On May 7, A.C. Moore Arts & Crafts
- Net profit increased 128.8% during the quarter, thanks to higher gross margins, lower store opening costs, and an increase in interest income.
- The company's comparable-store sales decreased by 4.9% versus the same period in 2006, causing sales to rise only 2%.
- Here is an interesting comment from management: "We realize that in the near term we are foregoing comp-store sales increases to lay the foundation for improved profitability." If that's the case, the company's one-star CAPS rating may soon change.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$135.4 |
$132.9 |
1.9% |
|
Net Profit |
$0.6 |
$0.3 |
128.8% |
|
EPS |
$0.03 |
$0.01 |
200.0% |
|
Diluted Shares |
20.3 |
20.1 |
1.0% |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
41.1% |
40.0% |
1.1 |
|
Operating Margin |
0.5% |
0.4% |
0.2 |
|
Net Margin |
0.4% |
0.2% |
0.2 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$67.8 |
$47.4 |
43.1% |
|
Inventory |
$147.2 |
$164.9 |
(10.7%) |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$47.0 |
$48.0 |
(2.0%) |
|
Long-Term Debt |
$21.0 |
$23.6 |
(10.9%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
($2.9) |
($10.7) |
n/a |
|
Capital Expenditures |
$5.1 |
$4.5 |
13.3% |
|
Free Cash Flow |
($8.0) |
($15.2) |
n/a |
Free cash flow is a Fool's best friend.
Related Foolishness:
- A.C. Moore Takes Stock of Its Future
- Foolish Forecast: A.C. Moore Story Still Unraveling
- Jo-Ann Stores Redecorates
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