On Nov. 14, Staples (NASDAQ:SPLS) released third-quarter earnings for the period ended Oct. 28.

  • Sales increased by 12% to $4.75 billion, thanks to improved performance in core office supplies, ink and toner, paper, and portable computers, along with a positive impact in foreign-currency transactions.
  • Net income increased by 29.2 % to $289.9 million because of lower interest and miscellaneous expenses.
  • Free cash flow decreased by 37.6% to $276.6 million, because of lower cash from operations and increase in capital expenditure by 21.7%.

(Figures in million, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$4,756.6

$4,245.5

12%

Net Profit

$289.9

$224.5

29.2%

EPS

$0.39

$0.30

30%

Diluted Shares

736.2

747.6

(1.5%)



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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

28.6%

28.8%

(0.1)

Operating Margin

8.5%

8.3%

0.2

Net Margin

6.1%

5.3%

0.8

*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.

$1,321.0

$1,329.1

(0.6%)

Accounts Rec.

$717.8

$568.4

26.3%

Inventory

$1,909.3

$1,708.7

11.7%

Accounts Payable

$1,525.6

$1,366.0

11.7%

Long-Term Debt

$320.6

$526.5

(39.1%)



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$628.8

$732.8

(14.2%)

Capital Expenditures

$352.2

$289.3

21.7%

Free Cash Flow

$276.6

$443.5

(37.6%)



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Related Companies:

  • OfficeMax (NYSE:OMX)
  • Office Depot (NYSE:ODP)

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