Sysco Delivers the Goods: Fool by Numbers

On Monday, Jan. 29, Motley Fool Income Investor pick Sysco (NYSE: SYY  ) released second-quarter results for the period ended Dec. 30, 2006. Here are the quick-and-dirty details for the quarter.

• Sales grew 7.5% to $8.6 billion. An inventory accounting adjustment reduced sales growth by 1.1%. Acquisitions contributed 1% to overall growth.
• Total diluted earnings grew 15.2%, as expense controls helped grow the bottom line faster than sales expansion.
• Free cash flow for the first two quarters came in at $226 million, compared to reported net income of $426 million.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q2 2007	Q2 2006	Change
Sales	$8,569	$7,971	7.5%
Net Profit	$237	$204	15.9%
EPS	$0.38	$0.33	15.2%
Diluted Shares	628	627	0.2%

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

Margin Checkup

	Q42 2007	Q2 2006	Change*
Gross Margin	19.30%	19.27%	0.03
Operating Margin	4.85%	4.60%	0.25
Net Margin	2.76%	2.56%	0.20

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q2 2007	Q2 2006	Change
Cash + ST Invest.	$186	$254	(26.8%)
Accounts Rec.	$2,551	$2,360	8.1%
Inventory	$1,718	$1,673	2.7%

Liabilities	Q2 2007	Q2 2006	Change
Accounts Payable	$1,888	$1,813	4.1%
Long-Term Debt	$1,756	$1,828	(3.9%)

Learn the ways of the balance sheet.

Cash Flow Highlights

	YTD 2007	YTD 2006	Change
Cash From Operations	$540	$312	$229
Capital Expenditures	$315	$233	$82
Free Cash Flow	$226	$79	$147

Find out why Fools always follow the money.

Comparable companies:

• United Natural Foods (Nasdaq: UNFI  )
• AMCON Distributing (AMEX: DIT  )
• Vermont Pure Holdings (AMEX: VPS  )
• Performance Food Group Company (Nasdaq: PFGC  )

Related Foolishness:

• Food for Thought at Sysco
• Summarizing Sysco: Fool by Numbers
• Dueling Fools: Cisco vs. SYSCO

Sysco is a Motley Fool Income Investor recommendation. To find other companies offering high-dividend returns, try a free 30-day trial of the newsletter.

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.

Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.