On May 2, Walter Industries
- Net sales increased 2.3%, as Homebuilding experienced higher unit selling prices and coal pricing was favorable.
- Operating income from continuing operations decreased by 10.5%, thanks to higher expenses at Jim Walter Resources; these included freight, post-retirement healthcare costs, and depreciation.
- Because of lower bank debt and the conversion of nearly all the company's convertible debt into equity, interest expenses fell $5.1 million.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$320.3 |
$313.1 |
2.3% |
|
Net Profit* |
$32.1 |
$36.8 |
(12.6%) |
|
EPS |
$0.61 |
$0.74 |
(17.6%) |
|
Diluted Shares |
52.5 |
51.0 |
3.0% |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin** |
33.9% |
35.6% |
(1.7) |
|
Operating Margin |
19.1% |
21.8% |
(2.7) |
|
Net Margin*** |
10.0% |
11.7% |
(1.7) |
**On net sales only
***Continuing operations
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$185.2 |
$230.7 |
(19.7%) |
|
Accounts Rec. |
$75.6 |
$363.2 |
(79.2%) |
|
Inventory |
$113.9 |
$585.3 |
(80.5%) |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$67.6 |
$183.9 |
(63.2%) |
|
Long-Term Debt |
$1,958.1 |
$3,703.4 |
(47.1%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$31.5 |
$32.8 |
(4.1%) |
|
Capital Expenditures |
$25.5 |
$27.9 |
(8.6%) |
|
Free Cash Flow |
$6.0 |
$4.9 |
21.8% |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Housing's Maladies Hammer Builders FirstSource
- No Light in Horton's Tunnel
- Taking a Toll on Homebuilders
Walter Industries is a special situation recommended at Hidden Gems. For more small-cap value opportunities, simply sign up today for your free 30-day trial.
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