On Feb. 7, DirecTV
- Revenues increased by 16.3% on the back of strong growth in average revenue per subscriber, a larger subscriber base in the DirecTV U.S. segment, and a consolidation of Sky Brazil's financial results.
- Net profit increased by 194% because of the capitalization of customer equipment under the lease program, partially offset by higher upgrade and retention costs.
- Operating margin improved by 810 basis points, mainly thanks to a decrease in subscriber acquisition costs as a percentage of sales.
- Free cash flow increased by 318.8% as a result of increase in cash flow partly offset by an increase in capital expenditure.
- In 2006, the company repurchased 184.1 million shares for approximately $2.98 billion.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$4,183.1 |
$3,595.5 |
16.3% |
|
Net Profit |
$356.0 |
$121.2 |
193.7% |
|
EPS |
$0.29 |
$0.09 |
222.2% |
|
Diluted Shares |
1,231.9 |
1,397.0 |
(11.8%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
45.8% |
46.4% |
(0.6) |
|
Operating Margin |
14.2% |
6.1% |
8.1 |
|
Net Margin |
8.5% |
3.4% |
5.1 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + Short-Term Investments |
$2,669.2 |
$4,384.5 |
(39.1%) |
|
Accounts Receivable |
$1,345.2 |
$1,033.2 |
30.2% |
|
Inventory |
$147.9 |
$283.1 |
(47.8%) |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$2,815.9 |
$2,541.8 |
10.8% |
|
Long-Term Debt |
$3,394.9 |
$3,405.3 |
(0.3%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2006 |
YTD 2005 |
Change |
|
|---|---|---|---|
|
Cash From Operations |
$3,162.0 |
$1,171.9 |
169.8% |
|
Capital Expenditures |
$1,976.1 |
$888.7 |
122.4% |
|
Free Cash Flow |
$1,185.9 |
$283.2 |
318.8% |
Find out why Fools always follow the money.
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