On August 1, Blue Nile
- Repurchased 8.5% of outstanding shares; 5.8% figure below is a weighted average.
- Revenues and earnings per share (largely due to share repurchases) beat expectations.
- Negative investment in working capital as accounts payable growth has far outpaced receivable and inventory growth.
- Margins declined across the board. At the gross margin level this is product mix and at the operating margin level there are stock option expenses. Removing stock option expenses for comparisons shows healthy growth at the operating level.
(Figures in thousands, except per-share data)
Income Statement Highlights|
Avg. Est. |
Q2 2006 |
Q2 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$52,610 |
$56,916 |
$43,826 |
29.9% |
|
Net Profit |
-- |
$3,132 |
$2,793 |
12.1% |
|
EPS |
$0.13 |
$0.18 |
$0.15 |
20% |
|
Diluted Shares |
17,562 |
18,650 |
(5.8%) |
Get back to basics with a look at the income statement.
Margin Checkup|
Q2 2006 |
Q2 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
19.94% |
22.79% |
(2.85) |
|
Operating Margin |
6.33% |
8.68% |
(2.35) |
|
Net Margin |
5.50% |
6.37% |
(0.87) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights|
Assets |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$56,251 |
$81,310 |
(30.8%) |
|
Accounts Rec. |
$822 |
$656 |
25.3% |
|
Inventory |
$11,211 |
$8,849 |
26.7% |
|
Liabilities |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$27,682 |
$18,150 |
52.5% |
|
Long-Term Debt |
$0 |
$0 |
N/A |
Learn the ways of the balance sheet.
|
YTD 2006 |
YTD 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
($12,514) |
($12,387) |
N/A |
|
Capital Expenditures |
$1,182 |
$346 |
241.6% |
|
Free Cash Flow |
($13,696) |
($12,733) |
N/A |
Find out why Fools always follow the money.
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Related Foolishness:
- In a While, Blue Nile
- Foolish Fundamentals: Enterprise Value
- Foolish Fundamentals: Valuation
- Foolish Fundamentals: Return on Invested Capital
- Foolish Fundamentals: GAAP
Blue Nile is a Motley Fool Hidden Gems and a Motley Fool Rule Breakers selection. Check out either newsletter with a free 30-day trial .
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 held shares of Blue Nile, but no positions in any of the other companies mentioned. Fool rules are here.
