On March 1, educational product manufacturer LeapFrog Enterprises
- To find out why LeapFrog isn't so green, read the earnings take.
- Revenue fell by 26.3% to $182.9 million, owing to lower sales of the LeapPad family of products and the FLY PenTop computer, which the company is replacing with a new FLY Fusion product.
- Inventory dropped by 56.8% to its lowest level since 2001, as the company pushed to reduce LeapFrog and retailer inventory through allowances and increased advertising spending.
- To invigorate sales and margins, the company plans to introduce many new products in 2007, including its FLY Fusion PenTop Computer system, the largest launch of Leapster software titles, the ClickStart My First Computer system, and other products geared toward infants and preschool children. With the launch of these products slated for Q3, however, management expects the first half of the fiscal year to remain slow.
- The CAPS community isn't leaping for joy, giving LeapFrog a one-star rating in CAPS, our free interactive stock database. Other toy makers like Hasbro
(NYSE:HAS) and Mattel(NYSE:MAT) both have higher CAPS ratings, with three and two stars, respectively. To find out why, log on to CAPS for thoughts from the community about each company.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$182.9 |
$248.0 |
(26.3%) |
|
Net Profit |
($46.0) |
$14.4 |
N/A |
|
EPS |
($0.73) |
$0.23 |
N/A |
|
Diluted Shares |
63.0 |
63.0 |
0.1% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
30.6% |
42.5% |
(11.9) |
|
Operating Margin |
(25.3%) |
7.5% |
(32.8) |
|
Net Margin |
(25.2%) |
5.8% |
(31.0) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$148.1 |
$72.1 |
105.5% |
|
Accounts Rec. |
$141.8 |
$257.7 |
(45.0%) |
|
Inventory |
$73.0 |
$169.1 |
(56.8%) |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$46.7 |
$74.3 |
(37.1%) |
|
Long-Term Debt |
N/A |
N/A |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
2006 |
2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$90.3 |
($24.7) |
N/A |
|
Capital Expenditures |
$20.2 |
$16.7 |
21.3% |
|
Free Cash Flow |
$70.1 |
($41.4) |
N/A |
Find out why Fools always follow the money.
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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 check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
