On Feb. 22, OfficeMax (NYSE:OMX) released fourth-quarter earnings for the period ended Dec. 30.
- Sales decreased 8.1%, following a reduction in store count and one fewer week in the quarter.
- The gross margin increased by 190 basis points, thanks to improved vendor income, lower delivery costs, and more focus on higher margin sales.
- The operating margin increased by 290 basis points. The benefits of reduced integration costs and targeted cost-reduction programs were partially offset by the deleveraging of fixed costs.
- OfficeMax is a one-star stock in our Motley Fool CAPS community intelligence tool, while competitors Staples (NASDAQ:SPLS) and Office Depot (NYSE:ODP) both earn three-star ratings.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Sales |
$2,256.8 |
$2,455.4 |
(8.1%) |
|
Net Profit* |
$54.4 |
($22.6) |
N/A |
|
EPS* |
$0.71 |
($0.33) |
N/A |
|
Diluted Shares |
75.5 |
70.8 |
6.6% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
25.6% |
23.8% |
1.9 |
|
Operating Margin |
2.9% |
(0.0%) |
2.9 |
|
Net Margin |
2.4% |
(0.9%) |
3.3 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$282.1 |
$72.2 |
290.7% |
|
Accounts Rec. |
$562.5 |
$600.2 |
(6.3%) |
|
Inventory |
$1,071.5 |
$1,114.6 |
(3.9%) |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$997.7 |
$991.5 |
0.6% |
|
Long-Term Debt |
$1,854.2 |
$1,877.2 |
(1.2%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
2006 |
2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$375.7 |
($57.7) |
N/A |
|
Capital Expenditures |
$174.8 |
$152.5 |
14.6% |
|
Free Cash Flow |
$200.9 |
($210.1) |
N/A |
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