On June 6, Shuffle Master (NASDAQ:SHFL) released second-quarter earnings for the period ended April 30.

  • Gross margin declined by 690 basis points, primarily because of lower-margin sales of the Stargames slot product and electronic table games.
  • The Stock Advisor recommendation carries a two-star rating in Motley Fool CAPS, unchanged from last quarter.
  • For more analysis, read Steven Mallas' Take on Q2 earnings.

(Figures in thousands, except per-share data.)

Income Statement Highlights

Q2 2007

Q2 2006

Change

Sales

$44,644

$43,303

3.1%

Net Profit*

$3,427

($12,632)

N/A

EPS

$0.10

($0.37)

N/A

Diluted Shares

35,336

34,555

2.3%

*Income from continuing operations.

Get back to basics with the income statement.

Margin Checkup

Q2 2007

Q2 2006

Change*

Gross Margin

59.8%

66.6%

(6.9)

Operating Margin

17.6%

(15.9%)

33.5

Net Margin

7.7%

(29.2%)

36.9

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Cash + ST Invest.

$7,148

$33,947

(78.9%)

Accounts Rec.

$31,667

$32,275

(1.9%)

Inventory

$33,015

$20,751

59.1%

Liabilities

Q2 2007

Q2 2006

Change

Accounts Payable

$9,574

$8,620

11.1%

Long-Term Debt

$223,157

$162,533

37.3%

The balance sheet reflects the company's health.

Cash Flow Highlights
No data available.

Free cash flow is a Fool's best friend.

Related Foolishness:

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