Timberland Tied Up: Fool by Numbers

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On Oct. 27, Timberland (NYSE: TBL) released its third-quarter earnings for the period ended Sept. 30.

• Revenues were below the estimate at $503 million, while EPS beat the estimate by 9.3%.
• Revenues decreased because of declines in boots and children's sales, which offset the gains made by the company's new brands.
• Because capital spending increased by 39.3%, the company experienced a larger outflow of free cash.

(Figures in millions, except per-share data)

Income Statement Highlights

	Avg. Est.	Q3 2006	Q3 2005	Change
Sales	$507	$503	$506	(0.6%)
Net Profit	--	$52	$69	(25.0%)
EPS	$0.75	$0.82	$1.02	(19.6%)
Diluted Shares	--	63	68	(6.8%)

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

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	47.05%	48.89%	(1.84)
Operating Margin	16.06%	20.78%	(4.72)
Net Margin	10.31%	13.67%	(3.36)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$63	$123	(48.5%)
Accounts Rec.	$330	$298	10.8%
Inventory	$251	$243	3.3%

Liabilities	Q3 2006	Q3 2005	Change
Accounts Payable	$127	$126	1.4%

Learn the ways of the balance sheet.

Cash Flow Highlights

	YTD 2006	YTD 2005	Change
Cash From Ops.	($101)	($58)	N/A
Capital Expenditures	$22	$16	39.3%
Free Cash Flow	($123)	($73)	N/A

Find out why Fools always follow the money.

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• Nike (NYSE: NKE)
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Related Foolishness:

• That Squish in Timberland
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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 checkFool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.