On Feb. 15, global orthopedic device company Wright Medical Group (NASDAQ:WMGI) released earnings for the fourth quarter ended Dec. 31.

  • Revenues increased by nearly 8% on growth in sales of hip, biologics, and extremity products.
  • Earnings nearly tripled, in part because of significantly higher margins.
  • The company's strong cash position allowed it some money for capital spending. It also was able to reduce long-term debt and still retain cash of $88.3 million, an increase of 15.7%.
  • Wright Medical expects revenues for the next quarter to be $90 million to $92 million, up by 4% to 7%, and annual revenues to be $366 million to $374 million, an increase of 11% to 19%.
  • For fiscal 2007, management expects adjusted EPS to be $0.71 to $0.76.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$86,553

$80,268

7.8%

Net Profit

$5,747

$2,043

181.3%

EPS

$0.16

$0.06

166.7%

Diluted Shares

35,843

35,026

2.3%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

71.1%

69.7%

1.4

Operating Margin

6.9%

3.6%

3.3

Net Margin

6.6%

2.6%

4.0

*Expressed in percentage points.

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Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$88,264

$76,277

15.7%

Accounts Rec.

$72,476

$61,729

17.4%

Inventory

$86,157

$82,381

4.6%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$17,049

$13,572

25.6%

Long-Term Debt

No data

No data

No data



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Cash Flow Highlights

The company didn't provide a cash-flow statement.

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Related companies:

  • Kyphon (NASDAQ:KYPH)
  • NuVasive (NASDAQ:NUVA)
  • CONMED (NASDAQ:CNMD)
  • Biomet (NASDAQ:BMET)

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