On July 26, Applebee's (NASDAQ:APPB) released Q2 2006 earnings for the period ended June 25.
- Despite fewer shares outstanding boosting EPS by $0.02, the company missed earnings estimates.
- Long-term debt rose drastically compared to last year, even though it was down slightly (by 2.9%) compared to last quarter.
- Free cash flow took it on the chin, but unlike last quarter, it has turned positive.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$331,320 |
$330,793 |
$306,620 |
7.9% |
|
Net Profit |
-- |
$20,404 |
$27,490 |
(25.8%) |
|
EPS |
$0.29 |
$0.27 |
$0.34 |
(20.6%) |
|
Diluted Shares |
-- |
75,083 |
81,360 |
(7.7%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2006 |
Q2 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin** |
73.51% |
73.39% |
0.12 |
|
Operating Margin |
10.41% |
13.58% |
(3.17) |
|
Net Margin |
6.17% |
8.97% |
(2.80) |
** Based on gross profit defined as sales less cost of food and drink, without revenue from franchisees.
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$7,185 |
$944 |
661.1% |
|
Accounts Rec. |
$37,706 |
$38,318 |
(1.6%) |
|
Inventory |
$12,525 |
$27,112 |
(53.8%) |
|
Liabilities |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$41,773 |
$47,456 |
(12%) |
|
Total Debt |
$201,749 |
$86,892 |
132.2% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$38,914 |
$57,481 |
(32.3%) |
|
Capital Expenditures |
$29,008 |
$35,303 |
(17.8%) |
|
Free Cash Flow |
$9,906 |
$22,178 |
(55.3%) |
Find out why Fools always follow the money.
Related Companies:
- Brinker International (NYSE:EAT), operator of Chili's among others
- Cheesecake Factory (NASDAQ:CAKE)
- Darden Restaurants (NYSE:DRI), owner of Olive Garden and Red Lobster
- OSI Restaurant Partners (NYSE:OSI), aka Outback Steakhouse
- Ruby Tuesday (NYSE:RI)
Related Foolishness:
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, Fool contributor Jim Mueller had a position only in Cheesecake Factory. Fool rules are here.
