Balanced Biomet: Fool by Numbers

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:

• Smith & Nephew, What's the Deal?
• Smith & Nephew Is Hip to Growth
• Shocking Results at Medtronic

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.