Depreciation =$12.0m + Amortization =$1.1m - CAPEX $15.4m = -$2.3m
Tax effect (x0.3) that is $0.7m
FY2010 Net Profit $19.7m
RBD Owner earnings for FY2010 $19.7m-$2.3m+$0.7m= $18.1m. What am I missing?
SNOOPY
Printable View
1/ Around $18m of secured bank loans could be paid off, which might enable them to negotiate better banking terms.
2/ Creditors are up $3m year on year. RBD could pay their bills more promptly and negotiate better supplier rates as a trade off for doing so.
3/ Shareholder expectation will be for dividends of 16cps this year or $15.6m.
That pretty much takes care of the cash I think.
SNOOPY
As i said on the SKL thread where all this started often better to use Owners earnings and Free Cash Flow as the same
FCF is operating cash flow lwss capex ... and easier to calculate than going through the balance sheet and P&L and picks up changes in working capital and all that
Here are my values.
E = 19.5
D+A=13
Changes to working capital = 23.6
C ex.= 13.8
19.5+13+23.6-13.8=42.3
Of course it is only one year, but look at the cash yield.
42.3/197=21.5%=bargain
I am guessing but it looks like you use working capital as current assets less current liabilities?
If so you have included an amount of $17,9 for 'loans and finance leases' which shows as current in 2010 but was part of the $34m in non current liabilities in 2009 .... as such not really a change in working capital
Adjust for that and we will sort have have the same figure ..... and I didn't even use the E in my calcs
Can you explain what it says in note 24?
The increase in working capital comes largely from not paying your bills to the extent of $3.123m, and not paying tax on increased profit you have already earned of $2.938m , because the law allows it. Are you not deluding yourself about the nature of the working capital improvements? Creditors will eventually have to be paid and so will that tax bill. How does including the fact that these bills are not yet paid in the companies cash position show that RBD management are better at running their business? Is not paying your bills and not paying your tax a viable long term growth strategy?
SNOOPY