On May 7, mini-conglomerate Otter Tail
- Otter Tail has been conducting business for a long, long time, issuing uninterrupted dividend payouts since 1937, and raising those dividends annually without fail since 1975.
- The company isn't a big believer in working capital, preferring to run its day-to-day operations on revolving credit lines.
- Once again, diversity saves the day. Lower margins on electricity sales and construction projects were balanced by stronger sales of food ingredients. Otter Tail may be smaller than Tyco
(NYSE:TYC) , General Electric(NYSE:GE) , or 3M(NYSE:MMM) , but the same fundamental business strategies underpin the lasting strength of all these conglomerates -- whatever size their market caps. - Otter Tail sports a strong four-star rating in the Motley Fool CAPS investor intelligence database.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$301.1 |
$257.8 |
16.8% |
|
Net Profit |
$10.4 |
$14.9 |
(29.9%) |
|
EPS |
$0.35 |
$0.50 |
(30%) |
|
Diluted Shares |
29.8 |
29.7 |
0.1% |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Operating Margin |
6.9% |
10.6% |
(3.7) |
|
Net Margin |
3.5% |
5.8% |
(2.3) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$0.0 |
$0.0 |
N/A |
|
Accounts Rec. |
$151.6 |
$188.6 |
(19.6%) |
|
Inventory |
$100.6 |
$106.5 |
(5.5%) |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$122.2 |
$111.7 |
9.4% |
|
Long-Term Debt |
$254.8 |
$257.6 |
(1.1%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
Free cash flow is a Fool's best friend. However, Otter Tail didn't hand out this vital information sheet this time. For shame!
Related Foolishness:
Otter Tail is a Motley Fool Hidden Gems recommendation, while 3M and Tyco have been singled out by the Motley Fool Inside Value team. 30-day trial passes for everyone! It's free!
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, Anders Bylund had no position in any company mentioned. The Motley Fool has a disclosure policy.
