On April 18, industrial supply company Applied Industrial Technologies
- Cost cutting and share buybacks turned marginal sales growth into pretty nice earnings growth.
- The company didn't say much in the press release, but it did reiterate its guidance for earnings and sales of $1.82 per share and $2.04 billion, respectively, for the year.
- Based on the volume of recommendations in Motley Fool CAPS, I am guessing most of you don't know much about the industrial supply sector. Here's a taste: Grainger
(NYSE:GWW) is a three-star stock, while Applied Industrial Technologies, MSM Industrial Direct(NYSE:MSM) , and Fastenal(NASDAQ:FAST) are all five-star stocks. Find out why Fools in the community intelligence database love them by checking out CAPS today.
(Figures in millions, except per-share data)
Income Statement Highlights
Q3 2007 |
Q3 2006 |
Change |
|
---|---|---|---|
Sales |
$521.1 |
$497.2 |
4.8% |
Net Profit |
$21.7 |
$20.0 |
8.5% |
EPS |
$0.49 |
$0.43 |
14.0% |
Diluted Shares |
44.4 |
45.9 |
(3.3%) |
Get back to basics with the income statement.
Margin Checkup
Q3 2007 |
Q3 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
27.0% |
27.5% |
(0.5) |
Operating Margin |
6.5% |
6.5% |
0.0 |
Net Margin |
4.2% |
4.0% |
0.2 |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q3 2007 |
Q3 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$85.0 |
$76.2 |
11.5% |
Accounts Rec. |
$250.3 |
$236.0 |
6.1% |
Inventory |
$207.0 |
$208.1 |
(0.5%) |
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
---|---|---|---|
Accounts Payable |
$99.7 |
$102.9 |
(3.1%) |
Total Debt |
$83.1 |
$76.4 |
8.8% |
The balance sheet reflects the company's health.
Cash Flow Highlights
YTD 2007 |
YTD 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
$32.8 |
$11.4 |
187.7% |
Capital Expenditures |
$8.1 |
$6.8 |
19.1% |
Free Cash Flow |
$24.7 |
$4.6 |
437.0% |
Free cash flow is a Fool's best friend.
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 check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, retail editor David Meier did not own stock in any of the companies mentioned. Fool rules are here.