On July 27 2006, Motley Fool Rule Breakers selection Headwaters
- Both sales and earnings came in below estimates, as the impact of a sharp reduction in Section 29 tax credits began to take effect.
- Guidance also took a hit. Headwaters now says that unless legislative action is taken, it will earn between $2.00 and $2.15 per stub for the full year.
- Headwaters also cancelled a $150 million debt offering, because of what it says were unfavorable market conditions.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$302,350 |
$295,929 |
$308,729 |
(4.1%) |
|
Net Profit |
-- |
$27,407 |
$36,458* |
(24.8%) |
|
EPS |
$0.59 |
$0.58 |
$0.78* |
(25.6%) |
|
Diluted Shares |
48,543 |
47,996 |
1.1% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change** |
|
|---|---|---|---|
|
Gross Margin |
32.04% |
39.42% |
(7.38) |
|
Operating Margin |
16.64% |
18.53%* |
(1.89) |
|
Net Margin |
9.26% |
11.81%* |
(2.55) |
** Change reported in percentage points.
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$59,663 |
$10,878 |
448.5% |
|
Accounts Rec. |
$144,086 |
$162,296 |
(11.2%) |
|
Inventory |
$72,879 |
$61,749 |
18% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$32,964 |
$33,348 |
(1.2%) |
|
Total Debt |
$595,301 |
$674,338 |
(11.7%) |
Learn the ways of the balance sheet.
Cash Flow Checkup
No cash flow statement provided. (Whatever.)
Find out why Fools always follow the money.
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Related Foolishness:
- I used to think there were 29 reasons to buy Headwaters.
- Now, I wonder if it's in need of a bailout.
- Check the numbers from last quarter.
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.
Headwaters is a Motley Fool Rule Breakers selection. Ask us for an all-access pass to the service to get a closer look at the four multibagger stocks the team has uncovered. Go ahead, you've got nothing to lose. Your pass is free and it's good for 30 days.
Fool contributor Tim Beyers owns shares of Headwaters. You can find out what else is in his portfolio by checking Tim's Fool profile. The Motley Fool has an ironclad disclosure policy.
