On Thursday, Feb. 1, rural farm and ranch supply retailer Tractor Supply Company (NASDAQ:TSCO) released fourth-quarter and year-end results for the period ended Dec. 30, 2006. Here are the quick and dirty details for the quarter.

  • Sales grew 5.3% to $629.9 million. Same-store sales grew an uninspiring 0.5% versus a stellar 10% gain in last year's quarter.
  • Total diluted earnings fell 4%, as higher gross margins weren't enough to offset higher advertising expenses and stock option expenses of $0.04 per share.
  • Inventory jumped 28.8%, as "sales were weaker than expected primarily due to unseasonably warm weather in the northern regions of the country, which resulted in decreased demand for winter related merchandise and lower store traffic."
  • Management expects 2007 sales of $2.7 billion-$2.74 billion and diluted earnings of $2.45-$2.52 per share.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$629,899

$597,934

5.3%

Net Profit

$29,497

$30,902

(4.5%)

EPS

$0.72

$0.75

(4.0%)

Diluted Shares

41,118

41,182

(0.2%)

*Three months ended Dec. 30, 2006 and Dec. 31, 2005.

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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

32.6%

31.9%

0.7

Operating Margin

7.7%

8.3%

(0.6)

Net Margin

4.7%

5.2%

(0.5)

*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.

$37,605

$21,203

77.4%

Inventory

$593,373

$460,751

28.8%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$238,905

$185,397

28.9%



Learn the ways of the balance sheet.

Cash Flow Highlights

Fools will have to wait until the 10-Q is filed for juicy cash flow details.

Find out why Fools always follow the money.

Comparable companies:

  • Wal-Mart (NYSE:WMT)
  • Sears (NASDAQ:SHLD)
  • Home Depot (NYSE:HD)
  • Lowe's (NYSE:LOW)
  • PetSmart (NASDAQ:PETM)

Related Foolishness:

Wal-Mart and Home Depot are Inside Value picks. PetSmart is a Stock Advisor selection.

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.

Fool contributor Ryan Fuhrmann is long shares of Tractor Supply, Home Depot, and Petsmart but has no financial interest in any other company mentioned. The Fool has an ironclad disclosure policy. Feel free to email him with feedback or to discuss any companies mentioned further.