On April 2, Bassett Furniture
- Continued soft furniture retail conditions dragged down sales 15%.
- By the third quarter of fiscal 2007, the company plans to cease operations at its wood manufacturing facility in Bassett, Va.
- Operating margin decreased by 10.9 percentage points because of adverse operating leverage.
- On a positive note, improved inventory management decreased inventory carried by 17%.
(Figures in thousands, except per-share data.)
Income Statement Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Sales |
$73,420 |
$86,489 |
(15.1%) |
Net Profit |
($4,188) |
$2,180 |
N/A |
EPS |
($0.35) |
$0.18 |
N/A |
Get back to basics with the income statement.
Margin Checkup
Q1 2007 |
Q1 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
30.4% |
31.6% |
(1.2) |
Operating Margin |
(9.7%) |
1.2% |
(10.9) |
Net Margin |
(5.7%) |
2.5% |
(8.2) |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$8,456 |
$4,512 |
87.4% |
Accounts Rec. |
$42,601 |
$39,824 |
7.0% |
Inventory |
$45,111 |
$54,335 |
(17.0%) |
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Accounts Payable |
$16,440 |
$24,857 |
(33.9%) |
Long-Term Debt |
$19,360 |
$23,847 |
(18.8%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
($3,757) |
($3,844) |
N/A |
Capital Expenditures |
$218 |
$1,369 |
(84.1%) |
Free Cash Flow |
($3,975) |
($5,213) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
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