Yankee Candle Dimmer: Fool by Numbers

On Oct. 25, Yankee Candle (NYSE: YCC  ) released Q3 2006 earnings for the period ended Sept. 30, 2006.

  • Both sales and earnings beat estimates handily .
  • . but that's hardly saying much. Virtually all other metrics were abysmal. Margins were lower across the board, for example. And an earnings-per-share increase of $0.02 was paid for through a buyback of 4 million shares.
  • Perhaps that's why Yankee Candle this morning announced it has accepted a private equity buyout worth $34.75 a share, a 21% premium from yesterday's close.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$149,530

$159,604

$136,500

16.9%

Net Profit

--

$14,901

$15,391

(3.2%)

EPS

$0.27

$0.37

$0.35

5.7%

Diluted Shares

--

40,085

44,223

(9.4%)



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

54.27%

55.77%

(1.50)

Operating Margin

18.13%

19.54%

(1.41)

Net Margin

9.34%

11.28%

(1.94)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$9,756

$9,748

0.0%

Accounts Rec.

$67,366

$56,056

20.2%

Inventory

$87,404

$69,012

26.7%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$20,320

$29,539

(31.2%)

Long-Term Debt

$241,000

$200,000

20.5%



Learn the ways of the balance sheet.

Cash Flow Checkup

Cash flow statement not provided. (What-ever.)

Find out why Fools always follow the money.

Related Companies:

  • Bath & Body Works, owned by Limited Brands (NYSE: LTD  )
  • Blyth (NYSE: BTH  )
  • Lancaster Colony (Nasdaq: LANC  )

Related Foolishness:

Check out any of our suite of investing newsletters with a30-day free trial.

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 checkFool.comfor more of our in-depth discussion of what the numbers mean.

Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out which stocks he owns by checking Tim's Fool profile. The Motley Fool's disclosure policy always adds up.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 516662, ~/Articles/ArticleHandler.aspx, 8/28/2014 11:36:42 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement