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 / Technology

Thursday, July 10, 2008

DST Systems, Inc. Announces Notice of Put Right of Series B Convertible Senior Debenture Holders

Email this Story | Respond to Editor | Print

Comtex

KANSAS CITY, Mo., July 10, 2008 /PRNewswire-FirstCall via COMTEX/ ----DST Systems, Inc. (NYSE: DST) (the "Company") announces a notice of put right in connection with $300 million aggregate principal amount of 3.625% Series B convertible senior debentures due 2023. Series B convertible senior debenture holders may require the Company to purchase the debentures on August 15, 2008, for cash, at a purchase price equal to the accreted principal amount of the debentures to be purchased plus any accrued and unpaid cash interest to August 15, 2008.

For instructions on submitting a Notice of Put Right for the Series B convertible debentures to the Company, which must be delivered on or prior to close of business on August 14, 2008, holders should contact our trustee: The Bank of New York Mellon, telephone number 1-800-254-2826. The form of Notice available from the trustee contains the terms and conditions of the put right and the Company's related purchase obligation, and this press release does not constitute an offer to purchase or a solicitation of an offer to sell securities. Should any puts occur, the Company anticipates funding the purchases by using cash flow from operations, available cash, capacity under credit facilities, or investments.

The Company has described other purchase dates and other terms and conditions of the debentures in its Annual Report on Form 10-K for the year ended December 31, 2007.

The information and comments in this press release may include forward- looking statements respecting DST and its businesses. Such information and comments are based on DST's views as of today, and actual actions or results could differ. There could be a number of factors, risks, uncertainties or contingencies that could affect future actions or results, including but not limited to those set forth in DST's periodic reports (Form 10-K or 10-Q) filed from time to time with the Securities and Exchange Commission. All such factors should be considered in evaluating any forward-looking statements. The Company will not update any forward-looking statements in this press release to reflect future events.

SOURCE DST Systems, Inc.

Copyright
   (C) 2008 PR Newswire. All rights reserved ********************************************************************** As of Sunday,
   07-06-2008 23:59, the latest Comtex SmarTrend� Alert, an automated pattern recognition system, indicated a DOWNTREND on 03-03-2008
   for DST @ $70.05. For more information on SmarTrend, contact your market data provider or go to www.mysmartrend.com SmarTrend
   is a registered trademark of Comtex News Network, Inc. Copyright � 2004-2008 Comtex News Network, Inc. All rights reserved.