On Nov. 14, Cato
- Revenues increased 5.3% to $190.9 million, despite a no-growth scenario in comparable-store sales.
- The gross margin rate decreased by 40 basis points primarily because of higher freight and occupancy costs, marginally offset by an increase in merchandise contribution.
- Net profit surged 44.1% to $5.9 million, on higher sales and well-supported by lower incentive compensation and lower write-offs related to the company's proprietary credit card.
- The company expects to open 22 stores in the fourth quarter, which would bring the total number of new stores opened for the year to 60.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$190.9 |
$181.4 |
5.3% |
|
Net Profit |
$5.9 |
$4.1 |
44.1% |
|
EPS |
$0.18 |
$0.13 |
38.5% |
|
Diluted Shares |
31.8 |
31.8 |
0.2% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
32.2% |
32.6% |
(0.4) |
|
Operating Margin |
3.7% |
2.8% |
0.9 |
|
Net Margin |
3.1% |
2.2% |
0.8 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$107.7 |
$93.4 |
15.3% |
|
Accounts Rec. |
$45.2 |
$47.6 |
(5.1%) |
|
Inventory |
$110.1 |
$103.4 |
6.4% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Current Liabilities |
$115.2 |
$120.1 |
(4.1%) |
|
Non-Current Liabilities |
$32.4 |
$34.5 |
(6.1%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
No cash flow statement with the earnings release. That's a great way to bum out investors.
Find out why Fools always follow the money.
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