On Jan. 19, Biomet (NASDAQ:BMET) released second-quarter earnings for the period ended Nov. 30.

  • Net sales increased 5.2%, primarily driven by 9.4% growth in revenues from reconstructive products.
  • Accounts receivable and inventory growth outpaced sales growth. That can be a troubling sign if it recurs several quarters in a row.
  • On Dec. 18, the company announced that it would be taken off the market by a private equity group for $10.9 billion, or $44 per share in cash.

(Figures in millions, except per-share data)

Income Statement Highlights

Q2 2007

Q2 2006

Change

Sales

$520.3

$494.7

5.2%

Net Profit

$103.2

$101.3

1.9%

EPS

$0.42

$0.41

2.4%

Diluted Shares

245.1

249.3

(1.7%)



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

Margin Checkup

Q2 2007

Q2 2006

Change*

Gross Margin

70.9%

71.8%

(0.9)

Operating Margin

29.6%

30.8%

(1.2)

Net Margin

19.8%

20.5%

(0.6)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Cash + ST Invest.

$105.0

$106.5

(1.4%)

Accounts Rec.

$554.3

$479.9

15.5%

Inventory

$563.2

$495.6

13.6%



Liabilities

Q2 2007

Q2 2006

Change

Accounts Payable

$56.9

$58.1

(2.1%)

Long-Term Debt

$0.0

$0.0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2007

YTD 2006

Change

Cash From Ops.

$127.8

$178.9

(28.5%)

Capital Expenditures

$52.7

$50.7

4.0%

Free Cash Flow

$75.2

$128.2

(41.4%)



Find out why Fools always follow the money.

Related Companies:

  • Medtronic (NYSE:MDT)
  • Zimmer Holdings (NYSE:ZMH)
  • St. Jude Medical (NYSE:STJ)
  • Smith & Nephew (NYSE:SNN)
  • Varian Medical Systems (NYSE:VAR)

Related Foolishness:

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