On Jan. 28, wood furniture designer and longtime Motley Fool Hidden Gems recommendation Stanley Furniture
- The popped housing bubble hit hard, as you can plainly see from these results.
- Oh, look! A healthy cash balance! ... which came from a not-so-healthy new debt load. So much for that bright spot.
- Management is hoping for a market bounce, but prepares for even worse conditions just in case.
- Our CAPS players give Stanley the highest accolades in its immediate circle of competition, with a 52% approval rating. That's still a very solid, bottom-dwelling one-star rating. Let us know whether you think that's fair.
(Figures in millions, except per-share data)
Income Statement Highlights
FY 2007 |
FY 2006 |
Change |
|
---|---|---|---|
Sales |
$282.8 |
$307.5 |
(8%) |
Net Profit |
$5.9 |
$16.8 |
(64.8%) |
EPS |
$0.55 |
$1.41 |
(61%) |
Diluted Shares |
10.7 |
11.9 |
(10.5%) |
Get back to basics with the income statement.
Margin Checkup
FY 2007 |
FY 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
16.6% |
21.1% |
(4.5) |
Operating Margin |
0.3% |
7.4% |
(7.1) |
Net Margin |
2.1% |
5.5% |
(3.4) |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
FY 2007 |
FY 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$31.6 |
$6.3 |
404.8% |
Accounts Rec. |
$25.4 |
$32.3 |
(21.3%) |
Inventory |
$58.1 |
$59.4 |
(2.2%) |
Liabilities |
FY 2007 |
FY 2006 |
Change |
---|---|---|---|
Accounts Payable |
$16.1 |
$17.8 |
(9.5%) |
Long-Term Debt |
$29.3 |
$5.7 |
412.5% |
The balance sheet reflects the company's health.
Cash Flow Highlights
FY 2007 |
FY 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
$23.0 |
$35.3 |
(34.9%) |
Capital Expenditures |
$4.0 |
$4.2 |
(5.8%) |
Free Cash Flow |
$19.1 |
$31.1 |
(38.8%) |
$7.9 |
$18.4 |
(57.2%) |
Free cash flow is a Fool's best friend.
Competitive Context
Market Cap |
Trailing P/E Ratio |
CAPS Rating |
|
---|---|---|---|
Ethan Allen Interiors |
$867 |
12.0 |
* |
Pier 1 Imports |
$557 |
N/A |
* |
Furniture Brands International |
$439 |
N/A |
* |
La-Z-Boy |
$395 |
N/A |
* |
Stanley |
$140 |
27.4 |
* |
Keep your partners close and the competition in your vest pocket.
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