DIRECTV's Deluxe Development: Fool by Numbers

On Nov. 8, satellite TV service provider DIRECTV Group (NYSE: DTV  ) released Q3 2006 earnings for the period ended Sept. 30.

  • DIRECTV U.S. added 750,000 net subscribers over the past 12 months, and the total customer count now stands at 15.7 million. That 4.5% subscriber growth translated into a beefy 13% total sales boost, and GAAP earnings went on an absolute tear.
  • The dramatic improvement in operational efficiency came from tight cost control, and more specifically, $455 million of customer acquisition costs compared with $708 million last year. Keeping costs fixed while growing revenues is a great recipe for profits.
  • The company prefers to fuel its business with pure cash and has not taken on any new debt in the past year.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$3,610

$3,667.0

$3,233.2

13.4%

Net Profit

--

$370.2

$94.6

291.3%

EPS

$0.27

$0.30

$0.07

328.6%

Diluted Shares

--

1227.9

1395.5

(12.0%)



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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

48.54%

49.80%

(1.26)

Operating Margin

17.13%

4.84%

12.29

Net Margin

10.10%

2.93%

7.17

*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.

$2,272.1

$4,225.2

(46.2%)

Accounts Rec.

$1,155.5

$889.2

29.9%

Inventory

$167.6

$237.0

(29.3%)



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable + Accrued Exp.

$2,457.1

$2,298.8

6.9%

Long-Term Debt

$3,397.5

$3,408.2

(0.3%)



Learn the ways of the balance sheet.

Cash Flow Highlights

Q3 2006

Q3 2005

Change

Cash From Ops.

$874.5

$373.4

134.2%

Capital Expenditures

$554.8

$182.8

203.5%

Free Cash Flow

$319.7

$190.6

67.7%



Find out why Fools always follow the money.

Related Companies:

  • EchoStar Communications (NYSE: DISH  )
  • Comcast (Nasdaq: CMCSA  )
  • Time Warner (NYSE: TWX  )
  • TiVo (Nasdaq: TIVO  )

Related Foolishness:

Time Warner and TiVo areMotley Fool Stock Advisorrecommendations.Find more great investments with a free 30-day trial to our flagship service, where the Gardner brothers compete and everybody wins.

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.

At the time of publication, Fool contributorAnders Bylund had no position in any company mentioned. Fool rules are here.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 517137, ~/Articles/ArticleHandler.aspx, 10/23/2014 12:33:51 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement