Monday, June 3, 2013

Is Viad Corp's Cash Machine Shutting Down?

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.
Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general,Choosing a good and Side cantilever drawing strickle reclaimer suppliers will bring you many greatly benefits.Crushers includes many different types such as jaw crusher. by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Viad Corp (NYS: VVI) , whose recent revenue and earnings are plotted below.Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year.The substance utilized in making the vacuum bottle or thermal flasks could be in different variations like plastic, glass or even a metal. TTM = trailing 12 months.
Over the past 12 months, Viad Corp generated $32.4 million cash while it booked net income of $12.Selection of tub is one of the factors that can make-or-break overall look of your Antique faucets, if you have decided for vintage style bathroom.9 million. That means it turned 3.1% of its revenue into FCF. That sounds OK.Unfortunately, the cash flow statement isn't immune from nonsense, either.Resins are usually produced by means of carbon fabric of bisphenol-A, epichlorohydrin and a few other chemical reactants. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).
For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see,The time when Cast iron clawfoot tubs got whole new definition. From simple rooms with showers, they become more elaborate set-up that include modern styles and needs of family. but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

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