Zumiez Zooms Ahead: Fool by Numbers

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On March 14, Zumiez (Nasdaq: ZUMZ) released fourth-quarter earnings for the period ended Feb. 3.

• The company's net sales improved by 49%, including a 12% rise in comparable store sales.
• During the year, Zumiez completed the integration of the Fast Forward acquisition and opened an additional 42 new stores.
• Management forecasts EPS to be in the range of $0.94 to $0.96 per share in 2007, with diluted share count expected to be approximately 29.5 million.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q4 2006	Q4 2005	Change
Sales	$112.4	$75.4	49.0%
Net Profit	$11.3	$6.8	66.7%
EPS	$0.39	$0.23	69.6%
Diluted Shares	29.0	28.8	0.6%

Get back to basics with the income statement.

Margin Checkup

	Q4 2006	Q4 2005	Change*
Gross Margin	39.4%	38.1%	1.3
Operating Margin	16.1%	14.0%	2.1
Net Margin	10.0%	9.0%	1.1

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q4 2006	Q4 2005	Change
Cash + ST Invest.	$52.0	$43.0	20.9%
Accounts Rec.	$5.2	$3.7	39.4%
Inventory	$42.2	$30.6	38.0%

Liabilities	Q4 2006	Q4 2005	Change
Accounts Payable	$24.2	$18.6	29.8%

The balance sheet reflects the company's health.

Cash Flow Highlights

	2006	2005	Change
Cash From Ops.	$29.9	$21.1	42.0%
Capital Expenditures*	$17.9	$13.4	33.7%
Free Cash Flow	$12.0	$7.7	56.3%

*Capital expenditures include leasehold improvements

Free cash flow is a Fool's best friend.

Related Foolishness:

• Zoom, Zoom, Zumiez
• 2006 in Review: Zumiez
• The Best Small Cap for 2007: Volcom

Zumiez is a Hidden Gems newsletter recommendation. To find out why, all you need to do is sign up for your free 30-day trial.

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.