On May 8, pizza producer Papa John's International
- Apparently having better ingredients does make better pizza, as Papa John's was the only national pizza chain to post positive domestic comparable sales during the quarter.
- Like the rest of the retail world, the company's margins were impacted by the minimum-wage increases in certain states.
- Consolidation of the company's franchisee-owned cheese purchasing entity, BIBP Commodities, had an unfavorable effect on cash flows from operations.
- Come rate Papa John's and other pizza eateries like Domino's
(NYSE:DPZ) in the Motley Fool CAPS free investment community.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$260.6 |
$242.3 |
7.5% |
|
Net Profit |
$13.2 |
$16.0 |
(17.8%) |
|
EPS |
$0.43 |
$0.47 |
(8.5%) |
|
Diluted Shares |
30.6 |
34.0 |
(10.1%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
54.1% |
52.1% |
2.0 |
|
Operating Margin |
8.4% |
10.4% |
(2.0) |
|
Net Margin |
5.1% |
6.6% |
(1.6) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$5.7 |
$17.6 |
(67.5%) |
|
Accounts Rec. |
$21.0 |
$21.5 |
(2.5%) |
|
Inventory |
$25.9 |
$22.7 |
13.9% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$24.9 |
$29.4 |
(15.1%) |
|
Long-Term Debt |
$99.5 |
$20.0 |
397.2% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$19.9 |
$26.1 |
(23.9%) |
|
Capital Expenditures |
$9.0 |
$6.1 |
47.8% |
|
Free Cash Flow |
$10.9 |
$20.1 |
(45.7%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
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