On Tuesday, Sept. 12, filtration specialist Pall
- While net earnings remained nearly flat over the previous year, cash flow is a very different story. The company clearly had no trouble funding its $52.4 million of dividends paid out during fiscal 2006.
- Gross margins contracted noticeably, and management has made price increases a focus of its current strategy to counteract this trend. Given the lesser shrinkage further down the income statement, starting from a wider gross take should produce impressive results in the future.
- Given the healthy cash balance sheet and positive cash flow, it's curious to see an increased debt load with $152 million of new borrowings added in Q4. Does the company have expensive plans we don't know about?
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
FY 2006 |
FY 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$1,980 |
$2,017 |
$1,902 |
6.0% |
|
Pro Forma Net Profit |
-- |
$169.7 |
$167.7 |
1.2% |
|
Pro Forma EPS |
$1.32 |
$1.35 |
$1.34 |
0.7% |
|
Diluted Shares |
125.8 |
125.6 |
0.2% |
Get back to basics with a look at the income statement.
Margin Checkup
|
FY 2006 |
FY 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
46.81% |
48.54% |
(1.73) |
|
Operating Margin |
12.18% |
12.92% |
(0.74) |
|
Net Margin |
8.41% |
8.82% |
(0.41) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
FY 2006 |
FY 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$318 |
$165 |
92.7% |
|
Accounts Rec. |
$518 |
$494 |
4.8% |
|
Inventory |
$408 |
$366 |
11.6% |
|
Liabilities |
FY 2006 |
FY 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$467 |
$432 |
8.2% |
|
Long-Term Debt |
$640 |
$510 |
25.4% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
FY 2006 |
FY 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$219 |
$162 |
35.3% |
|
Capital Expenditures |
$96 |
$86 |
11.3% |
|
Free Cash Flow |
$123 |
$75 |
62.6% |
Find out why Fools always follow the money.
Related Companies:
-
Baxter International
(NYSE:BAX) -
CLARCOR
(NYSE:CLC) -
Donaldson
(NYSE:DCI) -
Emdeon
(NASDAQ:HLTH) -
Millipore
(NYSE:MIL) -
Flanders
(NASDAQ:FLDR)
Related Foolishness:
- Pall looked clogged last quarter.
- Donaldson is a pricey issue.
- So is CLARCOR, for that matter.
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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.
At the time of publication, Fool contributor Anders Bylund held no position in any company mentioned, though his house is full of Flanders air filters. Fool rules are here.
