Armor's Profits Pierced: Fool by Numbers

On April 19, Armor Holdings (NYSE: AH), maker of military vehicles and armor, released first-quarter earnings for the period ended March 31.

• Though sales doubled, net profits fell, because the company's top executives were paid large bonuses.
• Those bonuses also lowered full-year earnings guidance by $0.51 per share, down to a range of $4.29 to $4.69.
• Our Motley Fool CAPS investors love the stock, assigning it a sterling five-star rating.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q1 2007	Q1 2006	Change
Sales	$889.2	$445.4	99.6%
Net Profit	$36.0	$41.4	(13%)
EPS	$0.94	$1.11	(15.3%)
Diluted Shares	38.3	37.2	3%

Get back to basics with the income statement.

Margin Checkup

	Q1 2007	Q1 2006	Change*
Gross Margin	18.5%	23.5%	(5.0)
Operating Margin	7.8%	14.8%	(7.0)
Net Margin	4.1%	9.3%	(5.3)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q1 2007	Q4 2006	Change
Cash + ST Invest.	$45.0	$40.0	12.5%

Liabilities	Q1 2007	Q4 2006	Change
Total Debt	$896.0	$767.0	16.8%

The balance sheet reflects the company's health.

Cash Flow Highlights

	Q1 2007	Q1 2006	Change
Cash From Ops.	($107.5)	$28.3	N/A
Capital Expenditures	$10.2	$9.2	10.6%
Free Cash Flow	($117.7)	$19.1	N/A

Free cash flow is a Fool's best friend.

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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. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.