On July 26, IHOP (NYSE:IHP) released Q2, 2006 earnings for the period ended June 30.
- Including stock-based compensation, the company missed earnings badly. However, the estimates likely did not include such compensation. Without it, EPS was flat compared to a year ago.
- The drop in operating and net margins was primarily due to the 21.4% jump in general and administrative expenses. Only one-third of that jump was due to stock-based compensation.
- Same-store sales were up 3.1% for the quarter, which is nice to see, given the current environment.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$86.77 |
$85.07 |
$82.91 |
2.6% |
|
Net Profit |
-- |
$10.31 |
$11.93 |
(13.6%) |
|
EPS |
$0.63 |
$0.56 |
$0.60 |
(6.7%) |
|
Diluted Shares |
18.369 |
19.968 |
(8%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2006 |
Q2 2005 |
Change* | |
|---|---|---|---|
|
Franchise Margin** |
54.75% |
54.38% |
0.37 |
|
Rental Margin** |
24.02% |
25.83% |
(1.81) |
|
Operating Margin |
20.23% |
23.32% |
(3.09) |
|
Net Margin |
12.11% |
14.39% |
(2.28) |
**Defined as segment revenue less respective cost of revenue compared to segment revenue.
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$21.30 |
$55.75 |
(61.8%) |
|
Accounts Rec. |
$40.62 |
$44.41 |
(8.5%) |
|
Inventory |
$0.53 |
$0.89 |
(40.9%) |
|
Liabilities |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$17.11 |
$17.88 |
(4.3%) |
|
Long-Term Debt |
$132.74 |
$138.65 |
(4.3%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$8.89 |
$11.90 |
(25.3%) |
|
Capital Expenditures |
$3.62 |
$1.48 |
145% |
|
Free Cash Flow |
$5.27 |
$10.43 |
(49.4%) |
Find out why Fools always follow the money.
Related Companies:
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- CBRL Group (NASDAQ:CBRL)
- Privately held Waffle House
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At the time of publication, Jim Mueller had no position in any company mentioned. Fool rules are here.
