American Community Newspapers (American Community Newspapers) Operating Income : $2.48 Mil (TTM As of Jun. 2008)

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What is American Community Newspapers Operating Income?

American Community Newspapers's Operating Income for the three months ended in Jun. 2008 was $1.39 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2008 was $2.48 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. American Community Newspapers's Operating Income for the three months ended in Jun. 2008 was $1.39 Mil. American Community Newspapers's Revenue for the three months ended in Jun. 2008 was $17.21 Mil. Therefore, American Community Newspapers's Operating Margin % for the quarter that ended in Jun. 2008 was 8.07%.

American Community Newspapers's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. American Community Newspapers's annualized ROC % for the quarter that ended in Jun. 2008 was 2.47%. American Community Newspapers's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2008 was -4,496.18%.

American Community Newspapers Operating Income Historical Data

The historical data trend for American Community Newspapers's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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American Community Newspapers Operating Income Chart

American Community Newspapers Annual Data

Trend

Dec05

Dec06

Dec07

Operating Income

0.54

-0.56

1.22

American Community Newspapers Quarterly Data
	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08
Operating Income	Get a 7-Day Free Trial								-0.21	1.05	0.43	-0.39	1.39

American Community Newspapers Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2008 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.48 Mil.

American Community Newspapers (OTCPK:ACNI) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

American Community Newspapers's annualized ROC % for the quarter that ended in Jun. 2008 is calculated as:

	ROC % (Q: Jun. 2008 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2008 )	+	Invested Capital (Q: Jun. 2008 ))	/ count )
=	5.556 * ( 1 - 2.08% )	/	( (205.998	+	234.005)	/ 2 )
=	5.4404352	/	220.0015
=	2.47 %

where

	Invested Capital		(Q: Mar. 2008 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	210.946	-	5.699	-	( 0.631	-	max(0, 10.185	-	9.434	+	0.631	))
=	205.998

	Invested Capital		(Q: Jun. 2008 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	100.802	-	4.792	-	( 2.552	-	max(0, 149.412	-	11.417	+	2.552	))
=	234.005

Note: The Operating Income data used here is four times the quarterly (Jun. 2008) data.

2. Joel Greenblatt's definition of Return on Capital:

American Community Newspapers's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2008 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2008 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2008		Q: Jun. 2008
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-432.42	/	( ( (8.912 + max(1.768, 0))	+	(8.555 + max(-4.517, 0)) )	/	2 )
=	-432.42	/	( ( 10.68	+	8.555 )	/	2 )
=	-432.42	/	9.6175
=	-4,496.18 %

where Working Capital is:

	Working Capital		(Q: Mar. 2008 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(7.139	+	0.958	+	0.706)	-	(5.699	+	1.336	+	0)
=	1.768

	Working Capital		(Q: Jun. 2008 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0.752	+	0.826)	-	(4.792	+	1.303	+	0)
=	-4.517

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2008) EBIT data.

3. Operating Income is also linked to Operating Margin %:

American Community Newspapers's Operating Margin % for the quarter that ended in Jun. 2008 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2008 )	/	Revenue (Q: Jun. 2008 )
	=	1.389	/	17.211
	=	8.07 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

American Community Newspapers Operating Income Related Terms

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American Community Newspapers (American Community Newspapers) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » American Community Newspapers Inc (OTCPK:ACNI) » Definitions » Operating Income

Comparable Companies

FRLF GLBD EDUC MNI AHC LEE VALU DJCO IDWM TRNC NEWM GCI TIME SCHL MDP NYT JW.B

Traded in Other Exchanges

N/A

Address

14875 Landmark Boulevard, Suite 110, Addison, TX, USA, 75254

Website

http://www.acnpapers.com

American Community Newspapers Inc is a community newspaper publisher in the United States, operating within four major U.S. markets.

Executives

Rachesky Mark H Md	10 percent owner	40 WEST 57TH STREET, 24TH FLOOR, NEW YORK NY 10019
Mhr Fund Management Llc	10 percent owner	1345 AVENUE OF THE AMERICAS,, 42ND FLOOR, NEW YORK NY 10105
Mhr Advisors Llc	10 percent owner
Marilyn Rubenstein	10 percent owner
Woodland Services Corp	10 percent owner
Israel A Englander	other: May be deemed as group member.	C/O MILLENNIUM MANAGEMENT LLC, 399 PARK AVENUE, NEW YORK NY 10022
Millenco, L.l.c.	10 percent owner	C/O MILLENNIUM MANAGEMENT LLC, 666 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10103
Millennium Management Llc	other: May be deemed as group member.	399 PARK AVENUE, NEW YORK NY 10022
Barry Rubenstein	10 percent owner	68 WHEATLEY RD, BROOKVILLE NY 11545

American Community Newspapers (American Community Newspapers) Headlines

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