On Feb. 5, PolyMedica (NASDAQ:PLMD), a maker of specialty medical products and services, released third-quarter earnings for the period ended Dec. 31.

  • Sales were up by 34.3 %, backed by stellar growth of 157% in pharma revenues and 10% growth in diabetes revenues.
  • Operating margins have been affected by an increase in cost of sales by 57%, keeping the sales growth from falling to the bottom line.
  • The board has declared a quarterly dividend of $0.15 per share, payable by Feb. 15.
  • A buyback of shares and acquisitions during 2006-2007 resulted in an increase in long-term debt.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2007

Q3 2006

Change

Sales

$177.2

$131.9

34.3%

Net Profit

$9.8

$9.6

2.3%

EPS

$0.43

$0.40

7.5%

Diluted Shares

23.2

24.3

(4.6%)



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

Margin Checkup

Q3 2007

Q3 2006

Change*

Gross Margin

44.2%

52.3%

(8.1)

Operating Margin

9.7%

12.6%

(2.9)

Net Margin

5.6%

7.3%

(1.7)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2007

Q3 2006

Change

Cash + ST Investments

$1.3

$6.1

(78.1%)

Accounts Receivable

$104.6

$92.7

12.9%

Inventory

$44.6

$40.0

11.6%



Liabilities

Q3 2007

Q3 2006

Change

Accounts Payable*

$61.2

$30.7

99.4%

Long-Term Debt**

$237.6

$167.5

41.9%

*Accounts payable includes accrued expenses.
**Long-term debt includes capital lease and other obligations and credit facility.

Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2007

YTD 2006

Change

Cash From Ops.

$42.3

$11.7

261.1%

Capital Expenditures

$8.1

$7.9

2.5%

Free Cash Flow

$34.2

$3.8

805.0%



Find out why Fools always follow the money.

Related Companies:

  • Pharmion (NASDAQ:PHRM)
  • Cubist Pharmaceuticals (NASDAQ:CBST)
  • Myriad Genetics (NASDAQ:MYGN)
  • Sciele Pharma (NASDAQ:SCRX)

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