Tyco International Limited (TYC) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Tyco International Limited (TYC)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Terrapin who started this subject	3/2/2004 6:40:06 PM
From: rich evans	of 3770

Tyco cash flow. At recent conference tyco in effect increased cash flow estimates for the year saying that FCF was now going to be 3.2 bill plus PLUS. With 732 mill FCF in Q1- 600 mill ahead of last year - Tyco is on the road for a lot of FCF. In Q1 tyco paid the yearly bonues of 185 mill plus used cash of 287 mill in working capital for a total of 472 mill cash used. In Q2 W/C will not use cash but likely provide cash under programs in place to provide 1 bill in W/C cash by 2006. In Q2 therefore tyco FCF should be between 1 bill and 1.2 bill based on earning projections of 35- 37 cents for the Quarter reaffirmed at the conference. CEO Breen's estimates are usually given when they are for sure. At conference ,Q2 was half over and tracking well.So he knew pretty sure how Q2 would end up. Last quarter the 34cents a share was after restructure charge and a GAAP number although the estimate of 32- 34 cents given the street for Q1 was supposed to be before restructure charges. I believe that this quarter will be the same with the estimate of 35-37 cents/share being actually after restucture chares so the before number will closer to 40cent/share excluding then 100 mill in pay as you go restructure charges. Thus tyco could be approaching 2 bill in FCF at the half way mark with the best quarters ahead. By the time Q3 is over tycos free cash flow could easily equall the 3.2 bill acheived in 2003. By that time revised estimates will have been made and the stock responded accordingly. Any divestures announced will add to the positive image. Tyco said at conference that they are selling Sonitrol , the franchise commercial security business, they have as it competes with their ADT business. I think this must be the 400 mill rev business they mentioned back in Q4 conference call. Rich

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next