On Nov. 14, diversified consumer-goods producer Spectrum Brands
- Spectrum took a $433 million charge (and added $8.05 of operational costs per share on a GAAP basis) for re-evaluating its goodwill balances. The writedown was described as "related to the value of certain trade names and goodwill carried on the company's books."
- Excluding that charge, the company saw wider losses on higher sales. Three out of four reportable segments increased both their top and bottom lines, but weak European sales and profits dragged the results down overall.
- See the full-year fiscal 2006 numbers here.
- Spectrum Brands is a two-star CAPS stock with a very light following. Add your insights on the company here.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$597 |
$608.4 |
$587.6 |
3.5% |
|
Net Profit Continuing Ops. |
-- |
($6.2) |
($3.8) |
(63.2%) |
|
EPS |
$0.06 |
($0.13) |
($0.08) |
(62.5%) |
|
Diluted Shares |
49.5 |
49.0 |
1.0% |
Get back to basics with a look at the income statement.
Margin Checkup
Q4 2006 | Q4 2005 | Change* | |
|---|---|---|---|
Gross Margin | 37.61% | 37.12% | 0.49 |
Operating Margin | 1.61% | 5.58% | (3.97) |
Net Margin | (1.02%) | (0.65%) | (0.37) |
Net and operating results exclude a $433 million goodwill writedown charge.
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets | Q4 2006 | Q4 2005 | Change |
|---|---|---|---|
Cash + ST Invest. | $28.4 | $29.9 | (4.9%) |
Accounts Rec. | $329.3 | $362.4 | (9.1%) |
Inventory | $460.7 | $451.6 | 2.0% |
Liabilities | Q4 2006 | Q4 2005 | Change |
|---|---|---|---|
Total Debt | $2,277.2 | $2,307.3 | (1.3%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
Management declined to hand out complete cash flow data. Egad!
Find out why Fools always follow the money.
Inventory Management Checkup
Q4 2006 | Q4 2005 | Change | |
|---|---|---|---|
Days in Inventory | 109.3 | 87.2 | 22.0 |
Days in Receivables | 54.4 | 48.4 | 6.0 |
Read up on cash conversion metrics.
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Related Foolishness:
- Foolish Forecast: Spectrum Brands Looking Pale
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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 checkFool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributorAnders Bylund had no position in any company mentioned.
