Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

Home / Markets / Industries / Finance

Tuesday, July 01, 2008

Arbitron Inc. Second Quarter 2008 Earnings Release and Conference Call Scheduled For July 22, 2008

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Comtex

NEW YORK, Jul 01, 2008 (BUSINESS WIRE) ----Arbitron Inc. (NYSE: ARB) today announced that it will release its second quarter results on Tuesday, July 22, 2008 during pre-market hours.

Following the release, Arbitron will host a conference call at 10:00 a.m. Eastern Time. The Company invites you to listen to the call by dialing (toll free) 888-868-9083. The conference call can be accessed from outside of the United States by dialing 973-935-8512. To participate, users will need to use the following code: 54594714. The call will also be available live on the Internet at the following sites: www.arbitron.com, www.ccbn.com and www.streetevents.com.

A replay of the call will be available from 12:00 p.m. on July 22 through 11:59 p.m. on July 29, 2008. To access the replay, please call (toll free) 800-642-1687 in the United States or 706-645-9291 outside of the United States. To access the replay, users will need to enter the following code: 54594714.

About Arbitron

Arbitron Inc. is a media and marketing research firm serving radio broadcasters, cable companies, advertisers, advertising agencies and outdoor advertising companies. Arbitron's core businesses are measuring network and local market radio audiences across the United States; surveying the retail, media and product patterns of local market consumers; and providing application software used for analyzing media audience and marketing information data. The Company has developed the Portable People Meter, a new technology for media and marketing research.

Through its Scarborough Research joint venture with The Nielsen Company, Arbitron also provides media and marketing research services to the broadcast television, newspaper and online industries.

Arbitron's marketing and business units are supported by its research and technology organization, located in Columbia, Maryland; its executive offices are located in New York City.

PPM(TM) and Portable People Meter(TM) are marks of Arbitron Inc.

SOURCE: Arbitron Inc.

Press Information: Arbitron Inc. Thom Mocarsky, 410-312-8239 thom.mocarsky@arbitron.com

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