On Jan. 30, synthetic-fuel enterprise Headwaters (NYSE:HW) released first-quarter earnings for the period ended Dec. 31, 2006.

  • Net sales fell 2%. The downturn in residential housing and remodeling hurt the construction materials segment.
  • Operating margins decreased, primarily because of lower fixed-cost absorption and increased raw material costs.
  • Construction of Headwaters' ethanol manufacturing facility should begin during the March 2007 quarter.
  • Headwaters carries a four-star rating in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$274.9

$280.5

(2.0%)

Net Profit

$17.0

$28.3

(40.0%)

EPS

$0.37

$0.60

(38.3%)

Diluted Shares

48.4

48.6

(0.5%)



Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

29.1%

33.6%

(4.5)

Operating Margin

12.3%

17.9%

(5.6)

Net Margin

6.2%

10.1%

(3.9)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$54.7

$24.5

123.4%

Accounts Rec.

$118.5

$149.7

(20.8%)

Inventory

$65.5

$64.0

2.4%


Q1 2007

Q1 2006

Change

Accounts Payable

$28.3

$39.5

(28.3%)

Long-Term Debt

$585.0

$598.4

(2.2%)



Learn the ways of the balance sheet.

Cash Flow Highlights
No data available. Boo! Hiss!

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Related Companies:

  • Cemex (NYSE:CX)
  • Carbo Ceramics (NYSE:CRR)
  • AAON (NASDAQ:AAON)
  • Arch Coal (NYSE:ACI)

Related Foolishness:

Headwaters is a Motley Fool Rule Breakers recommendation. Fool co-founder David Gardner and his team are always keeping their eyes out for groundbreaking companies. Full access to Rule Breakers is free for 30 days. Cemex is a Stock Advisor recommendation.

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.