On Aug. 1, Papa John's (NASDAQ:PZZA) released Q2 2006 earnings for the period ended June 25.
- The bottom line looked great, but take out $0.12 EPS -- from consolidation of results from a franchisee-owned cheese purchasing company (BIBP) -- and the $0.34 result was right in line with consensus estimates.
- Domestic same-store sales were up 4.7% from the year-ago quarter.
- Excluding the impact of BIBP consolidation, cash flow from operations was $5.2 million. This results in free cash flow of negative $2.8 million.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$237,820 |
$241,593 |
$238,675 |
1.2% |
|
Net Profit |
-- |
$15,266 |
$10,870 |
40.4% |
|
EPS |
$0.34 |
$0.46 |
$0.32 |
43.8% |
|
Diluted Shares |
33,309 |
33,746 |
(1.3%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2006 |
Q2 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin** |
81.36% |
78.67% |
2.69 |
|
Operating Margin |
10.14% |
7.32% |
2.82 |
|
Net Margin |
6.32% |
4.55% |
1.77 |
**Based on gross profit, which is defined as company-owned restaurant sales 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. |
$10,494 |
$21,793 |
(51.8%) |
|
Accounts Rec. |
$21,371 |
$21,998 |
(2.9%) |
|
Inventory |
$24,444 |
$21,847 |
11.9% |
|
Liabilities |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$25,228 |
$26,853 |
(6.1%) |
|
Long-Term Debt* |
$45,414 |
$63,519 |
(28.5%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$11,475 |
$18,075 |
(36.5%) |
|
Capital Expenditures |
$7,974 |
$3,302 |
141.5% |
|
Free Cash Flow |
$3,501 |
$14,773 |
(76.3%) |
Find out why Fools always follow the money.
Related Companies:
- Domino's Pizza (NYSE:DPZ)
- Pizza Hut, a division of Yum! Brands (NYSE:YUM)
- Privately held Little Caesar Enterprises
Related Foolishness:
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At the time of publication, Jim Mueller had no position in any company mentioned. Fool rules are here.
