Marvel Not So Marvelous: Fool by Numbers

On May 4, Marvel Entertainment (NYSE: MVL) released Q1 2006 earnings for the period ended March 31.

• Publishing and toy sales increased, but total revenue was weighed down by less licensing revenue than in the year-ago period (as expected).
• There was a shift from licensing and franchising to manufacturing and merchandising in the toy unit, which had an impact on operating margins.
• Marvel's switch to making its own movies will mean more income, but it carries an increased risk if the movie flops.

(Figures in thousands, except per-share data)

Income Statement Highlights

	Avg. Est.	Q1 2006	Q1 2005	Change
Sales	$77,450	$90,058	$104,144	(13.5%)
Net Profit	--	$17,509	$27,721	(36.8%)
EPS	$0.12	$0.19	$0.25	(24%)

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

Margin Checkup

	Q1 2006	Q1 2005	Change
Gross Margin	73.48%	88.19%	(14.71)
Op. Margin	35.55%	46.05%	(10.49)
Net Margin	19.44%	26.62%	(7.18)

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q1 2006	Q1 2005	Change
Cash+ ST Invest.*	$22,036	$243,477	(90.9%)
Inventory	$15,237	$7,453	104.4%
Accounts Rec.	$56,809	$66,614	(14.7%)

*Does not include restricted cash

Liabilities	Q1 2006	Q1 2005	Change
Long-Term Debt	$0	$0	--
Accounts Pay.	$3,955	$4,143	(4.5%)

Learn the ways of the balance sheet.

Cash Flow Highlights

No cash flow statement provided. Boo!

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Related Companies:

• DC Comics
• Hasbro (NYSE: HAS)
• Mattel (NYSE: MAT)
• Time Warner (NYSE: TWX)

Related Foolishness:

• Marvel Toys With Hasbro
• Will Licensing Doom Marvel?
• Marvel Dueling Fools

Hasbro, Marvel, and Time Warner are Stock Advisor recommendations. Mattel is a Hidden Gems and Inside Value pick. Check out our entire suite of newsletters by clicking here.

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, Jim Mueller had no position in any company mentioned. Fool rules are here.