Hooker Furniture Corp (HOFT) has reported a 164.87 percent jump in profit for the quarter ended Jan. 29, 2017. The company has earned $10.98 million, or $0.95 a share in the quarter, compared with $4.14 million, or $0.38 a share for the same period last year. Revenue during the quarter surged 187.17 percent to $173.93 million from $60.56 million in the previous year period. Gross margin for the quarter contracted 674 basis points over the previous year period to 23.07 percent. Total expenses were 90.19 percent of quarterly revenues, up from 89.23 percent for the same period last year. That has resulted in a contraction of 96 basis points in operating margin to 9.81 percent.
Operating income for the quarter was $17.06 million, compared with $6.52 million in the previous year period.
"Our Hooker Casegoods, Upholstery and Home Meridian segments delivered their strongest performance of the year in the fourth quarter, enabling us to end the year with positive momentum and bring our full-year results in line with internal expectations," said Paul B. Toms Jr., chairman and chief executive officer. "Outstanding fourth quarter results were driven by Home Meridian’s significant backlog at the end of the third quarter, resulting in record shipments in the fourth quarter, along with an excellent fall furniture market and post-market orders at Hooker legacy brands," he continued. "With sales recovering at both Home Meridian and Hooker legacy brands, we demonstrated the significant earnings leverage possible with our asset-light, low fixed cost business model."
Operating cash flow improves significantly
Hooker Furniture Corp has generated cash of $31.24 million from operating activities during the year, up 35.61 percent or $8.20 million, when compared with the last year. The company has spent $88.06 million cash to meet investing activities during the year as against cash outgo of $3.46 million in the last year. It has incurred net capital expenditure of $2.45 million on net basis during the year, down 13.69 percent or $0.39 million from year ago.
Cash flow from financing activities was $42.69 million for the year as against cash outgo of $4.32 million in the last year period.
Cash and cash equivalents stood at $39.79 million as on Jan. 29, 2017, down 26.20 percent or $14.13 million from $53.92 million on Jan. 31, 2016.
Working capital increases sharply
Hooker Furniture Corp has recorded an increase in the working capital over the last year. It stood at $147.86 million as at Jan. 29, 2017, up 32.65 percent or $36.39 million from $111.46 million on Jan. 31, 2016. Current ratio was at 3.31 as on Jan. 29, 2017, down from 7.71 on Jan. 31, 2016.
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