Lights Up on Movie Gallery: Fool by Numbers
By
Motley Fool Contributors
March 19, 2007
|
On March 16, Movie Gallery (Nasdaq: MOVI) released fourth-quarter earnings for the period ended Dec. 31, 2006.
- Rental revenue was down 5.7%, but product sales were up 10.8%. Unfortunately, product sales couldn't push total revenue growth into positive territory.
- While gross margins declined during the quarter, operating margins, adjusted for impairment charges, rose 70 basis points.
- The company has acquired all the assets of MovieBeam for cash consideration in the first quarter of fiscal 2007.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006
|
Q4 2005
|
Change
|
|
Sales
|
$663.3
|
$676.4
|
(1.9%)
|
|
Net Profit
|
($15.1)
|
($546.5)
|
N/A
|
|
EPS
|
($0.47)
|
($17.34)
|
N/A
|
|
Diluted Shares
|
31.8
|
31.5
|
0.9%
|
Get back to basics with the income statement.
Margin Checkup
|
Q4 2006
|
Q4 2005
|
Change*
|
|
Gross Margin
|
55.9%
|
57.5%
|
(1.5)
|
|
Operating Margin
|
2.8%
|
2.1%**
|
0.7
|
|
Net Margin
|
(2.3%)
|
(80.8%)
|
N/M
|
*Expressed in percentage points.
**Before impairment charges.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
Q4 2006
|
Q4 2005
|
Change
|
|
Cash + ST Invest.
|
$33.0
|
$136.5
|
(75.8%)
|
|
Inventory*
|
$480.6
|
$508.1
|
(5.4%)
|
*Includes rental and merchandize inventories.
|
Liabilities
|
Q4 2006
|
Q4 2005
|
Change
|
|
Accounts Payable
|
$86.4
|
$237.0
|
(63.6%)
|
|
Long-Term Debt
|
$1,087.9
|
$1,083.1
|
0.4%
|
The balance sheet reflects the company's health.
Cash Flow Highlights
|
2006
|
2005
|
Change
|
|
Cash From Ops.
|
($9.8)
|
$132.1
|
N/A
|
|
Capital Expenditures
|
$19.6
|
$58.2
|
(66.3%)
|
|
Free Cash Flow
|
($29.4)
|
$73.9
|
N/A
|
Free cash flow is a Fool's best friend.
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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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