On Feb. 27, TXU
- The electricity generation company's quarterly operational EPS grew by 36.4% to $1.20 as a result of improvements in contribution margin, lower operating costs, and a substantial buyback program that reduced diluted shares outstanding by 4.5%.
- Full-year operational EPS increased 66% to $5.55 per share for 2006. No wonder these guys are being bought out.
- Yep, on Monday management announced that the company has received a buyout offer from private equity fund managers Kohlberg Kravis Roberts & Co. and Texas Pacific Group.
- TXU is given a three-star rating in Motley Fool CAPS.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$2,375 |
$2,755 |
(13.8%) |
|
Net Profit* |
$556 |
$427 |
30.2% |
|
EPS* |
$1.20 |
$0.88 |
36.4% |
|
Diluted Shares |
463.0 |
485.0 |
(4.5%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
51.3% |
39.3% |
12.0 |
|
Operating Margin |
36.6% |
29.2% |
7.5 |
|
Net Margin |
19.8% |
15.0% |
4.7 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Rec. |
$959 |
$1,328 |
(27.8%) |
|
Inventory |
$383 |
$364 |
5.2% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$1,093 |
$1,026 |
6.5% |
|
Long-Term Debt |
$10,631 |
$11,332 |
(6.2%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
2006 |
2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$4,954 |
$2,793 |
77.4% |
|
Capital Expenditures |
$2,180 |
$1,047 |
108.2% |
|
Free Cash Flow |
$2,774 |
$1,746 |
58.9% |
Find out why Fools always follow the money.
Related Foolishness:
TXU and Duke Energy are Motley Fool Income Investor recommendations. Want to get paid to invest? Analyst James Early and other investors like you can show you how with a free trial to Income Investor.
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.
