On March 16, Movie Gallery
- Rental revenue was down 5.7%, but product sales were up 10.8%. Unfortunately, product sales couldn't push total revenue growth into positive territory.
- While gross margins declined during the quarter, operating margins, adjusted for impairment charges, rose 70 basis points.
- The company has acquired all the assets of MovieBeam for cash consideration in the first quarter of fiscal 2007.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$663.3 |
$676.4 |
(1.9%) |
|
Net Profit |
($15.1) |
($546.5) |
N/A |
|
EPS |
($0.47) |
($17.34) |
N/A |
|
Diluted Shares |
31.8 |
31.5 |
0.9% |
Get back to basics with the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
55.9% |
57.5% |
(1.5) |
|
Operating Margin |
2.8% |
2.1%** |
0.7 |
|
Net Margin |
(2.3%) |
(80.8%) |
N/M |
**Before impairment charges.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$33.0 |
$136.5 |
(75.8%) |
|
Inventory* |
$480.6 |
$508.1 |
(5.4%) |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$86.4 |
$237.0 |
(63.6%) |
|
Long-Term Debt |
$1,087.9 |
$1,083.1 |
0.4% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
2006 |
2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
($9.8) |
$132.1 |
N/A |
|
Capital Expenditures |
$19.6 |
$58.2 |
(66.3%) |
|
Free Cash Flow |
($29.4) |
$73.9 |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Movie Gallery Fades to Red
- It's in the Box, Movie Gallery
- Foolish Forecast: Movie Gallery's Kick in the Can
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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.
