The Whole Story of Wild Oats: Fool by Numbers

Last Thursday, Wild Oats (Nasdaq: OATS  ) released earnings for the first quarter ended March 31.

• GAAP earnings included $3.5 million in one-time charges for a pending merger with Whole Foods Market (Nasdaq: WFMI  ) . Excluding the expense, Wild Oats booked $0.17 in per-share profit, a 70% year-over-year increase.

• Those gains came with a cost of a gross margin decline of 53 basis points. Management attributed the fall to higher occupancy costs, a stockpile of lower-margin items, and additional spending for promotions.

• Investors, meanwhile, remain unimpressed. The 117 pros and amateurs participating in our Motley Fool CAPS investor intelligence database give Wild Oats just one of five stars.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$309,942

$298,357

3.9%

Net Profit

$1,624

$2,885

(43.7%)

EPS

$0.05

$0.10

(50%)

Diluted Shares

 30,342

 29,542

2.7%

Get back to basics with the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

32.00%

32.53%

(0.53)

Operating Margin

1.03%

1.46%

(0.43)

Net Margin

0.52%

0.97%

(0.45)

*Expressed in percentage points

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$42,817

$60,516

(29.2%)

Accounts Rec.

$4,740

$3,291

44%

Inventory

$69,717

$65,700

6.1%

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$57,622

$59,581

(3.3%)

Long-Term Debt

$147,596

$148,064

(0.3%)

The balance sheet reflects the company's health.

Cash Flow Checkup

Q1 2007

Q1 2006

Change

Cash From Ops.

$5,843

$13,181

(55.7%)

Capital Expenditures

$11,967

$5,759

107.8%

Free Cash Flow

($6,124)

$7,422

N/A

Free cash flow is a Fool's best friend.

Related Foolishness:

• There's a wild ride still ahead for Wild Oats.

• Could Wild Oats be the worst stock for 2007?

• Organic distributor United Natural Foods (Nasdaq: UNFI  ) might be stale.

Whole Foods is a Stock Advisor pick. Click here to get access to get 30 days of free access to the entire portfolio, which is beating the market by more than 39%.

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 6,458 out of more than 28,400 ranked players in CAPS, likes his food and his stocks organically delicious. 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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