StarTek Caught Gazing in 2005: Fool by Numbers

On Feb. 28, StarTek (NYSE: SRT  ) released Q4 and full fiscal 2005 earnings for the period ending Dec. 31, 2005.

  • Full-year EPS comparability, as with quarterly, was a bit skewed by the sale of business units. Reported diluted EPS clocked in at $0.88, compared with $1.42 last year; income from continuing operations (net of discontinued/sold businesses) came in at $0.95, compared with $1.41 last year.
  • Cash flow ballooned during 2005. But much of the gain can be attributed to changes in working capital and asset sales, neither of which can be guaranteed in the future. Watch out, yield chasers.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

FY 2005

FY 2004

Change

Sales

N/A

$216,371

$221,906

(2.5%)

Net Profit

--

$12,860

$20,976

(38.7%)

EPS

N/A

$0.88

$1.42

-(38.0%)

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

Margin Checkup

FY 2005

FY 2004

Change

Gross Margin

22.71%

25.93%

(3.22%)

Op. Margin

9.57%

13.56%

(3.99%)

Net Margin

5.94%

9.45%

(3.51%)

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

FY 2005

FY 2004

Change

Cash+ ST Invest.

$45,593

$39,394

15.7%

Inventory

$-

$-

N/A

Accounts Rec.

$40,612

$49,254

(17.5%)


Liabilities

Long-Term Debt

$5,650

$8,113

-30.4%

Accounts Pay.

$4,744

$7,190

-34.0%


Cash Flow Highlights

FY 2005

FY 2004

Change

Cash From Ops

$45,459

$23,099

96.8%

Capital Expend.

$15,365

$19,465

(21.1%)

Free Cash Flow

$30,094

$3,634

728.1%

Find out why Fools always follow the money.

Related Companies:

  • Adecco SA (NYSE: ADO  )
  • Manpower (NYSE: MAN  )
  • MPS Group (NYSE: MPS  )
  • Paychex (Nasdaq: PAYX  )
  • Robert Half International (NYSE: RHI  )
  • Sykes Enterprises (Nasdaq: SYKE  )

For related Foolishness:

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 checkFool.comfor more of our in-depth discussion of what the numbers mean.

Fool contributorTim Beyersdidn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Foolprofile. The Motley Fool has an ironcladdisclosure policy.


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