On Feb. 6, "interactive conglomerate" IAC/InterActiveCorp (NASDAQ:IACI) released fourth-quarter earnings for the period ended Dec. 31.

  • For the full story, read our earnings take here.
  • The company reported 8% revenue growth to $1.8 billion, driven by revenue growth across all segments, with the media and advertising segment growing 46%.
  • Earnings from continued operations dropped by 98% because of operating costs, mainly the effect of a goodwill impairment charge to the tune of $214 million.
  • The company did improve its cash position, with free cash flow at $562.9 million from a negative $305.4 million last year.
  • IACI is a four-star stock (out of five) in CAPS, our interactive stock database.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$1,823.9

$1,691.3

7.8%

Earnings from Continued Operations

$2.7

$119.5

(97.8%)

EPS from Continued Operations

$0.01

$0.35

(97.1%)

Diluted Shares

309.0

344.0

(10.2%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

48.1%

48.5%

(0.4)

Operating Margin

(0.2%)

11.3%

(11.5)

Net Margin

0.2%

7.1%

(6.9)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$2,325.9

$2,475.1

(6.0%)

Accounts and Notes Rec.

$528.5

$426.7

23.9%

Inventory

$362.2

$335.9

7.8%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable*

$592.4

$573.6

3.3%

Long-Term Debt

$857.1

$959.4

(10.7%)

*Accounts payable for both trade and client accounts.

Learn the ways of the balance sheet.

Cash Flow Highlights

FY 2006

FY 2005

Change

Cash From Ops.

$814.3

($82.5)

N/A

Capital Expenditures

$251.4

$222.9

12.8%

Free Cash Flow

$562.9

($305.4)

N/A



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