On June 27, The Timberland Company (NYSE:TBL) released first-quarter earnings for the period ended March 30.
- Boots and kids' footwear couldn't hold their own this quarter, causing sales to fall 3.9% to $336.3 million. Fortunately, SmartWool and Timberland PRO picked up some of the slack.
- See those big drops in margins? That's because the company's income statement deleveraged as sales declined.
- For the second quarter, management anticipates a net loss in the range of $18 million to $20 million, excluding restructuring costs.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Sales |
$336.3 |
$349.8 |
(3.9%) |
|
Net Profit |
$9.3 |
$26.1 |
(64.5%) |
|
EPS |
$0.15 |
$0.40 |
(62.5%) |
|
Diluted Shares |
62.0 |
65.0 |
(4.6%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
48.0% |
49.7% |
(1.7) |
|
Operating Margin |
4.1% |
11.5% |
(7.4) |
|
Net Margin |
2.8% |
7.5% |
(4.7) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$119.7 |
$125.3 |
(4.5%) |
|
Accounts Rec. |
$199.7 |
$192.1 |
4.0% |
|
Inventory |
$183.5 |
$174.9 |
4.9% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$77.4 |
$70.0 |
10.6% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
($56.1) |
($59.7) |
N/A |
|
Capital Expenditures |
$5.2 |
$5.5 |
(5.6%) |
|
Free Cash Flow |
($61.3) |
($65.3) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
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