On March 1, Del Monte Foods (NYSE:DLM) released third-quarter earnings for the period ended Jan. 28.

  • For the full rundown on Del Monte's quarter, open up this earnings cocktail.
  • The sales growth was largely driven by the company's acquisitions of the Meow Mix and Milk-Bone brands.
  • The company expects 12%-15% sales growth for its 2007 fiscal year, again driven by its recent acquisitions.
  • Del Monte is currently rated a two-star stock by the Motley Fool CAPS community. Competitor Smucker (NYSE:SJM) is rated higher by investors, coming in at a four-star rating. But Heinz (NYSE:HNZ), a Motley Fool Income Investor pick, is rated a lowly two stars as well. To see what people are saying about all three of these companies and many more, join CAPS for free today.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2007

Q3 2006

Change

Sales

$907.2

$789.6

14.9%

Net Profit*

$45.1

$45.2

(0.2%)

EPS*

$0.22

$0.22

0.0%

Diluted Shares

204.4

201.9

1.2%

*From continuing operations.

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

Margin Checkup

Q3 2007

Q3 2006

Change*

Gross Margin

27.9%

27.7%

0.3

Operating Margin

12.2%

11.7%

0.5

Net Margin

5.0%

5.7%

(0.8)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2007

Q3 2006

Change

Cash + ST Invest.

$20.9

$94.6

(77.9%)

Accounts Rec.

$251.5

$218.2

15.3%

Inventory

$1,006.2

$1,024.6

(1.8%)

Liabilities

Q3 2007

Q3 2006

Change

Accounts Payable*

$501.6

$462.8

8.4%

Total Debt**

$1,986.1

$1,305.0

52.2%

*Accounts payable includes accrued expenses.
 **Excludes short-term borrowings.

Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2007

YTD 2006

Change

Cash From Ops.

$20.2

$86.5

(76.6%)

Capital Expenditures

$51.3

$39.2

30.9%

Free Cash Flow

($31.1)

$47.3

N/A

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