So-So, Sonic: Fool by Numbers
On June 21, drive-in fast-food chain Sonic (Nasdaq: SONC) released fourth-quarter earnings for the period ended May 31.
- Net profits are down, but per-share figures are up. The difference maker? A massive share buyback program.
- While operational margins were stable enough, the net margin suffered from interest payments on a much higher debt load than last year.
- Sonic's financial data comes in an unusual format. There's plenty of juicy, detailed information about in-house and franchise operations -- the average franchisee generated $34,000 more in sales than the average company-owned location -- but the balance statement is rudimentary and there's no cash flow information.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2007
|
Q3 2006
|
Change
|
|
Sales
|
$209.9
|
$186.5
|
12.6%
|
|
Net Profit
|
$20.6
|
$23.8
|
(13.4%)
|
|
EPS
|
$0.31
|
$0.27
|
14.8%
|
|
Diluted Shares
|
67.4
|
89.0
|
(24.3%)
|
Get back to basics with the income statement.
Margin Checkup
|
Q3 2007
|
Q3 2006
|
Change*
|
|
Gross Margin
|
53.4%
|
53.5%
|
(0.1)
|
|
Operating Margin
|
20.6%
|
21%
|
(0.3)
|
|
Net Margin
|
9.8%
|
12.8%
|
(2.9)
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets & Liabilities
|
Q3 2007
|
Q3 2006
|
Change
|
|
Current Assets
|
$91.9
|
$42.5
|
116.1%
|
|
Current Liabilities
|
$92.7
|
$78.1
|
18.8%
|
|
Long-term Liabilities
|
$711.9
|
$168.2
|
323.2%
|
The balance sheet reflects the company's health. The company only gave us a condensed version this time, and we'll have to wait for the 10-K filing for the full details.
Cash Flow Highlights
Free cash flow is a Fool's best friend. Sonic didn't let us see our pal this time, though.
Related Foolishness:
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.
At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here.
DocumentId: 530081, ~/articles/articlehandler.aspx, 7/6/2008 10:27:16 AM, No ticker
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