Tim Hortons Terribly Taxed: Fool by Numbers
On May 3, Tim Hortons (NYSE: THI) released first-quarter earnings for the period ended April 1.
- Increases of 6.3% and 4% in same-store sales in Canada and the U.S., respectively, and a 30% increase in franchise fees lifted total revenue 13.9% during the quarter.
- EPS declined 20.5%, as Tim Hortons' effective tax rate changed to 34.6% from 14.8% in 2006.
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Motley Fool CAPS investors give Tim Hortons a three-star rating, showing it more love than its former parent, Wendy's (NYSE: WEN), which has a one-star rating. It also outranks Stock Advisor selection Starbucks (Nasdaq: SBUX) and its two-star rating. Got an opinion? Bring it to CAPS!
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007
|
Q1 2006
|
Change
|
|
Sales
|
$424.6
|
$372.8
|
13.9%
|
|
Net Profit
|
$59.3
|
$63.6
|
(6.8%)
|
|
EPS
|
$0.31
|
$0.39
|
(20.5%)
|
|
Diluted Shares
|
190.6
|
161.8
|
17.8%
|
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007
|
Q1 2006
|
Change*
|
|
Gross Margin
|
41.7%
|
42.6%
|
(0.9)
|
|
Operating Margin
|
22.2%
|
22.3%
|
(0.1)
|
|
Net Margin
|
14%
|
17.1%
|
(3.1)
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
Q1 2007
|
Q1 2006
|
Change
|
|
Cash + ST Invest.
|
$82.9
|
$978.1
|
(91.5%)
|
|
Accounts Rec.
|
$114.2
|
$89.4
|
27.6%
|
|
Inventory
|
$62.0
|
$47.9
|
29.4%
|
|
Liabilities
|
Q1 2007
|
Q1 2006
|
Change
|
|
Accounts Payable
|
$89.1
|
$82.3
|
8.3%
|
|
Long-Term Debt
|
$391.4
|
$392.4
|
(0.3%)
|
The balance sheet reflects the company's health.
Cash Flow Highlights
The absence of a cash flow statement is like the hole in a doughnut: No calories, but no taste, either.
Free cash flow is a Fool's best friend.
Related Foolishness:
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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.
DocumentId: 527343, ~/articles/articlehandler.aspx, 7/20/2008 5:44:58 PM, No ticker
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