Stanley Furniture Company (STLY) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.30 million, or $ 0.02 a share in the quarter, against a net profit of $0.92 million, or $0.06 a share in the last year period.
Revenue during the quarter dropped 28.97 percent to $9.80 million from $13.80 million in the previous year period. Gross margin for the quarter contracted 486 basis points over the previous year period to 20.16 percent. Operating margin for the quarter stood at negative 14.08 percent as compared to a positive 5.17 percent for the previous year period.
Operating loss for the quarter was $1.38 million, compared with an operating income of $0.71 million in the previous year period.
"Our sales declines do not provide a clear picture of the demand for and marketability of product offerings developed and sold to our wholesale customer base over the past eighteen months, nor do they speak to the strength of our diverse retail distribution network waiting for sufficient stock availability of these more marketable goods," said Glenn Prillaman, president and chief executive officer. "The past year’s financials reflect our struggle to capitalize on a strategic manufacturing alliance with an overseas vendor and we have initiated plans to fulfill order backlog through other existing sources with whom we already do business."
Operating cash flow turns negativeStanley Furniture Company has spent $2.59 million cash to meet operating activities during the year as against cash inflow of $4.59 million in the last year. Cash flow from investing activities was $28.12 million for the year, up 5,350.58 percent or $27.61 million, when compared with the last year.
The company has spent $27.80 million cash to carry out financing activities during the year as against cash outgo of $5.47 million in the last year period.
Cash and cash equivalents stood at $4.21 million as on Dec. 31, 2016, down 35.17 percent or $2.28 million from $6.50 million on Dec. 31, 2015.
Working capital declines
Stanley Furniture Company has witnessed a decline in the working capital over the last year. It stood at $23.65 million as at Dec. 31, 2016, down 16.71 percent or $4.74 million from $28.39 million on Dec. 31, 2015. Current ratio was at 3.82 as on Dec. 31, 2016, down from 4.74 on Dec. 31, 2015.
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