On Oct. 27, OfficeMax (NYSE:OMX) released third-quarter earnings for the period ended Sept. 30.
- Store closings in the first quarter of 2006 were the main cause of the 1.9% decline in sales.
- The benefit of closing non-performing stores was better cost control. Operating margin increased more than 20 basis points, to 2.8%.
- Those cost-cutting measures led to a increase in profits, and more importantly, positive free cash flow year to date.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$2,222 |
$2,244 |
$2,288 |
(1.9%) |
|
Net Profit |
-- |
$31 |
($0) |
N/A |
|
EPS |
$0.55 |
$0.41 |
($0.02) |
N/A |
|
Diluted Shares |
-- |
75 |
71 |
5.8% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
26.06% |
24.18% |
1.88 |
|
Operating Margin |
2.78% |
0.70% |
2.08 |
|
Net Margin |
1.40% |
(0.02%) |
1.42 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$314 |
$78 |
300% |
|
Accounts Rec. |
$537 |
$592 |
(9.3%) |
|
Inventory |
$909 |
$981 |
(7.4%) |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$837 |
$876 |
(4.4%) |
|
Long-Term Debt |
$1,854.4 |
$1,902.7 |
(2.5%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2006 |
YTD 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$340 |
($101) |
N/A |
|
Capital Expenditures |
$97 |
$109 |
(11.4%) |
|
Free Cash Flow |
$243 |
($210) |
N/A |
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Related companies:
- Staples (NASDAQ:SPLS)
- Office Depot (NYSE:ODP)
Related Foolishness:
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