On Oct. 30, ATM and voting machine maker Diebold (NYSE:DBD) released third-quarter earnings for the period ended Sept. 30, 2006.

  • Total sales increased 17.4% because of strength of security products and service revenue.
  • Overseas operations saw significant growth, particularly in the Europe, Middle East, and Africa segment, which was up more than 22%.
  • Gross margins increased 120 basis points to 24.9% because of improved pricing in North America.
  • Free cash flow increased by $108 million over last year, as a result of increases in collecting receivables.
  • Diebold carries a one-star rating in Motley Fool CAPS.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$683,060

$730,739

$622,333

17.4%

Net Profit

--

$29,542

$26,432

11.8%

EPS

$0.43

$0.45

$0.37

21.6%

Diluted Shares

66,020

70,812

(6.8%)



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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

24.92%

23.76%

1.16

Operating Margin

6.62%

4.30%

2.32

Net Margin

4.04%

4.25%

(0.21)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$281,555

$202,620

39.0%

Accounts Rec.

$589,403

$583,450

1.0%

Inventory

$427,204

$384,030

11.2%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$151,448

$149,860

1.1%

Long-Term Debt

$622,507

$380,100

63.8%

Learn the ways of the balance sheet.

Cash Flow Highlights

Q3 2006

Q3 2005

Change

Cash From Ops.

$79,939

($27,920)

N/A

Capital Expenditures

$14,636

$15,383

(4.9%)

Free Cash Flow

$65,303

($43,303)

N/A



Find out why Fools always follow the money.

Related Companies:

  • NCR (NYSE:NCR)
  • IBM (NYSE:IBM)
  • Tyco (NYSE:TYC)

Related Foolishness:

Diebold and Tyco are recommendations of Motley Fool Inside Value. For a fun new way to do research on stocks, check out CAPS, the Fool's new investment community.

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, Fool contributor Rich Duprey had no positions in any of the companies mentioned in this article. Fool rules are here.