On July 24, Domino's Pizza (NYSE:DPZ) released earnings for the second quarter ended June 17.
- Drivers were busy last quarter, as sales grew a moderate 3.8%. The improvement came as a result of strong same-store sales increases across the board and new store openings in the international segment.
- The company is recapitalizing itself, and those expenses ate up profits.
- During the recapitalization process, the company rewarded shareholders with a $13.50 per-share dividend. Did the Income Investor team take notice?
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change | |
|---|---|---|---|
|
Sales |
$340.3 |
$327.7 |
3.8% |
|
Net Profit |
$2.3 |
$24.5 |
(90.5%) |
|
EPS |
$0.04 |
$0.39 |
(89.7%) |
|
Diluted Shares |
64.7 |
63.3 |
2.2% |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
27.0% |
27.1% |
(0.1) |
|
Operating Margin |
12.7% |
14.2% |
(1.4) |
|
Net Margin |
0.7% |
7.5% |
(6.8) |
*Expressed in percentage points
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$93.3 |
$23.7 |
293.5% |
|
Accounts Rec. |
$69.3 |
$69.2 |
0.1% |
|
Inventory |
$21.6 |
$20.2 |
6.9% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$54.6 |
$52.3 |
4.4% |
|
Long-Term Debt |
$1,710.0 |
$788.4 |
116.9% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$24.2 |
$53.9 |
(55.1%) |
|
Capital Expenditures |
$8.7 |
$9.4 |
(7.6%) |
|
Free Cash Flow |
$15.5 |
$44.5 |
(65.2%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Panned Pizza at Domino's
- A Funky New Topping at Domino's
- Fool on the Street: Grilling Darden Restaurants
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