FY 2013 – Good News from Colfax!
Colfax (NYSE: CFX) released its Q4 and FY 2013 Earnings the 6th february and hold its conference call the same day. As always Seeking Alpha published the transcript.
The numbers are good news! Colfax is marching forward by its plan!
Q4 net sales increased 14.0% (10.2% organically) to $1.171 billion. The company experienced a record backlog of $1.6 billion in the gas and fluid-handling business, which was driven largely by recent acquisitions.
Operating margins increased to 10.6% in the fourth quarter, as compared to 8.7% in the prior year.
The Charter acquisition has been successfully integrated.
And thanks to the continued adoption and deployment of CBS tools across the whole organization free cash flow jumped 260% compared to 2012!
On the conference call CEO Steve Simms highlighted one great example of a CBS tool. During the first quarter of 2013, the newly created strategic sourcing team was able to implement a world class „Spend Analytic system“:
„With this new system we are now able to classify and analyze our spend data across 150 different sites, in over 50 countries, with over 30 languages and currencies with each of our vendors. This has been an enabler in our ability to apply our CBS strategic sourcing Kaizen methodology to optimize our global spend in areas like motors, castings, steal, travel and energy.“
Colfax confirmed its 2014 guidance provided in Dec 2013 on the Annual Investor Day:
Total revenue will be within the $4.5–$4.625 billion range and GAAP earnings per share will be between $ 2.14 and $ 2.34 .
This translates into a p/e of 29 for FY 2014 earnings for a company which analysts estimate to grow by 25% annually for the next 5 years.
Thanks to the strong cash flow improvement the price/2013 free cash flow ratio is lower and stands at only 22.
Expect this company to march steadily forward and so will do the stock price!
Build up your position on weak days!