Recall Doesn't Panic PetSmart: Fool by Numbers (PETM)

Recall Doesn't Panic PetSmart: Fool by Numbers

By Motley Fool Contributors | More Articles
May 17, 2007 | Comments (0)

On May 16, PetSmart (Nasdaq: PETM ) released first-quarter earnings for the period ended April 29.

Despite the recent pet-food recalls, sales continued to grow, increasing 9.9%.
Profits surged a whopping 160%, with the help of $0.47 gain from the company's sale of its portion of MMI Holdings, the third-party operator of its veterinary hospitals.
The discontinuation of State Line Tack, a line of equestrian supplies, cost $0.03 per share and resulted in lower gross and operating margins.

(Figures in millions, except per-share data.)

Income Statement Highlights

	Q1 2007	Q1 2006	Change
Sales	$1,111.6	$1,011.5	9.9%
Net Profit	$106.7	$41.8	155.5%
EPS	$0.78	$0.30	160%
Diluted Shares	136.7	141.1	(3.1%)

Get back to basics with the income statement.

Margin Checkup

Q1 2007	Q1 2006	Change*
30.5%	30.7%	(0.2)
6.9%	7.4%	(0.5)
9.6%	4.1%	5.5

*Expressed in percentage points

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q1 2007	Q1 2006	Change
Cash + ST Invest.	$283.0	$345.9	(18.2%)
Accounts Rec.	$57.4	$31.7	81.2%
Inventory	$461.7	$405.3	13.9%

Liabilities	Q1 2007	Q1 2006	Change
Accounts Payable	$187.5	$167.8	11.8%
Long-Term	$436.6	$384.3	13.6%

* reflects obligations.

The balance sheet reflects the company's health.

Cash Flow Highlights

No free cash flow statement? Bad PetSmart! Bad!

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.

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