On Dec. 6, Tweeter Home Entertainment (NYSE:TWTR) released fourth-quarter earnings for the period ended Sep. 30.

  • A 13% decrease in comparable store sales led to a 13.8% decline in revenues.
  • In 2006, a 32% increase in flat panel sales and a 51% increase in units only amounted to an 8% increase in revenue for the entire television category, as projection TV sales were down 16%.
  • CAPS players (people in our community intelligence database) don't have much to say. But those that do don't like what they see; five of nine investors rate Tweeter an underperform.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$162.3

$188.3

(13.8%)

Net Profit

($16.4)

($18.5)

N/A

EPS

($0.65)

($0.75)

N/A

Diluted Shares

25.5

24.6

3.4%

*Includes income from continued operations.

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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

40.1%

38.4%

1.7

Operating Margin

(10%)

(8.3%)

(1.7)

Net Margin

(10.1%)

(9.8%)

(0.3)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$1.3

$1.3

(1.1%)

Accounts Rec.

$20.2

$28.2

(28.4%)

Inventory

$109.0

$111.5

(2.2%)



Q4 2006

Q4 2005

Change

Current Liabilites*

$100.6

$109.8

(8.4%)

Long-Term Debt

$48.9

$62.6

(21.9%)

*Excludes current portion of long-term debt.

Learn the ways of the balance sheet.

Cash Flow Highlights

No cash flow statement was included in the press release.

Find out why Fools always follow the money.

Related Companies:

  • Best Buy (NYSE:BBY)
  • Circuit City Stores (NYSE:CC)
  • RadioShack (NYSE:RSH)

Related Foolishness:

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