On Dec. 19, hotel and cinema operator Marcus (NYSE:MCS) released second-quarter 2007 earnings for the period ended Nov. 23.
- Let's see whether we can knock down a few of the craziest year-over-year changes in these statements. Net earnings jumped 124%, thanks to $8.6 million of gains on the sale of assets in discontinued movie theaters and hotels, and condominium sales.
- How about the inventory change? The new balance reflects a bushel of freshly built condos in the Las Vegas Platinum Hotel & Spa condominium hotel project, all held for sale.
- Marcus paid out $214.6 million as a special dividend in the fourth quarter of 2006, which explains the massive drop in cash on hand, assets, and shareholders' equity. Unloading that cash did wonders for the ROE and ROA metrics, though it's somewhat troubling that management couldn't put it to work in more forward-looking ways.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change | |
|---|---|---|---|
|
Sales |
$70,605 |
$67,025 |
5.3% |
|
Net Profit, Continuing Operations |
$10,263 |
$4,581 |
124.0% |
|
EPS, Continuing Operations |
$0.33 |
$0.15 |
120.0% |
|
Diluted Shares |
30,805 |
30,703 |
0.3% |
Get back to basics with a look at the income statement.
Management Effectiveness
|
Q2 2007 |
Q2 2006 |
Change* | |
|---|---|---|---|
|
Return on Average Assets |
6.4% |
4.5% |
1.9 |
|
Return on Average Equity |
13.1% |
3.6% |
9.5 |
See how management puts its financial tools to work.
Margin Checkup
Q2 2007 | Q2 2006 | Change* | |
|---|---|---|---|
Gross Margin | 51.7% | 50.7% | 1.0 |
Operating Margin | 12.0% | 12.4% | (.4) |
Net Margin | 14.5% | 6.8% | 7.7 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets | Q2 2007 | Q2 2006 | Change |
|---|---|---|---|
Cash + Short-Term Investments | $23,267 | $273,632 | (91.5%) |
Accounts Receivable | $17,634 | $14,653 | 20.3% |
Inventory | $76,413 | $0 | N/A |
Liabilities | Q2 2007 | Q2 2006 | Change |
|---|---|---|---|
Accounts Payable | $14,363 | $9,647 | 48.9% |
Long-Term Debt* | $248,596 | $192,745 | 29.0% |
Learn the ways of the balance sheet.
Cash Flow Highlights
Marcus didn't give us the benefit of a cash flow statement at this time. Et tu, Marcus?
Find out why Fools always follow the money.
Cash Conversion Checkup
Q2 2007 | Q2 2006 | Change | |
|---|---|---|---|
Days in Inventory | 100.8 | 0.0 | 100.8 |
Days in Receivables | 21.6 | 19.1 | 2.5 |
Days Payables Outstanding | 42.9 | 28.8 | 14.1 |
Cash Conversion Cycle | 79.5 | (9.7) | 89.2 |
Read up on cash conversion metrics.
Related Companies:
- Hilton Hotels (NYSE:HLT)
- Marriot International (NYSE:MAR)
- Carmike Cinemas (NASDAQ:CKEC)
- Wyndham Worldwide (NYSE:WYN)
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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 checkFool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributorAnders Bylund had no position in any company mentioned. Fool rules are here.
