Hooker Furniture Corporation (HOFT) has reported a 73.33 percent jump in profit for the quarter ended Aug. 02, 2015. The company has earned $3.94 million, or $0.36 a share in the quarter, compared with $2.27 million, or $0.21 a share for the same period last year. Revenue during the quarter grew 9.58 percent to $60.14 million from $54.88 million in the previous year period. Gross margin for the quarter expanded 188 basis points over the previous year period to 26.76 percent. Total expenses were 90.26 percent of quarterly revenues, down from 93.78 percent for the same period last year. This has led to an improvement of 352 basis points in operating margin to 9.74 percent.
Operating income for the quarter was $5.86 million, compared with $3.41 million in the previous year period.
"It was a very good quarter, both top and bottom line, across all segments of our business," said Paul B. Toms Jr., chairman and chief executive officer. "This is especially gratifying considering summer is traditionally the weakest quarter for our industry."
Operating cash flow drops significantly
Hooker Furniture Corporation has generated cash of $9.02 million from operating activities during the first half, down 49.31 percent or $8.78 million, when compared with the last year period.
The company has spent $1.89 million cash to meet investing activities during the first six months as against cash outgo of $2.58 million in the last year period.
Cash flow from financing activities was almost stable for the quarter at $2.16 million, when compared with the previous year period.
Cash and cash equivalents stood at $43.63 million as on Aug. 02, 2015, up 18.10 percent or $6.69 million from $36.94 million on Aug. 03, 2014.
Working capital increases
Hooker Furniture Corporation has recorded an increase in the working capital over the last year. It stood at $106.27 million as at Aug. 02, 2015, up 10.56 percent or $10.15 million from $96.12 million on Aug. 03, 2014. Current ratio was at 7.43 as on Aug. 02, 2015, down from 7.78 on Aug. 03, 2014.
Cash conversion cycle (CCC) has decreased to 74 days for the quarter from 124 days for the last year period. Days sales outstanding went down to 45 days for the quarter compared with 46 days for the same period last year.
Days inventory outstanding has decreased to 49 days for the quarter compared with 97 days for the previous year period. At the same time, days payable outstanding was almost stable at 19 days for the quarter, when compared with the previous year period.
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