On Thursday, card company American Greetings
- Margins sagged across the board, which usually indicates a problem with the company's pricing power and contract negotiations.
- The company had dramatically lower receivables, but the summer is its slowest sales season every year.
- For a discussion about the income statement and the reverse share dilution, look for the full earnings Take.
(Figures in millions, except per-share data)
Income Statement Highlights
Avg. Est. |
Q2 2007 |
Q2 2006 |
Change |
|
---|---|---|---|---|
Sales |
$360 |
$360.1 |
$385.0 |
(6.5%) |
Net Profit |
-- |
-$10.5 |
$3.2 |
N/A |
EPS |
($0.16) |
($0.18) |
$0.05 |
N/A |
Diluted Shares |
58.1 |
67.9 |
(14.4%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q2 2007 |
Q2 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
51.62% |
54.65% |
(3.03) |
Operating Margin |
(6.79%) |
1.52% |
(8.31) |
Net Margin |
(2.92%) |
0.84% |
(3.76) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$89.1 |
$368.5 |
(75.8%) |
Accounts Rec. |
$86.3 |
$169.9 |
(49.2%) |
Inventory |
$277.5 |
$291.3 |
(4.8%) |
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Accounts Payable |
$122.2 |
$130.8 |
(6.6%) |
Long-Term Debt |
$224.1 |
$476.2 |
(52.9%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
Q2 2007 |
Q2 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
$4.9 |
$5.1 |
(3.5%) |
Capital Expenditures |
$9.1 |
$10.1 |
(9.8%) |
Free Cash Flow |
-$4.2 |
-$5.0 |
16.2% |
Find out why Fools always follow the money.
Competitors and partners:
-
CSS
Industries
(NYSE:CSS) -
Factory Card & Party Outlet
(NASDAQ:FCPO) -
99 Cents Only Stores
(NYSE:NDN) - Hallmark Cards (private)
Go dumpster diving with the Motley Fool Inside Value team. You never know what treasure you might find during a free 30-day trial.
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, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here.