On Tuesday, Dec. 19, children's book publisher Scholastic (NASDAQ:SCHL) released second-quarter 2007 earnings for the period ended Nov. 11, 2006.
- Weaker results from the educational segments were more than balanced out by stronger sales and operating margins in the international and children's book publishing divisions.
- Inventory is following Scholastic's normal seasonal pattern, starting with a fat inventory load in Q1 that drops quarter by quarter until the end of the fiscal year -- which coincides with the school year.
- We could use your opinion! Scholastic is thinly followed by Motley Fool CAPS investors, and every bit of insight helps. Sign in today and make your voice heard.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change | |
|---|---|---|---|
|
Sales |
$735.5 |
$696.7 |
5.6% |
|
Net Profit |
$75.1 |
$66.9 |
12.3% |
|
EPS |
$1.75 |
$1.58 |
10.8% |
|
Diluted Shares |
42.8 |
42.4 |
0.9% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
56.1% |
56.7% |
(0.6) |
|
Operating Margin |
17.2% |
16.6% |
0.6 |
|
Net Margin |
10.2% |
9.6% |
0.6 |
|
Return On Average Equity |
28.8% |
27.7% |
1.2 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$133.7 |
$249.3 |
(46.4%) |
|
Accounts Rec. |
$339.0 |
$308.3 |
10% |
|
Inventory |
$494.3 |
$472.3 |
4.7% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$145.6 |
$164.4 |
(11.4%) |
|
Long-Term Debt |
$173.3 |
$473.5 |
(63.4%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q2 2007 |
Q2 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$142.5 |
$324.7 |
(56.1%) |
|
Capital Expenditures |
$13.1 |
$15.3 |
(14.4%) |
|
Free Cash Flow |
$129.4 |
$309.4 |
(58.2%) |
|
$78.0 |
$68.4 |
14% |
Find out why Fools always follow the money.
Cash Management Checkup
|
Q2 2007 |
Q2 2006 |
Change | |
|---|---|---|---|
|
Days in Inventory |
145.2 |
111.9 |
33.27 |
|
Days in Receivables |
36.0 |
46.5 |
(10.48) |
|
Days Payables Outstanding |
43.2 |
39.2 |
3.98 |
|
Cash Conversion Cycle |
138.0 |
119.2 |
18.81 |
Read up on cash conversion metrics.
Related Companies:
- Readers Digest (NYSE:RDA)
- LeapFrog (NYSE:LF)
- Answers (NASDAQ:ANSW)
- Educate (NASDAQ:EEEE)
-
Reed Elsevier (NYSE:ENL)
Related Foolishness:
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At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here .
