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Motley Fool Contributors
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February 8, 2007
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On Feb. 7, DirecTV (NYSE: DTV ) released fourth-quarter earnings for the period ended Dec. 31.
- Revenues increased by 16.3% on the back of strong growth in average revenue per subscriber, a larger subscriber base in the DirecTV U.S. segment, and a consolidation of Sky Brazil's financial results.
- Net profit increased by 194% because of the capitalization of customer equipment under the lease program, partially offset by higher upgrade and retention costs.
- Operating margin improved by 810 basis points, mainly thanks to a decrease in subscriber acquisition costs as a percentage of sales.
- Free cash flow increased by 318.8% as a result of increase in cash flow partly offset by an increase in capital expenditure.
- In 2006, the company repurchased 184.1 million shares for approximately $2.98 billion.
(Figures in millions, except per-share data)
Income Statement Highlights
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Q4 2006
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Q4 2005
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Change
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Sales
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$4,183.1
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$3,595.5
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16.3%
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Net Profit
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$356.0
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$121.2
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193.7%
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EPS
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$0.29
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$0.09
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222.2%
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Diluted Shares
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1,231.9
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1,397.0
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(11.8%)
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Get back to basics with a look at the income statement.
Margin Checkup
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Q4 2006
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Q4 2005
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Change*
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Gross Margin
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45.8%
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46.4%
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(0.6)
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Operating Margin
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14.2%
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6.1%
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8.1
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Net Margin
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8.5%
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3.4%
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5.1
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*Expressed in percentage points.Margins are the earnings engine. See how they work.
Balance Sheet Highlights
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Assets
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Q4 2006
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Q4 2005
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Change
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Cash + Short-Term Investments
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$2,669.2
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$4,384.5
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(39.1%)
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Accounts Receivable
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$1,345.2
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$1,033.2
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30.2%
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Inventory
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$147.9
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$283.1
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(47.8%)
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Liabilities
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Q4 2006
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Q4 2005
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Change
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Accounts Payable
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$2,815.9
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$2,541.8
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10.8%
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Long-Term Debt
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$3,394.9
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$3,405.3
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(0.3%)
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*Accounts payable includes accrued expenses.Learn the ways of the balance sheet.
Cash Flow Highlights
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YTD 2006
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YTD 2005
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Change
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Cash From Operations
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$3,162.0
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$1,171.9
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169.8%
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Capital Expenditures
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$1,976.1
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$888.7
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122.4%
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Free Cash Flow
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$1,185.9
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$283.2
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318.8%
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Find out why Fools always follow the money.
Related Companies:
- Disney (NYSE: DIS )
- Time Warner (NYSE: TWX )
- EchoStar Communications (Nasdaq: DISH )
Related Foolishness:
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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 check Fool.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.
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