Headwaters' Head Stays Above Water: Fool by Numbers

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:

• Heavy Headwaters
• Headwaters' Uncertain Heading: Fool by Numbers
• The Biggest Economic Opportunity of This Century!

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.