On Feb. 20, Haverty Furniture (NYSE:HVT) released earnings for the fourth quarter ended Dec. 31.

  • Revenues dropped 4.2% on the back of a 6.7% decrease in same-store sales.
  • The 53% drop in EPS to $0.14 was due to lower sales, an increase in selling, general, and administrative costs, and a $1.2 million one-time gain in Q4 2005.
  • For the full year, EPS rose 6.1% to $0.70, while free cash flow crept into positive territory at $4.4 million.
  • Two-thirds of the Motley Fool CAPS players weighing in on Haverty pick it to underperform.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$216.0

$225.6

(4.2%)

Net Profit

$3.2

$6.8*

(53.1%)

EPS

$0.14

$0.30*

(53.3%)

Diluted Shares

22.9

22.5

2.0%

*Includes a $1.2 million one-time gain

Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

50.2%

48.4%

1.8

Operating Margin

2.4%

4.6%

(2.1)

Net Margin

1.5%

3.0%

(1.5)

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$12.1

$11.1

9.2%

Accounts Rec.

$64.0

$80.7

(20.7%)

Inventory

$124.8

$107.6

15.9%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable*

$82.0

$85.8

(4.5%)

Long-Term Debt

$27.5

$31.0

(11.3%)

*Accounts payable includes accrued expenses

Learn the ways of the balance sheet.

Cash Flow Highlights

2006

2005

Change

Cash From Ops.

$28.0

$31.7

(11.7%)

Capital Expenditures

$23.6

$35.0

(32.5%)

Free Cash Flow

$4.4

($3.3)

N/A



Find out why Fools always follow the money.

Related companies:

  • Pier 1 Imports (NYSE:PIR)
  • Restoration Hardware (NASDAQ:RSTO)
  • Kirkland's (NASDAQ:KIRK)
  • Design Within Reach (NASDAQ:DWRI)
  • Bassett Furniture (NASDAQ:BSET)

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