Short Circuit City: Fool by Numbers

On Dec. 19, electronics retailer CircuitCity (NYSE: CC  ) released fiscal third-quarter 2006 earnings for the period ended Nov. 30. Here are the quick-and-dirty details for the quarter.

  • Sales grew 6.9% to $3.1 billion, and same-store sales grew 5.1%.
  • Circuit City posted an unexpected bottom-line loss as gross margin fell on account of cutthroat price competition for flat-panel TVs, PCs, and entertainment software. SG&A also increased from higher information-technology investments.
  • For 2007, management is projecting further sales growth, but continued gross margin pressure, as competition keeps prices low in key product areas.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$3,102,299

$2,901,385

6.9%

Net Profit

($15,990)

$10,142

N/A

EPS

($0.09)

$0.06

N/A

Diluted Shares

171,063

177,509

(3.6%)

*Three months ended November 30, 2006 and 2005

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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

22.2%

24.1%

(1.9)

Operating Margin

(1%)

0.5%

(1.5)

Net Margin

(0.5%)

0.4%

(0.9)

*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.

$897,887

$550,276

63.2%

Accounts Rec.

$420,876

$298,182

41.1%

Inventory

$2,531,486

$2,676,695

(5.4%)



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$2,283,227

$1,962,030

16.4%

Long-Term Debt

$47,479

$38,410

23.6%



Learn the ways of the balance sheet.

Cash Flow Highlights
Fools will have to wait until Circuit City files its 10-Q for juicy cash flow details.

Find out why Fools always follow the money.

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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.

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


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