On Nov. 9, Motley Fool Stock Advisor recommendation TOM Online (NASDAQ:TOMO) released third-quarter earnings for the period ended Sept. 30, 2006.

  • For the full analysis on TOM Online, see this article by Rick Munarriz.
  • Net income decreased by 59% to $5.27 million because of a 9% decrease in online advertising revenues and increased selling and marketing expenses.
  • TOM Online is currently rated a three-star stock in the Motley Fool CAPS service. Join the service for free today and make your opinion known.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$38,946

$45,941

(15.2%)

Net Profit

$5,278

$12,882

(59.0%)

EPS

$0.12

$0.31

(61.3%)

Diluted Shares

4,259,625.2

4,203,069.7

1.3%



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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

32.8%

44.1%

(11.3)

Operating Margin

10.8%

25.0%

(14.2)

Net Margin

13.6%

28.0%

(14.5)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$128,589

$87,372

47.2%

Accounts Rec.

$30,242

$32,916

(8.1%)

Inventory

$112

$63

77.8%



Q3 2006

Q3 2005

Change

Accounts Payable

$5,445

$4,910

10.9%

Long-Term Debt

$55,271

$56,653

(2.4%)



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$42,963

$38,818

10.7%

Capital Expenditures

$4,954

$6,449

(23.2%)

Free Cash Flow

$38,009

$32,369

17.4%



Find out why Fools always follow the money.

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Related Foolishness:

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