On Feb. 24, Citizens Communications (NYSE:CZN) released Q4 2005 earnings for the period ending Dec. 31.

  • Revenue increased 3%, beating estimates.
  • Gross margins fell a bit, but operating margins grew 5 percentage points.
  • Income from investment gains boosted net income.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q4 2005

Q4 2004

% Change

Sales

$548,700

$556,112

$539,127

3.2

Net Profit

--

$76,781

$16,780

357.6

EPS

$0.14

$0.23

$0.05

360

Get back to basics with a look at the income statement.

Margin Checkup

Q4 2005

Q4 2004

% Change

Gross Margin

91.06%

91.28%

(0.22)

Op. Margin

31.15%

26.41%

4.73

Net Margin

13.81%

3.11%

10.69

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2005

Q4 2004

% Change

Cash+ ST Invest.

$265,775

$163,759

62.3

Inventory

$ --

$ --

N/A

Accounts Rec.*

$276,320

$282,999

(2.4)

* Includes A/R and other non-cash current assets

Liabilities

Q4 2005

Q4 2004

% Change

Long-Term Debt

$3,999,376

$4,266,998

(6.3)

Accounts Pay. *

$388,908

$410,405

(5.2)

* Includes A/P and other current liabilities, except current portion of long-term debt

Inventories at work.

Cash Flow Highlights*

FY 2005

FY 2004

% Change

Cash From Ops

$844,217

$711,437

18.7

Capital Expend.

$268,459

$275,204

(2.5)

Free Cash Flow

$575,758

$436,233

32

* For all of FY 2005

Related Companies:

  • AT&T (NYSE:T)
  • BellSouth (NYSE:BLS)
  • France Telecom (NYSE:FTE)
  • Qwest Communications (NYSE:Q)
  • Verizon Communications (NYSE:VZ)

Related Foolishness:

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool analyst Andy Cross owned shares in Citizens Communications and AT&T. Fool rules are here.