On June 28, Family Dollar
- Revenues improved 5.4% to $1.65 billion, with same-store sales increasing 1.5%. The average ticket was up, but the number of transactions fell.
- The gross margin improved 1.3 percentage points, thanks to "increased sales of prepaid services, stronger sales of higher margin merchandise, and better purchase mark-up." However, the operating margin fell, as same-store sales came in lower than expected, deleveraging the income statement.
- For the fourth quarter, management expects sales will increase 5%-7% and earnings per share will rise in the range of $0.26-$0.29.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$1,654.8 |
$1,569.5 |
5.4% |
|
Net Profit |
$60.4 |
$56.9 |
6.1% |
|
EPS |
$0.40 |
$0.37 |
8.1% |
|
Diluted Shares |
150.5 |
154.6 |
(2.6%) |
Get back to basics with the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
34.9% |
33.6% |
1.3 |
|
Operating Margin |
5.6% |
5.9% |
(0.3) |
|
Net Margin |
3.7% |
3.6% |
0.0 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$356.6 |
$168.1 |
112.1% |
|
Inventory |
$1,007.8 |
$1,028.2 |
(2.0%) |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable* |
$1,007.1 |
$918.3 |
9.7% |
|
Long-Term Debt |
$250.0 |
$250.0 |
0.0% |
The balance sheet reflects the company's health.
Cash Flow Highlights
The company did not include a cash flow statement in the press release. We'll have to wait for the 10-Q to see how many dollars changed hands.
Free cash flow is a Fool's best friend.
Related Foolishness:
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