On Aug. 15, large-format display designer Daktronics
- That revenue and profit growth belongs on the big screen, doesn't it?
- Management says that economies of scale are kicking in to widen the gross margins. In fact, that's part of the revenue growth story, too, because Daktronics can now afford more aggressive contract pricing without losing profitability.
- The infrastructure upgrades behind all of this didn't come cheap, though, as the cash balance and new debt load plainly show.
- Owner earnings went south even while free cash flow effectively moved to Canada, because the owner earnings metric doesn't care about the large swings in working capital balances the company saw last quarter.
(Figures in thousands, except per-share data)
Income Statement Highlights
Q1 2008 |
Q1 2007 |
Change |
|
---|---|---|---|
Sales |
$120,923 |
$92,153 |
31.2% |
Net Profit |
$7,111 |
$4,987 |
42.6% |
EPS |
$0.17 |
$0.12 |
41.7% |
Diluted Shares |
41,260 |
41,082 |
0.4% |
Get back to basics with the income statement.
Margin Checkup
Q1 2008 |
Q1 2007 |
Change* |
|
---|---|---|---|
Gross Margin |
30.5% |
28.7% |
1.8 |
Operating Margin |
9.3% |
7.1% |
2.2 |
Net Margin |
5.9% |
5.4% |
0.5 |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q1 2008 |
Q1 2007 |
Change |
---|---|---|---|
Cash + ST Invest. |
$7,161 |
$26,327 |
(72.8%) |
Accounts Rec. |
$57,829 |
$72,011 |
(19.7%) |
Inventory |
$50,807 |
$42,622 |
19.2% |
Liabilities |
Q1 2008 |
Q1 2007 |
Change |
---|---|---|---|
Accounts Payable |
$37,506 |
$27,556 |
36.1% |
Long-Term Debt |
$1,564 |
$230 |
580.0% |
The balance sheet reflects the company's health.
Cash Flow Highlights
Q1 2008 |
Q1 2007 |
Change |
|
---|---|---|---|
Cash From Ops. |
$19,483 |
$6,477 |
200.8% |
Capital Expenditures |
$13,343 |
$7,450 |
79.1% |
Free Cash Flow |
$6,140 |
($973) |
N/A |
($1,648) |
$333 |
N/A |
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, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here.