Stanley Furniture Company (STLY) swung to a net loss for the quarter ended Oct. 01, 2016. The company has made a net loss of $2.08 million, or $ 0.15 a share in the quarter, against a net profit of $0.46 million, or $0.03 a share in the last year period. Revenue during the quarter dropped 19.80 percent to $11.04 million from $13.76 million in the previous year period. Gross margin for the quarter contracted 815 basis points over the previous year period to 16.63 percent. Operating margin for the quarter stood at negative 17.87 percent as compared to a positive 4.27 percent for the previous year period.
Operating loss for the quarter was $1.97 million, compared with an operating income of $0.59 million in the previous year period.
"Our wholesale customers clearly see the difficulties we are experiencing getting our overseas operations with Starwood where we expect them to be in order to provide the level of product quality and service they deserve," said Glenn Prillaman, president and chief executive officer. "Our recent performance is disappointing, however the expected value of our new product from both the Stanley and Stone Leigh brands at retail remains of great interest to our customers. Our increasing backlog for new product demonstrates customer confidence in the companys ability to overcome initial road blocks to success with our differentiated overseas strategy."
Operating cash flow turns negativeStanley Furniture CompanyInc has spent $3.18 million cash to meet operating activities during the nine month period as against cash inflow of $2.46 million in the last year period. Cash flow from investing activities was $28.12 million for the nine month period, up 5,236.81 percent or $27.60 million, when compared with the last year period.
The company has spent $24.14 million cash to carry out financing activities during the nine month period as against cash outgo of $4.28 million in the last year period.
Cash and cash equivalents stood at $7.29 million as on Oct. 01, 2016, up 30.77 percent or $1.72 million from $5.58 million on Sep. 26, 2015.
Working capital declines
Stanley Furniture CompanyInc has witnessed a decline in the working capital over the last year. It stood at $27.24 million as at Oct. 01, 2016, down 5.90 percent or $1.71 million from $28.95 million on Sep. 26, 2015. Current ratio was at 4.53 as on Oct. 01, 2016, down from 5.91 on Sep. 26, 2015.
Cash conversion cycle (CCC) has increased to 100 days for the quarter from 97 days for the last year period. Days sales outstanding went down to 21 days for the quarter compared with 22 days for the same period last year.
Days inventory outstanding has increased to 106 days for the quarter compared with 92 days for the previous year period. At the same time, days payable outstanding went up to 26 days for the quarter from 17 for the same period last year.
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