Tuesday, 13 December 2011
ROOMSTORE, INC.
MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Company name
ROOMSTORE, INC.
Identification number If you want to know more, ASKMORE modeFinance’s credit report.
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United States of America
ZIP code and city
23238 - RICHMOND
Address
12501, Patterson Avenue +1 804 784 7600 www.roomstore.com
Legal form Account
Consolidated
Incorporation date
1996
NACE 2 Sector
4759 - Retail sale of furniture, lighting equipment and other household articles in specialised stores
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Country
Listed Status
Active
MORE Credit limit
1,500,000 e
plans 2 types of reports:
Turnover (th e) Basic
Rating
Plus TM
ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making. It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis. This report type is ideally suited for decisions on transactions with each level of credit risk. TM
28/02/2011
28/02/2010
28/02/2009
233,787
234,437
259,702
CCC
B
B
16.00%
3.80%
3.80%
100%
100%
100%
Leverage ratio
3.95
2.04
1.53
Total asset/Total liabilties
1.25
1.49
1.65
Current Ratio
1.36
1.51
1.33
Quick Ratio
0.29
0.33
0.28
Return on investement ROI (%)
-13.02
-10.92
-19.06
Return on equity ROE (%)
-73.67
-26.48
-36.75
3.80
3.53
3.46
-0.09
-0.05
-0.03
0.44
0.46
0.43
-12.16
-19.32
-39.53
Probability of default Confidence Level Solvency ratios
Liquidity ratios
Profitability and economic equilibrium ratios
Asset turnover Interest paid weight Gross Profit/Operating revenue Interest Coverage ratios EBIT interest coverage ratio
Analysis and trend of financial strength modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM
key askMORETM is a registered mark of modeFinanceTM
MORE Credit Rating
D not available
non return
C
CC
extremly pathological pathological
CCC
B
BB
BBB
A
AA
AAA
high danger
weak
sufficient
adequate
good
very strong
extremely strong
ROOMSTORE, INC.
Tuesday, 13 December 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Sector Analysis Company
Healthy
Balanced
Vulnerable
Risky
Leverage ratio
3.95
0.70
2.05
4.50
-2.06
Total asset/Total liabilties
1.25
2.43
1.49
1.19
0.97
Current Ratio
1.36
2.24
1.42
1.11
0.83
Quick Ratio
0.29
1.41
0.74
0.43
0.27
Return on investement ROI (%)
-13.02
17.09
5.60
0.62
-13.83
Return on equity ROE (%)
-73.67
20.49
8.83
-6.03
-118.50
Solvency ratios
Liquidity ratios
Profitability and economic equilibrium ratios
Asset turnover
3.80
2.13
1.97
1.75
2.01
Interest paid weight
-0.09
0.01
0.14
0.13
-0.11
Gross Profit/Operating revenue
0.44
0.36
0.36
0.32
0.35
-12.16
84.90
4.83
-0.05
-7.36
Days Sales Of Inventory (DIO)
50
46
62
78
77
Days Sales Outstanding (DSO)
5
9
11
12
10
Days Payable Outstanding (DPO)
17
19
33
48
59
Cash Conversion Cycle (DIO + DSO - DPO)
38
42
44
45
37
-
347
1,117
776
228
CCC
A
BB
B
CC
Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days)
Numer of analyzed companies (Average) Rating
The sector has been chosen according to: international companies in the sector NACE 2 4759 with financial data of year 2009.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ROOMSTORE, INC.
Tuesday, 13 December 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Sector Analysis - Graphs
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
ROOMSTORE, INC.
Tuesday, 13 December 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Balance Sheet BALANCE SHEET (th e)
28/02/2011
28/02/2010
28/02/2009
Accounting practice
Local GAAP
Local GAAP
Local GAAP
0.72286
0.73692
0.79089
Total assets
61,499
66,483
74,956
Fixed assets
20,877
24,095
28,055
0
0
0
16,652
21,063
25,267
Exchange rate USD - EUR
Intangible fixed assets Tangible fixed assets
4,224
3,032
2,788
40,622
42,388
46,901
31,882
33,165
36,946
Debtors
3,008
2,909
1,854
Other current assets
5,732
6,314
8,100
1,710
540
104
12,413
21,836
29,640
71
72
78
Other shareholders funds
12,342
21,763
29,563
Total liabilities
49,086
44,647
45,316
Non current liabilities
19,127
16,542
10,165
Long term debt
14,062
9,928
2,740
5,065
6,614
7,424
29,960
28,105
35,151 6,384
Other fixed assets Current assets Stocks
Cash & cash equivalent Shareholders funds Capital
Other non-current liabilities Current liabilities
60
57
Creditors
10,627
8,472
9,567
Other current liabilities
19,273
19,577
19,200
61,499
66,483
74,956
28/02/2011
28/02/2010
28/02/2009
Loans
Total shareh. funds & liab. NET DEBT (th e) Short term debts Long term debt Cash & cash equivalent Net debt
60
57
6,384
14,062
9,928
2,740
1,710
540
104
12,412
9,444
9,021
28/02/2011
28/02/2010
28/02/2009
Working capital
24,263
27,602
29,233
Net Current Assets
10,663
14,282
11,749
28/02/2011
28/02/2010
28/02/2009
Days Sales Of Inventory (DIO)
50
52
Days Sales Outstanding (DSO)
5
5
3
Days Payable Outstanding (DPO)
17
13
13
Cash Conversion Cycle (DIO + DSO - DPO)
38
44
42
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
52
ROOMSTORE, INC.
Tuesday, 13 December 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Income Statement INCOME STATEMENT (th e)
28/02/2011
28/02/2010
28/02/2009
Accounting practice
Local GAAP
Local GAAP
Local GAAP
Exchange rate USD - EUR
0.72286
0.73692
0.79089
Sales
233,787
234,437
259,702
-0.3
-9.7
-
0
0
0
Operating revenue / turnover
233,787
234,437
259,702
Total operating costs
242,249
242,050
274,210
Costs growth (%)
0
-12
-
Service costs
-
-
-
Material costs
-
-
-
Costs of employees
-
-
-
-5,233
-4,106
-6,235
3,229
3,507
8,273
-8,462
-7,613
-14,508
-243
-42
-144
-
1
16
243
43
160
Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized
EBITDA Depreciation EBIT Financial P/L Financial revenue Financial expenses Interest paid P/L before tax Extr. and other P/L Extr. and other revenue Extr. and other expenses P/L before tax + Extr. and other P/L Taxation P/L for period
696
394
367
-8,705
-7,655
-14,652
-196
-154
188
-
-
-
-
-
-
-8,901
-7,809
-14,464
244
-2,027
-3,572
-9,145
-5,782
-10,892
28/02/2011
28/02/2010
28/02/2009
Costs of Good Sold
130,419
127,589
147,092
Gross Profit
103,368
106,848
112,610
Other Operating Expenses
111,830
114,461
127,118
28/02/2011
28/02/2010
28/02/2009
Cash flow Added value
-5,916
-2,275
-2,619
-
-
-
28/02/2011 Number of employees
1,456
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
28/02/2010
28/02/2009
1,591
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
-
ROOMSTORE, INC.
Tuesday, 13 December 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Evolutions and trends
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
ROOMSTORE, INC.
Tuesday, 13 December 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Qualitative information Full overview
RoomStore, Inc. is a leading furniture retailer headquartered in Richmond, Virginia. Formerly known as HMY RoomStore, Inc., the company was founded by a renowned furniture family in 1922. Roomstore offers a wide selection of home furnishings in complete room packages at value - oriented prices. Since 1992, the company has grown to more than 60 stores in Virginia, Maryland, Pennsylvania, North and South Carolina, Alabama, Florida, Texas and Louisiana offering customers the best furniture and accessory values available. RoomStore list its available merchandise on Furniture. com and use Furniture. com as its e - commerce platform provider for RoomStore. com. Furniture. com will also provide RoomStore with online customer service support and distribute point - of - sale materials to stores over Furniture. com‘s intranet.
History
Formerly known as HMY RoomStore, Inc; Founded by a renowned furniture family.
Primary business line
Furniture retailer.
Secondary business line
Not available.
Main activity
Retail.
Secondary activity
Not available.
Main products and services
Not available.
Size estimate
A leading furniture retailer.
Strategy, organization and policy
Not available.
Strategic alliances
Not available.
Membership of a network
Not available.
Main brand names
Not available.
Main domestic country
United States Of America.
Main foreign countries or regions
Not available.
Main production sites
Not available.
Main distribution sites
Not available.
Main sales representation sites
Not available.
Main customers
Not available.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ROOMSTORE, INC.
Tuesday, 13 December 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Auditor/Advisor/Bank name
type
address
BDO USA, LLP
Auditor
-
Board name
date of birth
nationality
function
Mr Robert C Shaffner Mr Curtis C Kimbrell Mr Ronald A Kaplan Mr Steven L Gidumal
-
-
-
Sharehoders (the first twenty shareholders ordered by Direct %)) Rating:
HEILIG - MEYERS MASTER TRUST Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US -
Operating revenue (MIL $) Total Assets (MIL $)
Rating:
QVT FINANCIAL GP LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
Number of Employees Information date
2.20 -
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
TM
2011/05
Rating:
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com
2010/08
-
9.59
KIMBRELL CURTIS C. Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
-
US 14.90 -
-
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
2010/08
ROOMSTORE, INC.
Tuesday, 13 December 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:
MATTRESS DISCOUNTERS GROUP, LLC
-
Country ISO code
US
Operating revenue (MIL $)
NACE Rev. 2, Core code Direct % Total %
MO -
Total Assets (MIL $) Number of Employees Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
5 160 2011/08
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ROOMSTORE, INC.
Tuesday, 13 December 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
ASKMORE rating guide General vision
A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors. The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements. The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm. The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge. The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating. This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ROOMSTORE, INC.
Tuesday, 13 December 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating scale Rating class
Rating macro class
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
AAA
AA
Assessment
economic and financial flow and fund equilibrium. Healthy
The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight. The company has a high solvency. The company is however more susceptible to the adverse effects of changes in
A
circumstances and economic conditions than companies in higher rated categories. Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.
BBB Balanced
A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.
BB
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
B
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments. Vulnerable
CCC
A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.
CC
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase. Risky
C
The company shows considerable pathological situations. commitments is very low.
D
The company has not any longer the capacity to meet its financial commitments.
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The company’s capacity to meet its financial
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ROOMSTORE, INC.
Tuesday, 13 December 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Fundamental Credit Rating Ratios Analysis area
Ratio
Assessment This measures the level of total liabilities of the company in comparison
Leverage ratio
with equity.
Solvency ratios
Financial ratios
Assets to debt
This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.
Fixed Assets coverage ratio
This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.
Current ratio
This measures whether a company has sufficient short-term assets to cover its short-term liabilities.
Liquidity ratios This compares current liabilities only to those assets that can be readily
Quick ratio
turned into cash.
Return on Investement(ROI)
This measures the profitability of company investments without regard to the way the investment is financed.
Return on Equity(ROE)
This measures the profitability of the equity.
Asset turnover
This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.
Profit margin
This indicates the profitability of sales.
Interest Paid coverage
This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.
Profitability and economic ratios
Interest coverage ratio
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ROOMSTORE, INC.
Tuesday, 13 December 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit
MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:
• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).
The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.
Probability of default e Confidence Level
In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default. As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default. The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:
Confidence =
P Available Information P Total Information
The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company. For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ROOMSTORE, INC.
Tuesday, 13 December 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Notes and disclaimer NOTES
The present analysis was based on the company available financial statements as provided by Bureau Van Dijk Electronic Publishing - ORBIS database (lack of both Notes to financial statements and Report on operations).
DISCLAIMER
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
Contacts Company
modeFinance
Products Where
MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com +39 040 3755337
Info web Phone
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741