On April 24, Ethan Allen Interiors
- Because of an adverse furniture retail market and remarkable results in the third quarter of fiscal 2006, revenue decreased 7.7%.
- The earnings per share decline was partially offset by management repurchasing $20.4 million worth of stock, decreasing outstanding diluted shares by 5%.
- CEO Farooq Kathwari sees positive trends, as results for March were better than those of the previous two months. Also, Ethan Allen's target market segment is less affected by the weakening home sales that have slowed down the furniture industry.
- The Motley Fool CAPS community gives Ethan Allen a two-star rating, while competitors Furniture Brands International
(NYSE:FBN) and La-Z-Boy(NYSE:LZB) lag behind with one star.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$246.5 |
$267.1 |
(7.7%) |
|
Net Profit |
$17.5 |
$20.0 |
(12.5%) |
|
EPS |
$0.54 |
$0.59 |
(8.5%) |
|
Diluted Shares |
32.4 |
34.0 |
(5.0%) |
Get back to basics with the income statement.
Margin Checkup|
Q3 2007 |
Q3 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
52.1% |
50.5% |
1.7 |
|
Operating Margin |
11.4% |
12.5% |
(1.1) |
|
Net Margin |
7.1% |
7.5% |
(0.4) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$132.9 |
$185.8 |
(28.4%) |
|
Accounts Rec. |
$18.8 |
$26.7 |
(29.6%) |
|
Inventory |
$180.8 |
$191.6 |
(5.6%) |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$25.6 |
$28.2 |
(9.3%) |
|
Long-Term Debt |
$202.8 |
$202.7 |
0.1% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
2007 |
2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$13.7 |
$26.0 |
(47.3%) |
|
Capital Expenditures |
$12.5 |
$7.1 |
76.1% |
|
Free Cash Flow |
$1.2 |
$18.9 |
(93.7%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
La-Z-Boy is an Income Investor recommendation. Take a 30-day free trial to learn more about dividend-paying stock picks.
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