On July 11, Ruby Tuesday (NYSE:RI) released Q4 2006 earnings for the period ended June 6.

  • Both quarterly earnings per share and revenue came in higher than analyst expectations.
  • The large earnings-per-share boost was helped by the repurchase of about eight million shares over the course of the fiscal year.
  • Cost of goods increased just a little, operating margins improved, and net margin fell, primarily due to higher interest expense.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q4 2006

Q4 2005

Change

Sales

$361.34

$364.31

$295.39

23.3%

Net Profit

N/A

$31.71

$25.96

22.1%

EPS

$0.51

$0.53

$0.40

32.5%

Diluted Shares

N/A

59.58

64.87

(8.2%)



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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin**

73.81%

73.87%

(0.06)

Operating Margin

14.17%

13.47%

0.7

Net Margin

8.7%

8.79%

(0.09)

*Expressed in percentage points.
**Defined as sales less cost of food and beverage, without revenue from franchisees.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$22.36

$19.78

13%

Accounts Rec.

$12.02

$8.14

47.7%

Inventory

$17.43

$16.99

2.6%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

No Data

$46.59

N/A

Long-Term Debt

$375.64

$247.22

51.9%



Learn the ways of the balance sheet.

Cash Flow Highlights

Q4 2006

Q4 2005

Change

Cash From Ops.

No Data

$49.46

N/A

Capital Expenditures

$41

$48.67

(15.8%)

Free Cash Flow

No Data

$0.79

N/A



Find out why Fools always follow the money.

Related Companies:

  • Applebee's (NASDAQ:APPB)
  • Brinker International (NYSE:EAT)
  • O'Charley's (NASDAQ:CHUX)
  • OSI Restaurant Partners (NYSE:OSI)

Related Foolishness:

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At the time of publication, Jim Mueller had no position in any company mentioned. Fool rules are here.