On June 20, Sonic (NASDAQ:SONC) released Q3 fiscal 2006 earnings for the period ended May 31.
- Earnings jumped by 12% and EPS by 17.4%, thanks to the company's buying back over 5 million shares during the past year.
- Operating margins dropped because of several factors, including increases in advertising and the number of corporate employees.
- Comps increased by 4.3%, consisting of a 5% increase at franchised stores and 1.4% at company stores.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$189.7 |
$186.5 |
$141.8 |
31.5% |
|
Net Profit |
-- |
$23.8 |
$21.3 |
12% |
|
EPS |
$0.26 |
$0.27 |
$0.23 |
17.4% |
|
Diluted Shares |
89.01 |
94.07 |
(5.4%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin** |
74.3% |
74% |
0.3 |
|
Operating Margin |
20.95% |
24.55% |
(3.6) |
|
Net Margin |
12.78% |
15% |
(2.22) |
*Expressed in percentage points.
** Does not include franchise royalty and fee revenue.
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Current Assets |
$54.9 |
$37.5 |
46.4% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Current Liabilities |
$80.7 |
$55.8 |
44.5% |
|
Long-Term Debt* |
$181.6 |
$118** |
53.8% |
*Capital lease obligations, long term debt, other non-current.
**Not adjusted for effect of stock-based compensation.
Learn the ways of the balance sheet.
Cash Flow Highlights
No meaningful, precise data given, beyond $28 million in capital expenditures, compared to $26.6 million a year ago.
Find out why Fools always follow the money.
Related Companies:
- Burger King Holdings (NYSE:BKC)
- McDonalds (NYSE:MCD)
- Wendy's (NYSE:WEN)
- Yum! Brands (NYSE:YUM)
Related Foolishness:
- This quarter's forecast.
- Last quarter's results.
- Nine months ago, doing well.
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At the time of publication, Jim Mueller had no position in any stock mentioned. Fool rules are here.
