On May 29, Borders Group
- Revenue increased by 2.1%; domestic revenue increased 1.4%, and international revenue grew 22%.
- Rising promotional discounts, less sales across which to spread occupancy costs, and some non-operating charges caused the gross margin to decline 90 bps.
- Moving further down the income statement, the net loss, on a GAAP basis, increased to $35.9 million as selling and general expenses increased.
- Booksellers ain't gettin' much love from the Motley Fool CAPS community. Inside Value recommendation Borders has a one-star ranking, our lowest, and Barnes & Noble
(NYSE:BKS) only has two stars. Have an opinion? Bring it to CAPS.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$885.8 |
$867.8 |
2.1% |
|
Net Profit |
($35.9) |
($20.2) |
N/A |
|
EPS* |
($0.61) |
($0.31) |
N/A |
|
Basic Shares |
58.6 |
64.4 |
(9%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
22.2% |
23.1% |
(0.9) |
|
Operating Margin |
(5.5%) |
(3.1%) |
(2.2) |
|
Net Margin |
(4.1%) |
(2.4%) |
(1.7) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$83.9 |
$47.0 |
78.5% |
|
Inventory |
$1,522.3 |
$1,457.9 |
4.4% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$593.2 |
$616.6 |
(3.8%) |
|
Total Debt |
$722.8 |
$442.8 |
(63.2%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
Someone must have used the cash flow statement as a bookmark. They'll return it to management in time for the 10-Q.
Free cash flow is a Fool's best friend.
Related Foolishness:
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