Mueller Water Leaks: Fool by Numbers
By
Motley Fool Contributors
November 7, 2007
|
On Nov. 5, Mueller Water (NYSE: MWA) (NYSE: MWA-B) released fourth-quarter earnings for the period ended Sept. 30.
- The soft residential construction market led to a 8.3% decrease on the top line.
- The revenue decrease contributed to a 310-basis-point drop-off in operating margin.
- Mueller Water is rated four stars in our Motley Fool CAPS investor-intelligence database. Former parent and fellow Motley Fool Hidden Gems recommendation Walter Industries (NYSE: WLT) also sports an impressive four-star rating.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q4 2007
|
Q4 2006
|
Change
|
|
Sales
|
$474.9
|
$518.1
|
(8.3%)
|
|
Net Profit
|
$14.6
|
$16.9
|
(13.6%)
|
|
EPS
|
$0.13
|
$0.15
|
(13.3%)
|
|
Diluted Shares
|
115.5
|
114.7
|
0.7%
|
Get back to basics with the income statement.
Margin Checkup
|
Q4 2007
|
Q4 2006
|
Change*
|
|
Gross Margin
|
24.9%
|
26.1%
|
(1.2)
|
|
Operating Margin
|
10.7%
|
13.8%
|
(3.1)
|
|
Net Margin
|
3.1%
|
3.3%
|
(0.2)
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
Q4 2007
|
Q4 2006
|
Change
|
|
Cash + ST Invest.
|
$87.3
|
$81.4
|
7.2%
|
|
Accounts Rec.
|
$302.1
|
$322.9
|
(6.4%)
|
|
Inventory
|
$453.5
|
$454.6
|
(0.2%)
|
|
Liabilities
|
Q4 2007
|
Q4 2006
|
Change
|
|
Accounts Payable
|
$100.7
|
$129.9
|
(22.5%)
|
|
Long-Term Debt
|
$1,094.3
|
$1,118.3
|
(2.1%)
|
The balance sheet reflects the company's health.
Cash Flow Highlights
|
FY 2007
|
FY 2006
|
Change
|
|
Cash From Ops.
|
$159.2
|
$107.6
|
48%
|
|
Capital Expenditures
|
$88.3
|
$71.1
|
24.2%
|
|
Free Cash Flow
|
$70.9
|
$36.5
|
94.2%
|
Free cash flow is a Fool's best friend.
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