Domino's Rings the Bell: Fool by Numbers

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On May 2, Domino's Pizza (NYSE: DPZ) released first-quarter earnings for the period ended March 25.

• Recapitalization costs took a toll on earnings, as they dropped 67.9% from the 2006 first quarter.
• While management is still working on improving domestic sales, same-store sales fell 2.9%.
• The company declared a special dividend of $13.5 per share during the quarter.
• Motley Fool CAPS investors seem bearish on the pizza industry; they rate Domino's a lonely one-star stock. Competitor Papa John's (Nasdaq: PZZA) comes in at two stars.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q1 2007	Q1 2006	Change
Sales	$339.3	$347.7	(2.4%)
Net Profit	$8.4	$26.2	(67.9%)
EPS	$0.13	$0.39	(66.7%)
Diluted Shares	64.1	67.7	(5.3%)

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

Margin Checkup

	Q1 2007	Q1 2006	Change*
Gross Margin	26.8%	27.1%	(0.3)
Operating Margin	15.0%	15.5%	(0.6)
Net Margin	2.5%	7.5%	(5.1)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q1 2007	Q1 2006	Change
Cash + ST Invest.	$67.1	$16.4	309.9%
Accounts Rec.	$63.0	$70.7	(10.9%)
Inventory	$21.3	$19.7	7.9%

Liabilities	Q1 2007	Q1 2006	Change
Accounts Payable	$55.2	$51.0	8.2%
Long-Term Debt	$785.1	$800.9	(2.0%)

Learn the ways of the balance sheet.

Cash Flow Highlights

	Q1 2007	Q1 2006	Change
Cash From Ops.	$6.9	$28.7	(75.9%)
Capital Expenditures	$3.6	$4.2	(14.3%)
Free Cash Flow	$3.3	$24.5	(86.4%)

Free cash flow is a Fool's best friend

Related Foolishness:

• Domino's Doesn't Deliver
• A Funky New Topping at Domino's
• Yum! Looks Appetizing

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.