On August 8, Jack in the Box (NYSE:JBX) released Q3 2006 earnings for the period ending July 9.
- Both revenues and earnings per share came in well ahead of estimates. EPS was helped by a penny by a lower share count.
- Accounts receivable grew slightly faster than revenue. Don't worry yet -- just keep an eye on it going forward.
- Cash flow improved dramatically. Even with store renovations increasing capital expenditures, free cash flow was healthy.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$642,820 |
$648,988 |
$589,303 |
10.1% |
|
Net Profit |
-- |
$27,841 |
$23,886 |
16.6% |
|
EPS |
$0.66 |
$0.77 |
$0.66 |
16.7% |
|
Diluted Shares |
-- |
36,018 |
36,403 |
(1.1%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin** |
69.39% |
67.70% |
1.69 |
|
Operating Margin |
6.92% |
6.48% |
0.44 |
|
Net Margin |
4.29% |
4.05% |
0.24 |
** Based on gross profit defined as company-owned sales less cost of food and drink.
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$191,523 |
$98,636 |
94.2% |
|
Accounts Rec. |
$28,608 |
$25,679 |
11.4% |
|
Inventory |
$40,964 |
$39,503 |
3.7% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$59,547 |
$55,016 |
8.2% |
|
Long-Term Debt |
$284,105 |
$291,973 |
(2.7%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$55,237 |
$20,878 |
164.6% |
|
Capital Expenditures |
$42,131 |
$26,268 |
60.4% |
|
Free Cash Flow |
$13,106 |
($5,390) |
N/A |
Find out why Fools always follow the money.
Related Companies:
- Burger King (NYSE:BKC)
- McDonalds (NYSE:MCD)
- Wendy's (NYSE:WEN)
- Yum! Brands (NYSE:YUM)
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At the time of publication, Jim Mueller had no positions in any company mentioned. Fool rules are here.
