On May 8, Headwaters
- Per-share earnings of $0.40 failed to meet Street estimates because management (Foolishly) decided not to recognize roughly $10 million worth of licensing revenue subject to at-risk Sec 29 alternative energy tax credits.
- Regardless, Headwaters saw major improvements in several areas of its business. For example, long-term debt declined by just about $80 million. That, in turn, created $10 million in interest savings that flowed to the bottom line.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2006 |
Q2 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$252,550 |
$269,683 |
$222,392 |
21.3% |
|
Net Profit |
-- |
$18,401 |
$9,974 |
84.5% |
|
EPS |
$0.44 |
$0.40 |
$0.26 |
53.8% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2006 |
Q2 2005 |
Change |
|
|---|---|---|---|
|
Gross Margin |
29.48% |
36.69% |
(7.20%) |
|
Op. Margin |
13.99% |
16.13% |
(2.13%) |
|
Net Margin |
6.82% |
4.48% |
2.34% |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Cash+ ST Invest. |
$56,775 |
$5,943 |
855.3% |
|
Inventory |
$68,202 |
$57,002 |
19.6% |
|
Accounts Rec. |
$127,494 |
$122,900 |
3.7% |
|
Liabilities |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Long-Term Debt |
$654,018 |
$734,662 |
(11%) |
|
Accounts Pay. |
$43,957 |
$36,739 |
19.6% |
Learn the ways of the balance sheet.
Cash Flow Checkup
No cash flow statement provided. (Whatever.)
Find out why Fools always follow the money.
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Related Foolishness:
- Alternative energy providers like Headwaters are gaining political power.
- Is Headwaters on the brink of disaster?
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.
Headwaters is a Motley Fool Rule Breakers selection. Ask us for an all-access pass and you'll get a behind-the-scenes look at a portfolio that is beating the market by more than 17% as of this writing. It's free for 30 days.
Fool contributor Tim Beyers owns shares of Headwaters. You can find out what else is in his portfolio by checking Tim's Fool profile. The Motley Fool has an ironclad disclosure policy.
