On April 5, Income Investor selection RPM International
- Record quarterly sales of $679.5 million were achieved, thanks to organic sales growth of 8.3%.
- Backing out one-time charges, including a $15 million asbestos claim in the third quarter of fiscal 2006, the company's earnings grew a whopping 47.9%.
- On the unsettling side, gross margins at the company have decreased five years running.
- RPM is rated three stars in Motley Fool CAPS.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$679.5 |
$612.5 |
10.9% |
|
Net Profit* |
$10.2 |
$6.9 |
47.9% |
|
EPS |
$0.09 |
$0.06 |
50.0% |
|
Diluted Shares |
129.0 |
116.9 |
10.4% |
Get back to basics with the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
38.8% |
39.7% |
(1.0) |
|
Operating Margin |
3.3% |
3.2% |
0.1 |
|
Net Margin |
1.5% |
1.1% |
0.4 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$137.7 |
$93.1 |
47.9% |
|
Accounts Rec. |
$481.9 |
$443.6 |
8.6% |
|
Inventory |
$453.3 |
$397.3 |
14.1% |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$250.8 |
$210.9 |
18.9% |
|
Long-Term Debt |
$933.0 |
$860.9 |
8.4% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$133.8 |
$111.4 |
20.2% |
|
Capital Expenditures |
$34.1 |
$31.2 |
9.4% |
|
Free Cash Flow |
$99.7 |
$80.2 |
24.4% |
Free cash flow is a Fool's best friend.
Related Foolishness:
- RPM Coated in Cash: Fool by Numbers
- Foolish Forecast: RPM Revving Its Engines
- WD-40 Still Needs Grease
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 check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. RPM is an Income Investor selection. To provide feedback on this article, please click on the "feedback" button below.
