On Nov. 7, satellite TV service provider EchoStar (NASDAQ:DISH) released third-quarter 2006 earnings for the period ending Sept. 30, 2006.
- The sales growth didn't translate into profits, thanks to higher cost of sales and a hefty increase in tax payments. The company added another million subscribers in the interim for a total of 12.8 million, and they don't come cheap.
- The fatter cash balance looks good, until you realize that there's an increase in long-term debt. But free cash flow is at least positive -- satellite TV is just a very capital-intensive line of business.
- You have to appreciate generous share buybacks like EchoStar's. Decreasing your share count by nearly 8% in a year is a very shareholder-friendly thing to do.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$2,440 |
$2,471.4 |
$2,128.2 |
16.1% |
|
Net Profit |
-- |
$139.6 |
$208.9 |
(33.2%) |
|
EPS |
$0.38 |
$0.31 |
$0.43* |
(32.6%) |
|
Diluted Shares |
446.4 |
483.8 |
(7.7%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
46.69% |
48.07% |
(1.38) |
|
Operating Margin |
11.40% |
13.71% |
(2.31) |
|
Net Margin |
5.65% |
9.81% |
(4.16) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,788.2 |
$1,517.5 |
83.7% |
|
Accounts Rec. |
$582.9 |
$471.0 |
23.8% |
|
Inventory |
$268.1 |
$236.3 |
13.5% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$299.1 |
$290.4 |
3.0% |
|
Long-Term Debt |
$6939.4 |
5905.2 |
17.5% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$557.9 |
$504.6 |
10.6% |
|
Capital Expenditures |
$376.9 |
$315.2 |
19.6% |
|
Free Cash Flow |
$181.0 |
$189.4 |
(4.4%) |
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Related Companies:
- DirecTV Group (NYSE:DTV)
- Comcast (NASDAQ:CMCSA)
- Time Warner (NYSE:TWX)
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At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here.
