On April 17, Stanley Furniture
- Net sales fell 10%, as a deteriorating housing market continues to plague demand in the furniture industry.
- Declining sales and production levels, operating inefficiencies, and higher raw material and compensation costs put a hole in margins this quarter.
- The Motley Fool Community is not high on the furniture industry, as Stanley Furniture and its peers, La-Z-Boy
(NYSE:LZB) and Ethan Allen Interior(NYSE:ETH) , all rate a one-star.
(Figures in thousands, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$75,108 |
$83,524 |
(10.1%) |
|
Net Profit |
$1,676 |
$5,392 |
(68.9%) |
|
EPS |
$0.15 |
$0.43 |
(65.1%) |
|
Diluted Shares |
10,994 |
12,567 |
(12.5%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
18.0% |
23.7% |
(5.7) |
|
Operating Margin |
4.1% |
10.3% |
(6.2) |
|
Net Margin |
2.2% |
6.5% |
(4.2) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,332 |
$21,918 |
(89.4%) |
|
Accounts Rec. |
$35,314 |
$40,234 |
(12.2%) |
|
Inventory |
$56,267 |
$65,117 |
(13.6%) |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|
Accounts Payable |
$17,053 |
$16,463 |
3.6% |
|
Long-Term Debt |
$5,714 |
$8,571 |
(33.3%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$5,518 |
$11,215 |
(50.8%) |
|
Capital Expenditures |
$1,126 |
$216 |
421.3% |
|
Free Cash Flow |
$4,392 |
$10,999 |
(60.1%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
Stanley Furniture is a Motley Fool Hidden Gems recommendation. For more on the difference small caps can make, come join the Hidden Gems community free for 30-days.
La-Z-Boy is a Motley Fool Income Investor recommendation.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
