On Jan. 8, OSI Restaurant Partners (NYSE:OSI) released third-quarter earnings for the period ended Sept. 30, 2006.

  • Revenue went up 8.9% to $950.6 million, but net income declined 41.4%, mainly because of impairment charges and an increase in interest costs.
  • Earnings per share declined by 39.5%, owing to the fall in net profit. This was slightly offset by a reduced number of outstanding diluted shares.
  • Back in November, OSI agreed to a private equity buyout.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$950.6

$872.9

8.9%

Net Profit

$17.3

$29.5

(41.4%)

EPS

$0.23

$0.38

(39.5%)

Diluted Shares

75.2

76.8

(2.2%)



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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

63.7%

63.3%

0.4

Operating Margin

2.8%

5.5%

(2.7)

Net Margin

1.8%

3.4%

(1.6)

*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.

$46.7

$41.8

11.5%

Accounts Rec.

$0.0

$0.0

N/A

Inventory

$80.2

$57.6

39.2%


Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$90.9

$70.9

28.1%

Long-Term Debt

$239.3

$110.1

117.4%



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$137.9

$187.3

(26.4%)

Capital Expenditures

$225.8

$215.2

4.9%

Free Cash Flow

($87.9)

($27.9)

N/A



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Related Foolishness:

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