On Feb. 28, StarTek
- Quarterly EPS comparability was a bit skewed by the sale of business units. Reported diluted earnings per share was even at $0.30; diluted earnings per share from continuing operations (net of discontinued/sold businesses) rose $0.01 to $0.30 from $0.29.
- Margins still took a hit in the fourth quarter, but management says that general and administrative expenses were cut from 14.5% of revenue in the first quarter to 12.1% by the fourth quarter. That's at least something. (Find out why.)
- StarTek is also taking steps to clean up its balance sheet. For example, debt fell by 30%.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q4 2005 |
Q4 2004 |
% Change |
|
|---|---|---|---|---|
|
Sales |
N/A |
$58,165 |
$58,045 |
+0.2% |
|
Net Profit |
-- |
$4,397 |
$4,415 |
-0.4% |
|
EPS |
N/A |
$0.30 |
$0.30 |
0.0% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2005 |
Q4 2004 |
Change |
|
|---|---|---|---|
|
Gross Margin |
21.64% |
21.78% |
-0.14% |
|
Op. Margin |
9.55% |
10.53% |
-0.98% |
|
Net Margin |
7.56% |
7.61% |
-0.05% |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2005 |
Q4 2004 |
% Change |
|---|---|---|---|
|
Cash+ ST Invest. |
$45,593 |
$39,394 |
+15.7% |
|
Inventory |
$- |
$- |
N/A |
|
Accounts Rec. |
$40,612 |
$49,254 |
-17.5% |
|
Liabilities |
|||
|---|---|---|---|
|
Long-Term Debt |
$5,650 |
$8,113 |
-30.4% |
|
Accounts Pay. |
$4,744 |
$7,190 |
-34.0% |
Cash Flow Highlights
|
Q4 2005 |
Q4 2004 |
% Change |
|
|---|---|---|---|
|
Cash From Ops |
$45,459 |
$23,099 |
+96.8% |
|
Capital Expend. |
$15,365 |
$19,465 |
-21.1% |
|
Free Cash Flow |
$30,094 |
$3,634 |
+728.1% |
Find out why Fools always follow the money.
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Related Foolishness:
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- Here's why StarTek's dividend is dangerous.
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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.
Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Fool profile. The Motley Fool has an ironclad disclosure policy.
