On Dec. 19, golfing retailer Golf Galaxy (NASDAQ:GGXY) released its third-quarter earnings for the period ended Nov. 25.

  • Sales grew almost 45% during the quarter, with the company having opened 15 new stores year to date. Same-store sales chipped ahead 3.8% as well.

  • Gross margin increased during the quarter, and management cited less promotional activity this year.

  • The company recently announced that it will be acquired by Dick's Sporting Goods (NYSE:DKS). It expects the acquisition to close in February. If so, this may be the last release from the company.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$46.1

$31.8

45.0%

Net Profit

($3.4)

($1.6)

N/A

EPS

($0.31)

($0.15)

N/A

Diluted Shares

11.1

10.7

3.7%

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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

26.2%

24.8%

1.4

Operating Margin

(9.0%)

(9.1%)

0.1

Net Margin

(7.4%)

(5.1%)

(2.3)

*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.

$2.3

$15.5

(85.2%)

Accounts Rec.

$8.7

$6.1

42.6%

Inventory

$62.1

$43.3

43.4%

Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$23.3

$21.9

6.4%

Long-Term Debt

$0.0

$0.0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights
The cash flow statement must have been left behind on a previous hole. Let's hope someone will turn it in to the clubhouse before the 10-Q is due.

Find out why Fools always follow the money.

Related Companies:

  • Golfsmith (NASDAQ:GOLF)
  • Cleveland Golf by Quiksilver (NYSE:ZQK)
  • Titleist by Fortune Brands (NYSE:FO)

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