On May 2, 2006, Timberland (NYSE:TBL) released Q1 2006 earnings for the period ended March 31, 2006.
- Margins declined on account of increased costs of raw materials and operating expenses.
- The balance sheet showed cash decline and inventory increase faster than sales.
- Sales declined slightly because of foreign currency exchange rates, and earnings tumbled on increased operating costs and spending for international expansion.
- Free cash flow was negative.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q1 2006 |
Q1 2005 |
% Change | |
|---|---|---|---|---|
|
Sales |
$352,280 |
$349,811 |
$354,211 |
(1.2%) |
|
Net Profit |
-- |
$29,187 |
$42,247 |
(30.9%) |
|
EPS |
$0.45 |
$0.45 |
$0.61 |
(26.2%) |
|
Diluted Shares |
-- |
64,996 |
69,026 |
(5.8%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2006 |
Q1 2005 |
Change | |
|---|---|---|---|
|
Gross Margin |
50.34% |
52.84% |
(2.50) |
|
Op. Margin |
12.08% |
17.48% |
(5.40) |
|
Net Margin |
8.34% |
11.93% |
(3.58) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q1 2006 |
Q1 2005 |
% Change |
|---|---|---|---|
|
Cash+ ST Invest. |
$125,284 |
$203,715 |
(38.5%) |
|
Accounts Rec. |
$192,087 |
$187,523 |
2.4% |
|
Inventory |
$174,945 |
$161,027 |
8.6% |
|
Liabilities |
Q1 2006 |
Q1 2005 |
% Change |
|---|---|---|---|
|
Accounts Pay. |
$70,025 |
$53,009 |
32.1% |
|
Long-Term Debt. |
-- |
-- |
NA |
Cash Flow Highlights
|
Q1 2006 |
Q1 2005 |
% Change | |
|---|---|---|---|
|
Cash From Ops |
$(59,738) |
$(64,823) |
NA |
|
Capital Expend. |
$5,528 |
$4,334 |
27.5% |
|
Free Cash Flow |
$(65,266) |
$(69,157) |
NA |
Find out why Fools always follow the money.
Related Companies:
- Kenneth Cole Productions (NYSE:KCP)
- Skechers (NYSE:SKX)
- Stride Rite (NYSE:SRR)
- Wolverine World Wide (NYSE:WWW)
- Nike (NYSE:NKE)
- Deckers Outdoor (NASDAQ:DECK)
Related Foolishness:
- Foolish Fundamentals: Margins
- Foolish Fundamentals: The Income Statement
- Timberland's Stuck in the Mud
Deckers Outdoor is a Motley Fool Hidden Gems pick. Take the newsletter dedicated to small caps for a 30-day free test-drive.
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.
At the time of publication, Nathan Parmelee had positions in Kenneth Cole Productions. Fool rules are here.
