On June 6, Hooker Furniture
- The industrywide slowdown punished Hooker, whose sales decreased 14.8%.
- Rising production costs, coupled with the decrease in sales, caused margins to fall across the board.
- A selldown of inventory allowed the company to generate $19.6 million in free cash flow and increased cash on the balance sheet by 269% from the year-ago quarter.
- Check out why more than 29,000 Motley Fool CAPS investors are bearish about Hooker Furniture, a Motley Fool Hidden Gems recommendation, and rivals such as Ethan Allen Interiors
(NYSE:ETH) and Stanley Furniture(NASDAQ:STLY) .
(Figures in thousands, except per-share data.)
Income Statement Highlights
|
Q1 2008 |
Q1 2007 |
Change |
|
|---|---|---|---|
|
Sales |
$77,294.0 |
$90,694.0 |
(14.8%) |
|
Net Profit |
$4,286.0 |
$5,832.0 |
(26.5%) |
|
EPS |
$0.33 |
$0.49 |
(32.7%) |
|
Diluted Shares |
13,173.0 |
11,928.0 |
10.4% |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2008 |
Q1 2007 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
28.6% |
29.6% |
(1.0) |
|
Operating Margin |
8.0% |
10.3% |
(2.3) |
|
Net Margin |
5.6% |
6.4% |
(0.9) |
*Expressed in percentage points
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2008 |
Q1 2007 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$46,687.0 |
$12,649.0 |
269.1% |
|
Accounts Rec. |
$39,180.0 |
$44,832.0 |
(12.6%) |
|
Inventory |
$54,591.0 |
$83,072.0 |
(34.3%) |
|
Liabilities |
Q1 2008 |
Q1 2007 |
Change |
|---|---|---|---|
|
Accounts Payable |
$11,958.0 |
$14,272.0 |
(16.2%) |
|
Long-Term Debt |
$7,257.0 |
$9,806.0 |
(26.0%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2008 |
Q1 2007 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$19,609.0 |
($11,188.0) |
N/A |
|
Capital Expenditures |
$730.0 |
$1,778.0 |
(58.9%) |
|
Free Cash Flow |
$18,879.0 |
($12,966.0) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
Stanley Furniture is also a Hidden Gems recommendation. To find more small-cap stocks flying under the market's radar, join Tom Gardner and other investors like you on the discussion boards -- available for 30 days with a free trial.
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