On July 11, Chaparral Steel (NASDAQ:CHAP) released fourth-quarter earnings for the period ended May 31.
- The company has agreed to be acquired by Gerdau Ameristeel (NYSE:GNA) for $4.2 billion, which shakes out to $86 a share.
- Strong performance in domestic and international markets pushed sales forward by 20.5% to $489 million.
- Our Motley Fool CAPS community seems to like Chaparral, giving it four stars out of a potential five. CAPS apparently favors steel in general, rating competitors Steel Dynamics (NASDAQ:STLD) and Nucor (NYSE:NUE) four and five stars, respectively.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q4 2007 |
Q4 2006 |
Change | |
|---|---|---|---|
|
Sales |
$488.7 |
$405.5 |
20.5% |
|
Net Profit |
$80.2 |
$56.1 |
42.9% |
|
EPS |
$1.65 |
$1.16 |
42.2% |
|
Diluted Shares |
48.3 |
47.3 |
2.1% |
Get back to basics with the income statement.
Margin Checkup
|
Q4 2007 |
Q4 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
29.3% |
25.7% |
3.7 |
|
Operating Margin |
26.9% |
23.4% |
3.6 |
|
Net Margin |
16.4% |
13.8% |
2.6 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q4 2007 |
Q4 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$443.4 |
$206.6 |
114.6% |
|
Accounts Rec. |
$190.5 |
$159.7 |
19.3% |
|
Inventory |
$206.8 |
$159.8 |
29.4% |
|
Liabilities |
Q4 2007 |
Q4 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$74.8 |
$50.0 |
49.7% |
|
Long-Term Debt |
$300.0 |
$300.0 |
0% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$273.5 |
$260.8 |
4.8% |
|
Capital Expenditures |
$22.2 |
$16.4 |
35.1% |
|
Free Cash Flow |
$251.3 |
$244.4 |
2.8% |
Free cash flow is a Fool's best friend.
Related Foolishness:
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