |
$356.5 |
$393.2 |
(9.3%) |
|
Inventory |
$496.5 |
$439.3 |
13.0% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$99.7 |
$110.7 |
(9.9%) |
|
Total Debt |
$301.6 |
$301.6 |
0.0% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$45.2 |
$4.2 |
977.4% |
|
Capital Expenditures |
$8.3 |
$5.4 |
53.7% |
|
Free Cash Flow |
$36.9 |
($1.2) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
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