On Feb. 5, diversified power company Otter Tail
- Otter Tail runs a cash-poor and highly leveraged business. Its $19.5 million of interest charges ($18.5 million the previous year) takes a significant bite out of the bottom line.
- The 2005 results included $8.6 million of net income from discontinued operations, compared with $362,000 in 2006.
- I'm champing at the bit for a cash flow statement here, but no such luck. The company typically generates far more free cash flow than net earnings, and it would be great to see whether that trend continued.
(Figures in millions, except per-share data)
Income Statement Highlights
|
FY 2006 |
FY 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$1,105.0 |
$981.9 |
12.5% |
|
Net Profit |
$51.1 |
$62.6 |
(18.3%) |
|
EPS |
$1.72 |
$2.13 |
(19.2%) |
|
Diluted Shares |
29.7 |
29.3 |
1.1% |
Get back to basics with a look at the income statement.
Margin Checkup
|
FY 2006 |
FY 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
34.1% |
37.1% |
(3.1) |
|
Operating Margin |
2.2% |
2.4% |
(0.2) |
|
Net Margin |
4.6% |
6.4% |
(1.7) |
Margins are the earnings engine. See how they work.
Management Effectiveness
|
FY 2006 |
FY 2005 |
Change* |
|
|---|---|---|---|
|
Return on Assets |
16.8% |
21.6% |
(4.9) |
|
Return on Equity |
42.8% |
56.0% |
(13.2) |
See how management puts its financial tools to work.
Balance Sheet Highlights
|
Assets |
FY 2006 |
FY 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$6.8 |
$5.4 |
25.1% |
|
Accounts Rec. |
$145.3 |
$129.6 |
12.1% |
|
Inventory |
$103.0 |
$88.7 |
16.2% |
|
Liabilities |
FY 2006 |
FY 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$120.2 |
$97.2 |
23.6% |
|
Long-Term Debt |
$255.4 |
$258.3 |
(1.1%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
No cash flow statement joy here, folks. Move along.
Find out why Fools always follow the money whenever possible.
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TECO Energy
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Otter Tail is a Motley Fool Hidden Gems pick and Constellation Energy is an Income Investor recommendation. To talk about small-cap stocks, join Tom Gardner and other investors like you on the Hidden Gems discussion boards -- available for 30 days with a free trial.
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.
At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here.
