Mine Safety Shines: Fool by Numbers

On Feb. 27, health and safety equipment maker Mine Safety Appliances (NYSE: MSA  ) released fourth-quarter earnings for the period ended Dec. 31.

• Sales in the U.S., which account for about 50% of total revenues, slipped 8% because of lower military and fire service sales. That was offset by strong growth in the European and international segments.
• In Tuesday's down market, the stock rose more than 7% on the earnings news.
• After the stock gained 125%, Tom Gardner issued a sell recommendation in Motley Fool Hidden Gems last November because of slowing growth relative to the stock's valuation.
• The stock is stuck with a two-star rating in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q4 2006	Q4 2005	Change
Sales	$258.9	$242.8	6.6%
Net Profit	$19.5	$24.2	(19.4%)
EPS	$0.53	$0.65	(18.5%)

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

Margin Checkup

	Q4 2006	Q4 2005	Change*
Gross Margin	34.5%	38.2%	(3.7)
Operating Margin	9.0%	15.2%	(6.2)
Net Margin	7.5%	10.0%	(2.4)

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q4 2006	Q4 2005	Change
Cash + ST Invest.	$61.3	$44.8	36.8%
Accounts Rec.	$174.6	$169.4	3.0%
Inventory	$137.2	$119.7	14.6%

Liabilities	Q4 2006	Q4 2005	Change
Accounts Payable	$39.4	$40.9	(3.6%)
Long-Term Debt	$112.5	$45.8	145.5%

Learn the ways of the balance sheet.

Cash Flow Highlights

We'd like to see a cash flow statement, but managers keep the details hidden.

Find out why Fools always follow the money.

Related Foolishness:

• Foolish Forecast: Plumbing Mine Safety
• Shocking Results at Medtronic
• St. Jude's Juiced-Up Q4

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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.