On Friday, Jan. 26, Fortune Brands (NYSE:FO) released fourth-quarter and year-end results for the period ended Dec. 31, 2006. Here are the quick-and-dirty details for the quarter.
- See the full analysis on Fortune Brands here.
- Sales grew 16.2% to $2.3 billion, including acquired brands.
- Total diluted earnings grew 38.5%, due in part to a $0.31-per-share tax benefit that was offset by a $0.08-per-share restructuring charge. Excluding these one-time items, earnings grew 14%.
- Free cash flow came in at $294 million, slightly above reported net income.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$2,240 |
$2,276 |
$1,959 |
16.2% |
|
Net Profit |
-- |
$252 |
$176 |
43.1% |
|
EPS |
$1.35 |
$1.62 |
$1.17 |
38.5% |
|
Diluted Shares |
-- |
156 |
151 |
3.3% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
49.60% |
45.88% |
3.72 |
|
Operating Margin |
16.75% |
15.58% |
1.17 |
|
Net Margin |
11.06% |
8.98% |
2.08 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$171 |
$94 |
82.4% |
|
Accounts Rec. |
$1,213 |
$1,116 |
8.7% |
|
Inventory |
$2,166 |
$1,663 |
30.2% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Long-Term Debt |
$5,035 |
$4,890 |
3.0% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$386 |
$198 |
$188 |
|
Capital Expenditures |
$92 |
$65 |
$27 |
|
Free Cash Flow |
$294 |
$133 |
$161 |
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Comparable companies:
- Diageo (NYSE:DEO)
- Brown-Forman (NYSE:BF-B) (NYSE:BF-A)
- Constellation Brands (NYSE:STZ)
- Masco (NYSE:MAS)
- Callaway Golf (NYSE:ELY)
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Fool contributor Ryan Fuhrmann is long shares of Diageo but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.