On Feb. 26, Guitar Center
- The company's top line grew 11.7%, thanks to an increase in sales from Guitar Center stores, the Musician's Friend segment, and its Music & Arts division.
- The company had a net loss of $40 million, including a non-cash impairment charge related to its Music & Arts division, as well as stock-based compensation expenses.
- Management anticipates fiscal 2007 net sales between $2.29 billion and $2.35 billion, and EPS between $2.41 and $2.65.
(Figures in millions, except per-share data)
Income Statement Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Sales |
$628.5 |
$562.8 |
11.7% |
Net Profit |
($40.0) |
$33.5 |
N/A |
EPS |
($1.36) |
$1.14 |
N/A |
Diluted Shares |
29.4 |
29.9 |
(1.7%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q4 2006 |
Q4 2005 |
Change** |
|
---|---|---|---|
Gross Margin* |
30.7% |
30.2% |
0.5 |
Operating Margin |
(3.6%) |
10.1% |
(13.7) |
Net Margin |
(6.4%) |
6.0% |
(12.3) |
**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. |
$15.2 |
$14.5 |
4.3% |
Accounts Rec. |
$53.9 |
$40.8 |
32.0% |
Inventory |
$578.1 |
$445.8 |
29.7% |
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Accounts Payable |
$93.7 |
$61.0 |
53.6% |
Long-Term Debt |
$1.4 |
$100.0 |
(98.6%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
No cash flow statement? That most definitely does not rock, dude.
Find out why Fools always follow the money.
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- The Best Retail Stock for 2007: Guitar Center
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