On Aug. 2, Ryan's Restaurant Group (NASDAQ:RYAN) released Q2 2006 earnings for the period ending June 28.

  • GAAP earnings missed estimates because of an $8.4 million charge set aside for a class-action lawsuit against the company.
  • Margins improved across the board from last year, despite one-time charges.
  • Free cash flow dramatically improved year over year because of CAPEX reductions.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2006

Q2 2005

Change

Sales

Not given

$208,871

$215,510

(3.1%)

Net Profit

--

$6,863

$6,260

9.6%

EPS

$0.22

$0.16

$0.15

6.7%

Diluted Shares

42,639

42,569

0.2%



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

Margin Checkup

Q2 2006

Q2 2005

Change*

Gross Margin**

65.87%

64.57%

1.30

Operating Margin

4.69%

4.33%

0.36

Net Margin

3.29%

2.90%

0.39

*Expressed in percentage points.
** Based on gross profit defined as sales (above) less cost of food and drink.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2006

Q2 2005

Change

Cash + ST Invest.

$13,580

$16,508

(17.7%)

Accounts Rec.

$7,761

$4,633

67.5%

Inventory

$5,438

$6,558

(17.1%)



Liabilities

Q2 2006

Q2 2005

Change

Accounts Payable

$6,346

$8,932

(29.0%)

Total Debt

$139,500

$180,250

(22.6%)



Learn the ways of the balance sheet.

Cash Flow Highlights

Q2 2006

Q2 2005

Change

Cash From Ops.

$13,043

$19,705

(33.8%)

Capital Expenditures

$6,175

$18,602

(66.8%)

Free Cash Flow

$6,868

$1,103

522.7%



Find out why Fools always follow the money.

Related Companies:

  • Denny's (NASDAQ:DENN)
  • IHOP (NYSE:IHP)
  • Luby's (NYSE:LUB)
  • Privately held Golden Corral

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, Jim Mueller did not have a position in any company mentioned. Fool rules are here.