On Dec. 7, grocer Pathmark (NASDAQ:PTMK) released its third-quarter earnings for the period ended Oct. 28, 2006.

  • Unfortunately, sales dropped for the quarter and same-store sales were flat.
  • But improved gross and operating margins saved the day and prevented the loss from widening.
  • Only four people have rated Pathmark in our new community-intelligence database, Motley Fool CAPS. I know grocery stores can be boring, but add your opinion -- we could use you!

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$978.1

$980.5

(0.2%)

Net Profit

($5.8)

($18.3)

N/A

EPS

($0.11)

($0.36)

N/A

Diluted Shares

52.1

50.7

2.8%



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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

29.4%

27.9%

1.5

Operating Margin

0.5%

(1.4%)

1.9

Net Margin

(0.6%)

(1.9%)

1.3

*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.

$40.7

$83.7

(51.4%)

Accounts Rec.*

$93.1

$86.4

7.8%

Inventory

$204.4

$203.3

0.5%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$117.0

$115.1

1.1%

Long-Term Debt**

$584.9

$594.5

(1.6%)

*Includes payments due from suppliers.
**Includes long-term capital lease obligations.

Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.*

No Data

$5.7

N/A

Capital Expenditures

$59.8

$39.6

51.0%

Free Cash Flow

No Data

($33.9)

N/A

*Note to management: Adjusted EBITDA is not cash flow.

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Related Companies:

  • Kroger (NYSE:KR)
  • Safeway (NYSE:SWY)
  • Whole Foods (NASDAQ:WFMI)

Related Foolishness:

Whole Foods is a Motley Fool Stock Advisor recommendation. Try the newsletter free for 30 days.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, David Meier did not own shares in any of the companies mentioned. Fool rules for disclosure are here.