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  • janusdealer janusdealer Nov 28, 2005 4:10 PM Flag

    cash flow?

    thanks for the thoughts/oped.
    I agree that something has to kick azz into to speak.
    If value isn't being added to the corp coffers why be a shareholder? Especiallywith no divd. Each qtrly report mentions competitive pressures in some way shape or form. And I am sure it is true. The 2005
    Annual does not show, least as I can find, what part of sales is generated outside the U.S. In today's world that needs to be a major part of the "business plan" especially as azz is infrastructure oriented. Galv'ing is a local biz so it is hard to imagine that being an overseas effort but who knows?
    With alarm I note that Cash provided from Operations has gone from $22mil in 2003 to $15 in 2004 down to $6.3mil in 2005!

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    • I would assume sales outside of the USA are under 10% of total or they would be disclosed (an accounting rule). So, that would address one of your observations.

      The 2003 cash flow is not good for comparsion because they down scaled inventory and receivables that year along with the pull back in the economy -- this freed a lot of cash that reduced debt that year.

      The decrease from '04 to '05 does not bother me given that the increasing sales causes a conversion of cash back into new inventory and receivables -- unless we later find out that the receviables and long-term contract related inventory is not good. But, Mr. Perry has been keeping the books too long with great integrity -- so I believe the numbers are completely trustworthy. I would not worry about the cash flow relative to income. I would worry about income relative to sales -- that is where I want to see performance. The CF will trail the income with great predicatability for this company.

      • 1 Reply to homeworkdone
      • I think you are "spot on". Sorry I work for a British company.
        Anyway the baclog is improving but as uou posted how profitable is it.
        We will see. But they are going to have to grow in China, Mexico etc where there is more industrial construction, Africa and South America for oil/gas production. I recall something about a small footprint in China being mentioned last qtr.

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