On Feb. 15, quick-turnaround electronics component manufacturer TTM Technologies
- This period includes two months of operations from the printed circuit board division of Tyco
(NYSE:TYC) , which TTM acquired last fall. It's an immediate shot in the arm, revenue-wise, but the margins took a severe hit. - Part of the margin letdown results from direct acquisition costs, but the Tyco group always worked in some lower-margin fields than what TTM is used to, such as backplane assembly. TTM's operational discipline should rub off on the new addition over time, but this was a rough quarter.
- It's not as bad as it looks at first glance, though. The year-ago quarter included an unusual $0.31 per-share gain from a revaluation of the company's tax assets. On the other hand, there was a higher than usual tax provision this quarter -- more than 45% of pre-tax income -- to account for higher than expected tax rates for some of the acquired operations.
(Figures in millions, except per-share data)
Income Statement Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Sales |
$144.3 |
$63.1 |
128.5% |
Net Profit |
$4.9 |
$19.0 |
(74.2%) |
EPS |
$0.12 |
$0.46 |
(73.9%) |
Diluted Shares |
42.4 |
41.8 |
1.4% |
Get back to basics with a look at the income statement.
Margin Checkup
Q4 2006 |
Q4 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
18.9% |
23.8% |
(5.0) |
Operating Margin |
7.8% |
17.5% |
(9.8) |
Net Margin |
3.4% |
30.2% |
(26.8) |
Margins are the earnings engine. See how they work.
Management Effectiveness
Q4 2006 |
Q4 2005 |
Change* |
|
---|---|---|---|
Return on Assets |
4.5% |
28.9% |
(24.4) |
Return on Equity |
6.9% |
32.5% |
(25.6) |
*Expressed in percentage points
See how management puts its financial tools to work.
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$70.7 |
$82.4 |
(14.2%) |
Accounts Rec. |
$125.7 |
$38.6 |
225.4% |
Inventory |
$67.0 |
$12.6 |
433.0% |
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Accounts Payable |
$40.0 |
$11.3 |
253.8% |
Long-Term Debt |
$141.5 |
$0.0 |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
We didn't get a cash flow statement this time. Curses!
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Cash Conversion Checkup
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Days in Inventory |
31.5 |
22.8 |
8.7 |
Days in Receivables |
53.3 |
55.6 |
(2.2) |
Days Payables Outstanding |
20.7 |
19.7 |
1.0 |
Cash Conversion Cycle |
64.1 |
58.7 |
5.5 |
Read up on cash conversion metrics.
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Related Foolishness:
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At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here.