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.

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Thursday, July 17, 2008

Todd Shipyards Corporation Announces Contract to Rebuild Fish Processor F/V Pacific Glacier

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Comtex

SEATTLE, Jul 17, 2008 (BUSINESS WIRE) ----Todd Shipyards Corporation (NYSE:TOD) announced that its wholly owned subsidiary, Todd Pacific Shipyards Corporation ("Todd" or the "Company"), was awarded a contract from Glacier Fish Company of Seattle, Washington for the rebuild of the fish processor, F/V Pacific Glacier which suffered significant damage in an onboard fire in February 2008. Glacier Fish Company selected Todd based on a best value determination and their assessment of Todd's ability to help them meet their requirements for the 2009 Schedule A fishing season.

The contract will commence immediately and will include work on all areas damaged by the fire. This includes deck coverings, linings, furniture, equipment, piping, ventilation, electrical and electronic navigation, communication, and control systems. The completion schedule will be determined as design is completed and work scope is detailed. Removal of all fire damaged material and debris, and repair of structural steel damage caused by the fire has been accomplished by Todd under separate previously awarded contracts. The final contract price is expected to be in excess of $10 million.

Todd performs repair and maintenance work on commercial and federal government vessels and provides new construction and industrial fabrication services for a wide variety of customers. Its customers include the U.S. Navy, the U.S. Coast Guard, NOAA, the Washington State Ferry system, the Alaska Marine Highway System, and various other commercial and governmental customers. Todd Shipyards Corporation has operated a shipyard in Seattle since 1916.

SOURCE: Todd Shipyards Corporation

Todd
   Shipyards Corporation Hilary Pickerel Shareholder Relations 206-623-1635 Ext. 106

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