Timberland Goes Timber: Fool by Numbers

On Feb. 8, Timberland (NYSE: TBL) released fourth-quarter earnings for the period ended Dec. 31.

• Revenue increased only 4.9%, as boot sales and kids' sales declined.
• Increases in operating expenses hurt margins.
• The company expects to see massive reduction in boot and kids' sales in 2007, in excess of $100 million globally.
• Timberland carries a two-star rating in Motley Fool CAPS, our new community intelligence database.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q4 2006	Q4 2005	Change
Sales	$488.2	$465.3	4.9%
Net Profit	$38.3	$46.9	(18.2%)
EPS	$0.61	$0.71	(14.1%)
Diluted Shares	62.5	65.9	(5.1%)

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

Margin Checkup

	Q4 2006	Q4 2005	Change*
Gross Margin	46.4%	48.2%	(1.8)
Operating Margin	11.8%	15.0%	(3.3)
Net Margin	7.9%	10.1%	(2.2)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q4 2006	Q4 2005	Change
Cash + ST Invest.	$181.7	$213.2	(14.8%)
Accounts Rec.	$204.4	$168.8	21.1%
Inventory	$186.8	$167.1	11.7%

Liabilities	Q4 2006	Q4 2005	Change
Accounts Payable	$110.0	$97.3	13.1%
Long-Term Debt	$0.0	$0.0	N/A

Learn the ways of the balance sheet.

Cash Flow Highlights

	2006	2005	Change
Cash From Ops.	$111.7	$182.3	(38.7%)
Capital Expenditures	$36.6	$26.2	39.8%
Free Cash Flow	$75.1	$156.1	(51.9%)

Find out why Fools always follow the money.

Related Companies:

• Nike (NYSE: NKE)
• Wolverine World Wide (NYSE: WWW)
• Brown Shoe (NYSE: BWS)
• Skechers USA (NYSE: SKX)
• K-Swiss (Nasdaq: KSWS)

Related Foolishness:

• DSW Hits Its Stride
• Wolverine's World of Solid Growth
• Skechers Sketches Out a Nice Quarter

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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.