A Disconnected Circuit City: Fool by Numbers
On June 20, Circuit City Stores (NYSE: CC) released first-quarter earnings for the period ended May 31.
- While comps rose in the double digits for notebook computers, it wasn't enough to offset the declines in most of the other product categories. Overall, comparable sales declined 5.6%.
- Pricing issues in the flat-panel TV category largely contributed to the $0.33-per-share loss.
- Margins dipped across the board, because of the decline in warranty sales and a sales mix that shifted toward lower-margin PC hardware.
- Because of expected volatility during its restructuring process, management withdrew its fiscal guidance for 2008.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2008
|
Q1 2007
|
Change
|
|
Sales
|
$2,485.5
|
$2,596.6
|
(4.3%)
|
|
Net Profit
|
($54.6)
|
$6.4
|
N/A
|
|
EPS
|
($0.33)
|
$0.04
|
N/A
|
|
Diluted Shares
|
165.8
|
176.3
|
(5.9%)
|
Get back to basics with the income statement.
Margin Checkup
|
Q1 2008
|
Q1 2007
|
Change*
|
|
Gross Margin
|
22.5%
|
24.5%
|
(1.9)
|
|
Operating Margin
|
(3.6%)
|
0.1%
|
(3.6)
|
|
Net Margin
|
(2.2%)
|
0.3%
|
(2.5)
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
Q1 2008
|
Q1 2007
|
Change
|
|
Cash + ST Invest.
|
$364.1
|
$634.3
|
(42.6%)
|
|
Accounts Rec.
|
$342.2
|
$211.6
|
61.8%
|
|
Inventory
|
$1,745.9
|
$1,931.4
|
(9.6%)
|
|
Liabilities
|
Q1 2008
|
Q1 2007
|
Change
|
|
Accounts Payable
|
$923.0
|
$995.6
|
(7.3%)
|
|
Long-Term Debt
|
$49
|
$50
|
(2.1%)
|
The balance sheet reflects the company's health.
Cash Flow Highlights
You can't watch TV without a remote, and you can't do your due diligence without a cash flow statement.
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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: 530025, ~/articles/articlehandler.aspx, 7/6/2008 10:58:11 AM, No ticker
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