After the market close Nov. 9, fine-art and collectible auctioneer Sotheby's (NYSE:BID) released fiscal third-quarter 2006 earnings for the period ended Sept. 30. Here are the quick and dirty details for the quarter.
- Sales grew 1.6% to $57.4 million in what is a seasonally slow quarter for Sotheby's. The company estimates that its third quarter accounts for only 7% to 10% of total annual sales.
- Net income came in at minus $30.7 million, while earnings per share remained negative at $0.49; this was worse than the $0.33 loss analysts were expecting for the quarter. Management attributed the higher-than-expected loss to increased salary and administrative costs, but noted that the third quarter usually results in a bottom-line loss.
- Cash flow trends were also negative; investors will have to look to fourth-quarter and year-end results to discern 2006 trends at Sotheby's.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$57,090 |
$57,380 |
$56,469 |
1.6% |
|
Net Profit |
-- |
($30,727) |
($20,961) |
N/A |
|
EPS |
($0.33) |
($0.49) |
($0.35) |
N/A |
|
Diluted Shares |
-- |
61,780 |
61,135 |
1.1% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
81.94% |
85.59% |
(3.65) |
|
Operating Margin |
(66.61%) |
(39.17%) |
(27.44) |
|
Net Margin |
(53.55%) |
(37.12%) |
(16.43) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$43,918 |
$132,635 |
(66.9%) |
|
Accounts Rec. |
$194,307 |
$354,741 |
(45.2%) |
|
Inventory |
$115,426 |
$45,087 |
156.0% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$117,480 |
$131,354 |
(10.6%) |
|
Long-Term Debt |
$99,768 |
$99,701 |
0.1% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
($77,854) |
($133,791) |
$55,937 |
|
Capital Expenditures |
$8,317 |
$6,555 |
$1,762 |
|
Free Cash Flow |
($86,171) |
($140,346) |
$54,175 |
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Related Companies:
- Collectors Universe (NASDAQ:CLCT)
- Ritchie Bros. Auctioneers (NYSE:RBA)
- eBay (NASDAQ:EBAY)
Related Foolishness:
- Foolish Fundamentals: Margins
- Foolish Fundamentals: Free Cash Flow
- Foolish Fundamentals: Return on Invested Capital
- Foolish Fundamentals: The Cash Flow Statement
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