Marvel's Mostly Mighty: Fool by Numbers

This morning, Stock Advisor selection Marvel Entertainment (NYSE: MVL  ) released earnings for the fiscal year ending Dec. 31.

  • Marvel beat analyst estimates on both the top and bottom lines.
  • Cash from operations was up significantly, too. But $140 million of the increase is attributable to cash prepayments made by Hasbro (NYSE: HAS  ) for a new toy licensing deal, and licensees hoping to cash in on Sony's (NYSE: SNE  ) Spider-Man 3, which hits theaters May 3.
  • What's more, management said higher taxes would affect per-share earnings. Accordingly, the budding studio cut the low end of its full-year EPS guidance to $1.30 a stub.

(Figures in thousands, except per-share data)

Income Statement Highlights

FY 2006

FY 2005

Change

Sales

$351,798

$390,507

(9.9%)

Net Profit

$58,704

$102,819

(42.9%)

EPS

$0.67

$0.97

(30.9%)

Diluted Shares

87,230

106,058

(17.8%)



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

Margin Checkup

FY 2006

FY 2005

Change*

Gross Margin

70.56%

87.06%

(16.50)

Operating Margin

32.00%

43.83%

(11.83)

Net Margin

16.69%

26.33%

(9.64)

* Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

FY 2006

FY 2005

Change

Cash + ST Invest.

$31,945

$39,366

(18.9%)

Accounts Rec.

$59,392

$59,108

0.5%

Inventory

$10,224

$9,177

11.4%



Liabilities

FY 2006

FY 2005

Change

Accounts Payable

$5,112

$3,724

37.3%

Long-Term Debt*

$17,000

$0

N/A

*Credit facility

Learn the ways of the balance sheet.

Cash Flow Checkup

FY 2006

FY 2005

Change

Cash From Ops.

$158,175

$137,737

14.8%

Capital Expenditures

$16,286

$4,289

279.7%

Free Cash Flow

$141,889

$133,448

6.3%



Find out why Fools always follow the money.

Related Foolishness:

Hasbro and Marvel are both Stock Advisor picks. Click here to get access to get 30 days of free access to the entire portfolio, which is beating the market by more than 42%.

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.

Fool contributor Tim Beyers, ranked 1,720 out of more than 23,300 in Motley Fool CAPS, still owns more than 2,000 comic books. He's partial to Iron Man and, geek that he is, will probably wait in line to see ol' Shellhead's film in May 2008. Tim didn't own shares in any of the companies mentioned in this article at the time of publication. All of his portfolio holdings can be found at Tim's Fool profile. His thoughts on Foolishness and investing may be found in his blog. The Motley Fool's disclosure policy always adds up.


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