On Sept. 19, auto-parts retailer and Motley Fool Inside Value recommendation AutoZone (NYSE:AZO) released FY 2006 earnings for the period ended Aug. 26, 2006. Here's a summary of the good stuff from the press release and the conference call.

  • The company continues to be a cash-making machine, generating $386 million in operating cash flow during the fourth quarter and $822.3 million for the year.

  • Surprise, surprise! The company also continues to buy back shares, repurchasing $6.2 million worth at an average price of $93 per share.

  • AutoZone ended the year with $54 million less in working capital.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

FY 2006

FY 2005

Change

Sales

$5,982

$5,948

$5,711

4.2%

Net Profit

--

$569

$571

(0.3%)

EPS

$7.39

$7.50

$7.18

4.5%

Diluted Shares

--

76

80

(4.5%)



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

Margin Checkup

FY 2006

FY 2005

Change*

Gross Margin

49.4%

48.9%

0.50

Operating Margin

16.98%

17.08%

(0.10)

Net Margin

9.57%

10%

(0.43)

*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.

$92

$115

(20.4%)

Accounts Rec.

n/a

$118

n/a

Inventory

$1,847

$1,664

11%


Liabilities

FY 2006

FY 2005

Change

Accounts Payable

$1,700

$1,540

10.4%

Long-Term Debt

$1,857

$1,862

(0.2%)



Learn the ways of the balance sheet.

Cash Flow Highlights

FY 2006

FY 2005

Change

Cash From Ops.

$822

$648

26.9%

Capital Expenditures

$264

$284

(7%)

Free Cash Flow

$559

$365

53.2%



Find out why Fools always follow the money.

Related Companies:

  • Advanced Auto (NYSE:AAP)
  • Pep Boys (NYSE:PBY)
  • O'Reilly Automotive (NASDAQ:ORLY)
  • Wal-Mart (NYSE:WMT)

Related Foolishness:

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.

AutoZone and Wal-Mart are both Motley Fool Inside Value picks. Find more of Wall Street's best bargains with a free 30-day trial subscription .

At the time of publication, Fool editor David Meier did not hold any positions in any of the companies mentioned. Fool rules are here.