Cambrex (CBM) Sanity Check

I am trying to update the 1YPEG spreadsheet and at the same time do a sanity check of the numbers to make sure I understand how it is done. The spreadsheet was not updated for 11/30/15 EPS yet so I looked at the SEC filings.
Here is what is currently in the sheet:


Trailing Earnings Last Year	Trailing Earnings This Year
Q-8	Q-7	Q-6	Q-5	Q-4	Q-3	Q-2	Q-1
$0.37 	$0.07 	$0.12 	$0.64 	$0.28 	$0.90 	$0.26 	$0.63 

Here Saul’s evaluation post…
http://discussion.fool.com/cambrex-cbn-an-evaluation-32041730.as…
and Saul’s numbers…
Earnings
2013: 99
2014: 133
*I can’t these to match up with any of the 4 contiguous quarters in the table above.

Here is data from the 10Q ending 6/30 and 9/30


		                              6/30/2015	6/30/2014
Basic earnings/(loss) per share of common			
stock:			
Income from continuing operations		$0.62	$0.65
Income/(loss) from discontinued operations,	$0.01	($0.01)
net of tax			
Net income		                        $0.63	$0.64
			
Diluted earnings/(loss) per share of common			
stock:			
Income from continuing operations		$0.60	$0.63
Income/(loss) from discontinued operations,	$0.01	$0.00
net of tax			
Net income		                        $0.61	$0.63
			
			
			

I see the 63 cents of earnings line up with the spreadsheet, but I would have thought we would use diluted EPS to be more accurate. What should we use?

			
			
		                              9/30/2015	9/30/2014
Basic earnings/(loss) per share of common			
stock:			
Income from continuing operations		$0.38	$0.29
Loss from discontinued operations, net		$0.00	$0.00
of tax			
Net income		                        $0.37	$0.28
			
Diluted earnings/(loss) per share of common			
stock:			
Income from continuing operations		$0.36	$0.28
Loss from discontinued operations, net		$0.00	$0.00
of tax			
Net income	                         	$0.36	$0.28

Looks like the 9/30 earnings had a drop off from June.


Trailing Revenue Last Year (in $M)	Trailing Revenue This Year (in $M)
Q-8	Q-7	Q-6	Q-5	Q-4	Q-3	Q-2	Q-1
$63 	$78 	$104 	$67 	$82 	$128 	$78 	$107 

and Saul’s numbers…

Revenue
2012: 278
2013: 317
2014: 374

Gross Sales
3 months ending…
6/30/15 -$106,379 (other rev 621) so it looks like the Q1 number of $107 is the $106,379 + $621 Is that the correct way to do it?
9/30/15 - $92,350 (other reve $1,244)

From 10Q ending 6/30/15


		               2015 
			
Gross sales		       $106,379
Commissions, allowances and rebates	365
			
Net sales			106,014
			
Other revenue			621
			
Net revenues			106,635
			
Cost of goods sold	        60,690
			
Gross profit			45,945

Thanks for any guidance.

Pete

8 Likes

Pete,

Don’t use the 10Q for obtaining your numbers for 1YPEG, use the quarterly press earnings. You’ll find them much easier to use for this purpose. I only use 10Qs for cash flow statements and balance sheet analysis.

Anyway, since the last numbers you were using were from 2Q15, here is that press release:

http://ir.cambrex.com/phoenix.zhtml?c=80683&p=irol-newsA…

What you’re going to be looking for is “adjusted diluted EPS”. Every company calls it something different, but usually it’s something like non-GAAP EPS or “adjusted EPS” or something like that.

From this quarter’s press release you can see adjusted diluted EPS was $0.63 up from $0.35 from the previous year’s second quarter. Using these numbers, I bet you will be able to reconcile them with Saul’s. This is all I’ve looked at for them, but if you need more help let me know.

Hope this helps.

  • Matt
2 Likes

Pete,

If we use the adjusted EPS shown in the press releases on the investor relations website, the numbers in the spreadsheet look incorrect.

For instance, the spreadsheet shows Q1 earnings of 63 which is correct. But Q5 should be 35 cents, not 64.

If you go through the press releases, you can quickly find adjusted EPS which should clear this up.

If you don’t have it taken care of already, I can fix this later tonight. Good catch!

Take care,
AJ

3 Likes

Pete, I used the exact figures that the company gave for adjusted earnings each quarter and for the year. What I had was:


2013:  xx   xx   xx   36 = 099
2014:  06   35   28   64 = 133
2015:  29   63   40 

Here’s how I found it. I started with this http://www.cambrex.com/news
If you look for instance at Nov 3rd 2015, Cambrex reports 3rd quarter 2015 results, you’ll find right in the Highlights

GAAP diluted EPS from continuing operations was $0.36 versus $0.28 in the third quarter last year and Adjusted diluted EPS was $0.40 compared to $0.28 in the same quarter last year.

Very clear, but if you look at some earlier reports, it’s less so. For fourth quarter 2014, for example, you go to page two, click on it, and get the release http://www.cambrex.com/news/article/cambrex_reports_fourth_q… but then you can’t find adjusted earnings because they shortened what they give you in the press release, eliminating the tables. So you click on that big button that says “Download PDF: Fourth quarter 2014 results” and you get a very clear copy instantly. You scroll to the end and the last table is called Reconciliation of GAAP and non-GAAP results for the quarter and fiscal year.

The results are very clear: For the 4th quarter 2014 compared to 4th quarter 2013, they give 64 cents compared to 36 cents, and for the full year they give $1.33 compared to $0.99. Those are the results I used, exactly, as you’ll see from the table above. (This takes a while to write out and sounds complicated, but it’s pretty instantaneous to do, and won’t take you any time at all).

Best,

Saul

4 Likes

Thanks all, I went back and looked at all the referenced press releases and updated the spreadsheet. Now it shows this for EPC


Trailing Earnings Last Year	Trailing Earnings This Year			
Q-8	Q-7	Q-6	Q-5	Q-4	Q-3	Q-2	Q-1
$0.36 	$0.07 	$0.35 	$0.28 	$0.64 	$0.29 	$0.63 	$0.40 
							
TTME Last Year	$1.06 					
TTME This Year	$1.96 					
YoY EPS 	85%					
TTM PE		25					
1YPEG		0.29					

Trailing Revenue Last Year (in $M) Trailing Revenue This Year (in $M)			
Q-8	Q-7	Q-6	Q-5	Q-4	Q-3	Q-2	Q-1
$103.0 	$66.20 	$98.00 	$81.10 	$128.00 $78.20 	$106.40 $92.40 
							
TTM Rev ($M) Last Year	$348 				
TTM Rev ($M) This Year	$405 				
YoY Rev Growth		16%				
TTM PS			3.77				

FYI, the updated spreadsheet shows new 1YPEG at 0.29

While updating the spreadsheet I took the liberty of “adding value” to my EPS and Rev entries. In each cell I added a comment with the copy/paste from the press release, hoping that would help people have certainty when they look at the numbers going forward. For example…

Q ending 9/30/15: GAAP diluted EPS from continuing operations was $0.36 versus $0.28 in the third quarter last year and Adjusted diluted EPS was $0.40 compared to $0.28 in the same quarter last year

  • in other cells I just copy/pasted the Adjusted parts.
  • as we copy and paste to the left, the comments should follow.

I believe it also stamps it with my Google name, which I have mixed feelings about :wink:

I also had my (rev) cells show 1 decimal place as 91.4 is better than 91 and as I discovered, people were not entering the first decimal place.

I tried to update Neil’s site here:
http://www.1ypeg.com/cbm
but it did not seem to let me. I could enter everything but the year associated with the Q, but when I hit save, it did not seem to save and no chart appeared. Do I need permissions for this? Am I missing something?

Saul, you will note one discrepancy between our numbers. I Q1 of 2014 I have 0.7 and you have 0.6.

http://www.cambrex.com/news/article/cambrex_reports_first_qu…
GAAP Diluted EPS from continuing operations was $0.26 versus $0.04 in the first quarter last year and Adjusted Diluted EPS was $0.29 compared to $0.07 in the same quarter last year.

So, where did you get 0.06?

This is nice and fast since you only have to look at the last 4 press releases to get 8Q of data.

Thanks for the clear explanation of how to find adjusted earnings. I went back to the KB and it says to do that, but was not as specific as how to find it. I think if the next KB has your explanation above plus the link, then explorers like me will go see how it is done (by real example) and then be able to apply it to their own work (like I can now).

Thanks
Pete

3 Likes