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PPSPRA.PFD (Post Properties) Operating Income : $110.22 Mil (TTM As of Sep. 2016)


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What is Post Properties Operating Income?

Post Properties's Operating Income for the three months ended in Sep. 2016 was $24.46 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2016 was $110.22 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Post Properties's Operating Income for the three months ended in Sep. 2016 was $24.46 Mil. Post Properties's Revenue for the three months ended in Sep. 2016 was $101.59 Mil. Therefore, Post Properties's Operating Margin % for the quarter that ended in Sep. 2016 was 24.07%.

Good Sign:

Post Properties Inc operating margin is expanding. Margin expansion is usually a good sign.

Post Properties's 5-Year average Growth Rate for Operating Margin % was 21.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Post Properties's annualized ROC % for the quarter that ended in Sep. 2016 was 4.26%. Post Properties's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2016 was 4.43%.


Post Properties Operating Income Historical Data

The historical data trend for Post Properties'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.

* Premium members only.

Post Properties Operating Income Chart

Post Properties Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 77.70 90.13 99.13 106.80 111.50

Post Properties Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.13 28.99 27.65 29.13 24.46

Post Properties 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 Sep. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $110.22 Mil.

* 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.


Post Properties  (NYSE:PPSPRA.PFD) Operating Income Explanation

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

Post Properties's annualized ROC % for the quarter that ended in Sep. 2016 is calculated as:

ROC % (Q: Sep. 2016 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2016 ) + Invested Capital (Q: Sep. 2016 ))/ count )
=97.828 * ( 1 - 0% )/( (2280.447 + 2316.604)/ 2 )
=97.828/2298.5255
=4.26 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 2016) data.

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

Post Properties's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2016 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2016 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2016  Q: Sep. 2016
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=100.248/( ( (2246.848 + max(-114.57, 0)) + (2282.016 + max(-141.446, 0)) )/ 2 )
=100.248/( ( 2246.848 + 2282.016 )/ 2 )
=100.248/2264.432
=4.43 %

where Working Capital is:

Working Capital(Q: Jun. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 4.126) - (118.696 + 0 + 0)
=-114.57

Working Capital(Q: Sep. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 4.039) - (145.485 + 0 + 0)
=-141.446

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2016) EBIT data.

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

Post Properties's Operating Margin % for the quarter that ended in Sep. 2016 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2016 )/Revenue (Q: Sep. 2016 )
=24.457/101.589
=24.07 %

* 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.

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.


Post Properties Operating Income Related Terms

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Post Properties Business Description

Traded in Other Exchanges
N/A
Address
Post Properties Inc is a Georgia corporation, which was incorporated on January 25, 1984, and is the successor by merger to the original Post Properties, Inc., a Georgia corporation, which was formed in 1971. It is a self-administrated and self-managed equity real estate investment trust (REIT). The Company and its subsidiaries develop, own and manage upscale multi-family apartment communities in selected markets in the United States. The operating divisions of the Company include Post Apartment Management, Post Investment Group and Post Corporate Services. Post Apartment Management is responsible for the day-to-day operations of all Post(r) communities including community leasing, property management, personnel recruiting, training and development, maintenance and security. Post Apartment Management also conducts short-term corporate apartment leasing activities. It is responsible for all development, acquisition, rehabilitation, disposition, for-sale and asset management activities of the Company. For development, this includes site selection, zoning and regulatory approvals, project design and construction management. This division is also responsible for apartment community acquisitions as well as property dispositions and strategic joint ventures that the Company undertakes as part of its investment plan. Post Corporate Services provides executive direction and control to the Company's other divisions and subsidiaries and has responsibility for the creation and implementation of all Company financing, capital and risk management strategies. All accounting, management reporting, compliance, information systems, human resources, legal, risk management and insurance services required by the Company and all of its affiliates are centralized in Post Corporate Services. The Company, through its wholly-owned subsidiaries, is the general partner and owns a majority interest in the Operating Partnership which, through its subsidiaries, conducts all of the on-going operations of the Company. At December 31, 2009, approximately 35.4%, 23.1%, 11.2% and 10.8% (on a unit basis) of the Company's communities were located in the Atlanta, Georgia, Dallas, Texas, the greater Washington, D.C. and Tampa, Florida metropolitan areas, respectively. At December 31, 2009, 19,863 apartment units in 55 apartment communities, including 1,747 apartment units in five communities held in unconsolidated entities and 1,428 apartment units in four communities currently under construction and/or in lease-up. The Company is also developing and selling 277 luxury for-sale condominium homes in two communities (including 129 units in one community held in an unconsolidated entity) and is completing the sell out of units in one condominium community through a taxable REIT subsidiary. The Company competes for residents in its apartment communities based on its high level of resident service, the quality of its apartment communities and the desirability of its locati
Executives
Morgan John F., Sr. director C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
David C. Ward officer: EVP & Chief Investment Officer 4401 NORTHSIDE PARKWAY, SUITE 800, ATLANTA GA 30327
Toni Jennings director C/O NEXTERA ENERGY, INC., 700 UNIVERSE BLVD, JUNO BEACH FL 33408
Donald C Wood director 909 ROSE AVENUE - SUITE 200, NORTH BETHESDA MD 20852
Sheila J. Teabo officer: Senior Vice Pres. 4401 NORTHSIDE PARKWAY, SUITE 800, ATLANTA GA 30327
Charles A. Konas officer: Executive Vice Pres. 4401 NORTHSIDE PARKWAY, SUITE 800, ATLANTA GA 30327
David R. Schwartz director 4401 NOTHSIDE PARKWAY, SUITE 800, ATLANTA GA 30327-3057
Dale Anne Reiss director 589 KINZIE ISLAND COURT, SANIBEL FL 33957
Stella Ferguson Thayer director 4401 NORTHSIDE PARKWAY,, SUITE 800, ATLANTA GA 30327
Deriso Walter M Jr director 1111 BAY AVENUE, SUITE 501, COLUMBUS GA 31901
Douglas Ii Crocker director C/O COLONY NORTHSTAR, INC., 515 S. FLOWER ST., 44TH FLOOR, LOS ANGELES CA 90071
Thomas D Senkbeil officer: EVP & Chief Financial Officer
Herschel M Bloom director 755 LEE STREET, PO BOX 272, ALEXANDER CITY AL 35011-0272
Christopher J Papa officer: Chief Financial Officer 4401 NORTHSIDE PARKWAY, SUITE 800, ATLANTA GA 30327
Nicholas B Paumgarten director C/O JP MORGAN CHASE, 227 PARK AVE 45TH FL, NEW YORK NY 10172

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