Colfax – Financials
So let’s have a look at Colfax’s numbers:
FY 2008:
Colfax sales in FY 2008 grew 20% to 605 $mil.
Excluding the impact of foreign exchange rate fluctuations and acquisitions sales grew 14% in 2008, 14% in 2007 and 12% in 2006.
So we already have a string of sales increases which are similar to what Danaher achieved over the last 10 years: 17.5% average annual top line growth.
In 2008 the company had to absorb one time IPO costs and build up inventory. So it swung to a net loss and free cash flow got tied up in these inventory increases.
But don’t forget that IPO costs are really one time costs and that the proceeds of the IPO were used to pay down debt. So at the end of FY 2008 the company had a healthy debt/equity ratio of 0.58.
Order levels increased 15% to 669 $ mil at the end of FY 2008 and EBIT-margin adjusted for one time events was 15%.
Certainly at the beginning of 2009 Colfax felt the impact of the recession and for the whole year 2009 economic conditions will remain difficult.
Q1 2009 still was order backlog driven: Colfax posted net sales of $ 136 mil, an increase of 4,3%. Organic sales growth which excludes the impact of foreign exchange rate fluctuations was 17,6%.
Net income came in at $ 6.9 mil or $ 0.16 EPS basic and diluted. But the company was free cash flow positive again.
Organic order decline was 25.5% and order backlog still was $ 305.6 mil.
The company lowered its guidance to $ 1.00 to $ 1.07 adjusted EPS for FY 2009 and initiated several cost reduction measures. Organic sales will be down between 2% and 4% this year.
……..continues………