On Feb. 22, Dollar Tree (NASDAQ:DLTR) released full-year 2005 earnings for the period ending Jan. 28, 2006.

  • Net profit fell 3.5% but EPS met analyst estimates.
  • Operating and gross margins both took hits, as expected.
  • Inventory management improvements juiced operating cash flow by 36%.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

FY 2005

FY 2004

% Change

Sales

$3,390

$3,394

$3,126

+8.6%

Net Profit

--

$174

$180

(3.5%)

EPS

$1.60

$1.60

$1.58

+1.3%



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

Margin Checkup

FY 2005

FY 2004

Change

Gross Margin

34.54%

35.59%

(1.05%)

Op. Margin

8.35%

9.39%

(1.05%)

Net Margin

5.12%

5.77%

(0.64%)



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2005

Q4 2004

% Change

Cash + ST Invest.

$340

$318

+6.9%

Inventory

$577

$615

(6.3%)

Accounts Rec.

No Data

No Data

No Data



Liabilities

Q4 2005

Q4 2004

% Change

Long-Term Debt

$250

$250

0.0%

Accounts Pay.

$136

$124

+9.1%



Inventories at work.

Cash Flow Highlights

FY 2005

FY 2004

% Change

Cash From Ops.

$377

$276

+36.3%

Capital Expend.

$139

$182

(23.4%)

Free Cash Flow

$238

$95

+150.8%



Related Companies:

  • 99 Cents Only (NYSE:NDN)
  • Dollar General (NYSE:DG)
  • Family Dollar (NYSE:FDO)
  • Target (NYSE:TGT)
  • Wal-Mart (NYSE:WMT)

Related Foolishness:

Dollar Tree is a Motley Fool Inside Value pick. Family Dollar is a Motley Fool Stock Advisor selection.

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, Fool analyst Andy Cross did not own shares in any company mentioned. Fool rules are here.