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

*Expressed in percentage points.
** 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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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, Jim Mueller had no positions in any company mentioned. Fool rules are here.