Nathan's Spicy Results: Fool by Numbers

On Monday, Nathan's Famous (Nasdaq: NATH  ) released Q1 2007 earnings for the period ended June 30.

  • I'm tempted to write that Nathan's 20% profit growth smashed Street estimates, except that no analysts follow the hot dog maker.
  • Per-share earnings grew even more thanks to a lower share count and higher sales and improved margins in the branded products business, which accounted for 41% of sales during the quarter.
  • Since 2001, Nathan's has repurchased 1.89 million shares for $7.16 million. That's an average price of $3.78 a stub, or just 29% of yesterday's close. (Talk about creating value for shareholders.)

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q1 2007

Q1 2006

Change

Sales

N/A

$12,244

$11,382

7.6%

Net Profit

--

$1,396

$1,169

19.4%

EPS

N/A

$0.22

$0.18

22.2%

Diluted Shares

6,316

6,474

(2.4%)



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

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin**

42.19%

43.59%

(1.40)

Operating Margin

17.28%

15.09%

2.19

Net Margin

11.40%

10.27%

1.13

* Expressed in percentage points
** Defined as sales less cost of food and beverage, without revenue from franchisees.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$20,379

$16,093

26.6%

Accounts Rec.

$5,727

$4,924

16.3%

Inventory

$1,250

$690

81.2%



Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$2,786

$2,718

2.5%

Long-Term Debt

$0

$649

(100.0%)



Learn the ways of the balance sheet.

Cash Flow Checkup

Q1 2007

Q1 2006

Change

Cash From Ops.

$518

$953

(45.6%)

Capital Expenditures

$147

$151

(2.6%)

Free Cash Flow

$371

$802

(53.7%)



Find out why Fools always follow the money.

Related companies:

  • Burger King (NYSE: BKC  )
  • McDonald's (NYSE: MCD  )
  • Wendy's (NYSE: WEN  )
  • Yum! Brands (NYSE: YUM  )

Related Foolishness:

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 Tim Beyers didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out which stocks he owns by checking Tim's Fool profile. The Motley Fool has an ironclad disclosure policy.


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