On April 25, IHOP
- Net sales improved 1.8% because of an increase in the average check. The "All You Can Eat Pancakes" and "Cinn-A-Stacks" limited-time offers helped, but guest traffic still declined.
- Earnings per share declined 7.4% because of a pre-payment penalty on the company's pre-existing debt and costs related to the write-off of deferred financing costs.
- Management reiterated its estimated EPS to a range between $2.50 and $2.60 per diluted share for fiscal 2007 and repurchased 659,400 shares during first-quarter 2007 for $37.6 million.
(Figures in thousands, except per-share data.)
Income Statement Highlights|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$90,124 |
$88,517 |
1.8% |
|
Net Profit |
$11,313 |
$12,594 |
(10.2%) |
|
EPS |
$0.63 |
$0.68 |
(7.4%) |
|
Diluted Shares |
18,046 |
18,650 |
(3.2%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
41.5% |
41.3% |
0.2 |
|
Operating Margin |
22.4% |
23% |
(0.6) |
|
Net Margin |
12.6% |
14.2% |
(1.7) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$51,818 |
$34,919 |
48.4% |
|
Accounts Rec. |
$42,811 |
$42,816 |
(0%) |
|
Inventory |
$415 |
$696 |
(40.4%) |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$14,694 |
$21,498 |
(31.6%) |
|
Long-Term Debt |
$175,000 |
$113,654 |
54% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$14,598 |
$21,502 |
(32.1%) |
|
Capital Expenditures |
$784 |
$241 |
225.3% |
|
Free Cash Flow |
$13,814 |
$21,261 |
(35%) |
Free cash flow is a Fool's best friend.
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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.
