On Wednesday, Rule Breakers selection Under Armour (NYSE:UA) released earnings for the fiscal year ended Dec. 31.

  • Margins improved across the board for the maker of athletic clothing. That speaks well for Under Armour's competitive position versus Nike and others.
  • Accordingly, management says that sales and income from operations should improve by 30% to 35% during 2007.
  • Under Armour is rated a one-star stock in the Motley Fool CAPS stock-rating database. Do you agree or disagree? Join the service for free to make your opinion known.

(Figures in thousands, except per-share data)

Income Statement Highlights

FY 2006

FY 2005

Change

Sales

$430,689

$281,053

53.2%

Net Profit

$38,979

$19,719

97.7%

EPS

$0.79

$0.36

119.4%

Diluted Shares

49,587

39,686

24.9%



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

Margin Checkup

FY 2006

FY 2005

Change*

Gross Margin

50.06%

48.34%

1.72

Operating Margin

13.30%

12.77%

0.53

Net Margin

9.05%

7.02%

2.03

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

FY 2006

FY 2005

Change

Cash + ST Invest.

$70,655

$62,977

12.2%

Accounts Rec.

$71,867

$53,132

35.3%

Inventory

$81,031

$53,607

51.2%



Liabilities

FY 2006

FY 2005

Change

Accounts Payable

$68,121

$43,864

55.3%

Total Debt

$6,257

$8,391

(25.4%)



Learn the ways of the balance sheet.

Cash Flow Checkup

No cash flow statement provided. (Lame!)

Find out why Fools always follow the money.

Related Companies:

  • Dick's Sporting Goods (NYSE:DKS)
  • K-Swiss (NASDAQ:KSWS)
  • Nike (NYSE:NKE)

Related Foolishness:

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Tim Beyers, ranked 955 out of more than 21,300 players in CAPS, didn't own shares in any of the companies mentioned in this article at the time of publication. Get the skinny on all the stocks he owns by checking Tim's Fool profile. The Motley Fool's disclosure policy always adds up.