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) |
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:
- Foolish Fundamentals: Margins
- Foolish Fundamentals: Enterprise Value
- Foolish Fundamentals: Free Cash Flow
- Foolish Fundamentals: Valuation
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.
