Yesterday, Motley Fool Stock Advisor pick Marvel Entertainment
- Third-quarter licensing revenue ballooned to $66 million from $28.3 million the year before, thanks mostly to the success of Spider-Man 3, which Sony
(NYSE:SNE) released in May. - Similar licensing deals are in the works. Lions Gate
(NYSE:LGF) plans a sequel to 2004's The Punisher for next year, and News Corp.'s(NYSE:NWS) 20th Century Fox has slated X-Men Origins: Wolverine for May of 2009. - Licensing also improved margins by reducing inventory and production costs for toys. Marvel shed its toy business in 2006 in favor of a deal with Hasbro
(NYSE:HAS) .
For the most part, CAPS investors like what they see. They give the stock four out of five stars. What's your take? Click here and let us know.
(Figures are in thousands, except per-share data.)
Income Statement Highlights
Q3 2007 |
Q3 2006 |
Change |
|
---|---|---|---|
Sales |
$123,642 |
$92,161 |
34.2% |
Net Profit |
$36,268 |
$13,200 |
174.8% |
EPS |
$0.45 |
$0.16 |
181.3% |
Diluted Shares |
80,521 |
84,854 |
(5.1%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q3 2007 |
Q3 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
85.82% |
67.79% |
18.03 |
Operating Margin |
53.14% |
29.98% |
23.16 |
Net Margin |
29.33% |
14.32% |
15.01 |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q3 2007 |
Q3 2006 |
Change |
---|---|---|---|
Cash + ST Invest.* |
$45,611 |
$42,307 |
7.8% |
Accounts Rec. |
$37,708 |
$71,235 |
(47.1%) |
Inventory |
$10,076 |
$11,874 |
(15.1%) |
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
---|---|---|---|
Accounts Payable |
$1,934 |
$9,114 |
(78.8%) |
Non-Film Debt |
$0 |
$79,700 |
(100.0%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
YTD 2007 |
YTD 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
$16,298 |
$116,513 |
(86.0%) |
Capital Expenditures |
$2,372 |
$14,466 |
(83.6%) |
Free Cash Flow |
$13,926 |
$102,047 |
(86.4%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Marvel had great numbers last quarter but lost the expectations game.
- Lookee here! Marvel got an upgrade!
- Let's revisit our duel on Marvel.