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Subject:  Owner Earnings Run Rate Date:  1/5/2006  6:37 PM
Author:  stock4mt Number:  1629 of 2244

Apologies in advance for a foolish question but I've been unable to find this answer.
MF states in their December newsletter that the Owner Earnings Run rate for Quality Systems (QSII) is 20M.
In the MF glossary, Owner Earnings Run Rate is: Net Income + Depreciation +/- One time Events - Capital Expenditures.
If I look at the annual cash flow statement for QSII, I get Net Income [16.11] + Depreciation [1.01] +/- One time events [0] - Capital Expenditures [-4.38].
The result is 12.74 if I subtract the Capital expenditures..... However, since Capital Expenditures is negative, I wonder if I should add (double negative), instead of subtract to get 21.5. This value is much closer to the value in the December advisor issue. This isn't very intuative as I can't really think of a situation where capital expenditures would be positive...
I am also making the assumption that the Value is from the latest annual Cash Flow statement.
Thanks in advance for your clarification,
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