On Sept. 25, construction machinery manufacturer JLG Industries (NYSE:JLG) released full-year earnings for the 2006 fiscal year, ended July 31, 2006.
- Cash flow is decreasing year over year, even as net profit skyrockets. That could be a warning sign, although there is still a way to go before free cash flow goes negative.
- Of that net income, $14.5 million came from the sale of the Gradall excavation machines product line. The rest of the bottom-line improvement trickled down all the way from an improved gross-margin performance.
- Cash on hand is growing nicely while the company pays down long-term debts, accounts-payable growth is outpacing receivables in a show of tighter control over cash-cycle management, and sales are growing faster than inventories. In short, that's a darn healthy balance sheet, son.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
FY 2006 |
FY 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$2,250 |
$2,289.4 |
$1,735.0 |
32.0% |
|
Net Profit |
-- |
$149.3 |
$57.2 |
161.2% |
|
EPS |
$1.29 |
$1.40 |
$0.60 |
133.3% |
|
Diluted Shares |
106.5 |
95.6 |
11.4% |
Get back to basics with a look at the income statement.
Margin Checkup
|
FY 2006 |
FY 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
19.35% |
16.56% |
2.79 |
|
Operating Margin |
11.49% |
6.93% |
4.56 |
|
Net Margin |
6.52% |
3.30% |
3.22 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets | FY 2006 | FY 2005 | Change |
|---|---|---|---|
Cash + ST Invest. | $328.1 | $223.6 | 46.7% |
Accounts Rec. | $445.6 | $419.9 | 6.1% |
Inventory | $212.9 | $169.1 | 25.9% |
Liabilities | FY 2006 | FY 2005 | Change |
|---|---|---|---|
Accounts Payable | $233.7 | $200.3 | 16.7% |
Long-Term Debt | $207.4 | $224.2 | (7.5%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
FY 2006 | FY 2005 | Change | |
|---|---|---|---|
Cash From Ops. | $118.8 | $142.4 | (16.6%) |
Capital Expenditures | $24.8 | $10.6 | 135.0% |
Free Cash Flow | $93.9 | $131.8 | (28.8%) |
Find out why Fools always follow the money.
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- MSC Industrial Direct (NYSE:MSM)
- Alamo Group (NYSE:ALG)
- Gehl (NASDAQ:GEHL)
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- Deere (NYSE:DE)
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At the time of publication,Fool contributorAnders Bylundhad positions in none of these fine industrial equipment companies, and he doesn't know how to operate an excavator. Fool rules arehere.
