Stock Segment: Leggett & Platt's annual revenues grow 3.9%

Leggett on Jan. 26 reported fourth-quarter sales of $1.31 billion, a 2.2 percent decrease compared to the same period in 2005, and earnings per share of 38 cents, including 5 cents in nonrecurring income.

“Fourth-quarter sales and earnings were in line with the expectations we shared in October, even though sales were toward the lower end of our guidance,” President and CEO David Haffner said in the earnings release. “Operationally, we are progressing as expected.”

The Fortune 500 company delivered record full-year revenues of $5.51 billion, an increase of 3.9 percent compared to 2005, and record full-year earnings per share of $1.61, including 5 cents in nonrecurring income.

In its 2007 guidance, Leggett predicts earnings per share between $1.65 and $1.85 with sales growth of about 2 percent, and first-quarter earnings per share of 31 to 35 cents with a sales decrease of about 3 percent compared to the first quarter of 2006.

Haffner said Leggett’s 2006 accomplishments included completing the restructuring that began in 2005, filling several new business development and product development positions, increasing the dividend and repurchasing 3 percent of the company’s outstanding shares.

Leggett completed two acquisitions in the fourth quarter for a total of five during the year. The new properties are expected to add about $75 million to annual revenue.

Shares (NYSE: LEG) closed March 7 at $23.73, compared to a 52-week range of $21.93 to $27.04.

Decorize posts first quarterly profit

Decorize Inc. on Feb. 14 reported its first quarterly operating profit in its fiscal 2007 second-quarter financials.

The seven-year-old home furnishings manufacturer reported second-quarter net income of $52,000, compared to an operating loss of $731,600 for the same period last year. Revenues for the quarter were $4.5 million, up 180 percent compared to the same period a year before.

For the first six months of fiscal 2007, revenues were $7.68 million, an increase of 105 percent from the first half of fiscal 2006. The company had an operating profit of $112,000, compared to an operating loss of $1.04 million a year ago.

Recent changes at Decorize have included the implementation of focus groups at the design level to make sure more of the company’s new products sell well. The company also has established strategic partnerships with a number of national retailers, such as Stein Mart, Wal-Mart and Broyhill Furniture Industries.

Shares (AMEX: DCZ) closed March 7 at 62 cents, compared to a 52-week range of 17 cents to 87 cents.

Jack Henry shares up 7 cents

Monett-based Jack Henry & Associates Inc. Feb. 7 announced a 13 percent increase in net income for the second quarter of fiscal 2007.

For the quarter ended Dec. 31, the financial technology provider’s net income was $27.8 million, or 30 cents per share, compared to $21.6 million, or 23 cents per share, a year before.

Revenue for the quarter was $167.2 million, up from $147.4 million the previous year. Gross profit increased to $73 million from $65.5 million last year.

For the first six months of fiscal 2007, Jack Henry’s revenue increased 12 percent to $317.9 million. Net income increased 20 percent to $49.2 million, or 53 cents per share, while gross profit increased 12 percent to $136.3 million.

Officials say overall increases can be attributed to the more than 350 bank clients that have contracted for Jack Henry’s Remote Deposit Capture, which allows banks’ commercial customers to make paper-check deposits from their offices. Also, Jack Henry acquired Atlanta-based US Banking Alliance in November; US Banking Alliance has since reached 400 clients.

Shares (Nasdaq: JKHY) closed March 7 at $23.05, compared to a 52-week range of $17.40 to $24.67.

Empire earnings exceed expectations

Empire District Electric Co. on Feb. 1 reported an increase of 47 cents per share in 2006 earnings, citing a boost from the company’s new gas services and its purchase of wind energy.

Annual earnings were $39.3 million, or $1.39 per share, compared to $23.8 million, or 92 cents per share, in 2005. Operating revenues increased 13.6 percent to $413.5 million. Analysts estimated $1.17 in per-share earnings on $348.2 million in operating revenues.

Officials attribute the increase to higher electric rates and customer growth, though that was slightly offset by weather conditions. A June acquisition of Kansas City-based Aquila Inc.’s gas operations contributed $25.1 million to revenues.

Empire’s electric fuel and purchased-power costs fell 3.1 percent, partly due to its purchase of wind energy in 2005. However, earnings were negatively affected by 11 cents per share because of the dilutive effect of an additional 3.8 million shares of common stock sold in a June public offering.

Fourth-quarter operating revenues increased $19.8 million, or 50 cents per share, primarily due to Empire’s gas segment. Quarterly earnings were $8.2 million, or 27 cents per share, exceeding analysts’ estimate of 13 cents. Compared to fourth-quarter 2005, earnings were $1.3 million, or 5 cents per share.

Shares (NYSE: EDE) closed March 7 at $23.89, compared to a 52-week range of $20.25 to $26.11.

O’Reilly’s same-store sales increase

O’Reilly Automotive Inc. carried its momentum from 2005 – when it first reached $2 billion in sales – into 2006, which saw an 11.6 percent in sales, the company reported Feb. 27.

Sales increased $238 million to $2.28 billion for the year, including a 3.3 percent increase in same-store sales. Net income was $178.1 million, up 8.4 percent from the $164.3 million the company posted in 2005. Diluted earnings per share increased 6.9 percent to $1.55 versus $1.45 a year ago.

For the fourth quarter, O’Reilly’s $558 million in sales was 8.4 percent higher than the same period in 2005. Net income reached $40.4 million, up 2.1 percent, and diluted earnings per share were 35 cents, unchanged from a year earlier.

“Through a combination of relentless attention to every expense detail and our category management efforts … we were able to produce record operating margins in the midst of very difficult economic conditions,” CEO and Co-President Greg Henslee said in a news release.

Shares (Nasdaq: ORLY) closed March 7 at $32.40, compared to a 52-week range of $27.49 to $38.30.