On March 13, marketing services provider Alloy (NASDAQ:ALOY) released fourth-quarter earnings for the period ended Jan. 31.

  • A number of charges make it hard to analyze year-over-year changes. Last year's quarter included $34 million in goodwill impairment.
  • The company incurred a net loss of $660 million after debt conversion expenses of $2 million.
  • Cash balances dropped 33%, thanks to the expenses incurred for debt conversion, repurchase of shares, acquisitions, and capital expenditures. Full-year free cash flow did, however, improve substantially.
  • Alloy carries a two-star rating in Motley Fool CAPS. Learn more about Alloy's troubles here.

(Figures in thousands, except per-share data.)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$40,857

$43,211

(5.4%)

Net Profit *

($659)

($32,963)

N/A

EPS

($0.05)

($2.78)

N/A

Diluted Shares

13,594

11,855

14.7%

*Loss from continuing operations.

Get back to basics with the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

14.6%

15.9%

(1.3)

Operating Margin

3.3%

(74.2%)

77.5

Net Margin

(1.6%)

(76.3%)

74.7

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$27,511

$40,831

(32.6%)

Accounts Rec.

$29,534

$42,483

(30.5%)

Inventory

$3,225

$2,974

8.4%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable*

$7,246

$17,589

(58.8%)

Long-Term Debt

$1,397

$69,300

(98.0%)

*Includes accounts payable to dEliA*s (NASDAQ:DLIA).

The balance sheet reflects the company's health.

Cash Flow Highlights

FY 2006

FY 2005

Change

Cash From Ops.

$24,343

$5,325

357.1%

Capital Expenditures

$2,403

$743

223.4%

Free Cash Flow

$21,940

$4,582

378.8%



Free cash flow is a Fool's best friend.

Related Foolishness:

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