On Thursday, May 3, office supply retailer OfficeMax (NYSE:OMX) released first-quarter results for the period ended March 31. Here are the quick and dirty details for the quarter.

  • Net sales grew a whopping 0.5%, as did same-store sales in the retail segment. The best the CEO could muster was that "our results for the first quarter showed moderate improvement."

  • Gross margins fell, but operating and net margins increased significantly, leading to a bottom-line profit.

  • While diluted earnings posted positive, they were significantly below analyst expectations and operating cash flow stayed in the red.

  • OfficeMax carries a lowly one-star rating in Motley Fool's CAPS community. Rival Staples (NASDAQ:SPLS) carries a more favorable four stars, while Office Depot (NYSE:HAS) weighs in at three stars. Don't forget that your favorite office supplies can also be found at Target (NYSE:TGT) (three stars) and Motley Fool Inside Value recommendation Wal-Mart (NYSE:WMT) (two stars).    

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q1 2007

Q1 2006

Change

Sales

$2,460,000

$2,436,253

$2,423,537

0.5%

Net Profit

--

$58,539

($25,087)

N/A

EPS

$0.93

$0.76

($0.37)

N/A

Diluted Shares

--

75,744

70,833

6.9%

Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

25.58%

25.86%

(0.28)

Operating Margin

4.52%

(0.35%)

4.87

Net Margin

2.40%

(1.04%)

3.44

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$139,645

$76,644

82.2%

Accounts Rec.

$559,708

$546,490

2.4%

Inventory

$1,018,035

$914,497

11.3%

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$781,030

$743,680

5.0%

Long-Term Debt

$1,819,622

$1,854,550

(1.9%)

The balance sheet reflects the company's health.

Cash Flow Highlights

Q1 2007

Q1 2006

Change

Cash From Ops.

($80,393)

$71,945

(211.7%)

Capital Expenditures

$28,124

$23,321

20.6%

Free Cash Flow

($108,517)

$48,624

(323.2%)

Find out why free cash flow is a Fool's best friend.

Related Foolishness:

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