On Nov. 21, Dollar Tree Stores (NASDAQ:DLTR) released third-quarter earnings for the period ended Oct. 28.

  • The 14.3% increase in net sales to $910.4 million was due to the 4% increase in same-store sales.
  • Dollar Tree opened 50 stores, closed 14 stores, and expanded or relocated 28 stores in the third quarter.
  • Twenty-four out of 26 investors think this Inside Value recommendation will outperform the S&P 500 in our new Motley Fool CAPS rating service.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$910.4

$796.8

14.3%

Net Profit

$32.5

$31.1

4.5%

EPS

$0.32

$0.29

10.3%

Diluted Shares

102.8

107.6

(4.5%)



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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

33.8%

34.7%

(0.9)

Operating Margin

5.9%

6.6%

(0.7)

Net Margin

3.6%

3.9%

(0.3)

*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.

$118.9

$129.8

(8.4%)

Inventory

$793.8

$750.4

5.8%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$230.0

$211.4

8.8%

Long-Term Debt

$250.0

$250.0

0%



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$90.7

$124.0

(26.9%)

Capital Expenditures

$139.9

$114.2

22.5%

Free Cash Flow

($49.2)

$9.8

N/A



Find out why Fools always follow the money.

Related Companies:

  • Dollar General (NYSE:DG)
  • Family Dollar Stores (NYSE:FDO)
  • 99 Cents Only Stores (NYSE:NDN)

Related Foolishness:

Dollar Tree is a Motley Fool Inside Value recommendation, and Family Dollar is a Stock Advisor selection.

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. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.