On March 5, Integra LifeSciences (NASDAQ:IART) released fourth-quarter earnings for the period ended Dec. 31, 2005.

  • Though sales were up more than 18%, acquisitions played a definite (though undisclosed) role.
  • Integra LifeSciences management continues to look for long-term reported revenue growth of 20%-30%, and organic revenue growth in excess of 15%.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q4 2005

Q4 2004

% Change

Sales

$73,160

$72,985

$61,811

18.1

Net Profit

--

$12,659

$10,437

21.3

EPS

$0.37

$0.37

$0.30

23.3

Note: The net profit numbers reported include adjustments for facility closing costs. As reported, the company had $11.2 million in net income and earnings of $0.33 per share for the quarter.

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

Margin Checkup

Q4 2005

Q4 2004

% Change

Gross Margin

63.07%

62.43%

0.63

Op. Margin

23.38%

22.05%

1.32

Net Margin

17.34%

16.89%

0.46



Likewise with net profit and EPS, the gross, operating, and net margins reflect the exclusion of certain costs related to facility closures and employee terminations. As reported, the margins were 61.3%, 20.4%, and 15.4%.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2005

Q4 2004

% Change

Cash+ ST Invest.

$143,384

$195,982

(26.8)

Inventory

$67,476

$55,947

20.6

Accounts Rec.

$49,007

$46,765

4.8



Liabilities

Q4 2005

Q4 2004

% Change

Long-Term Debt

$118,378

$118,900

(0.4)

Accounts Pay.

na

na

na



Cash Flow Highlights
Although the company did not provide a cash flow statement, management did announce that operating cash flow was $15.1 million for the quarter and $57 million for the full year. That compares to $39 million last year.

Find out why Fools always follow the money.

Related Companies:

  • Medtronic (NYSE:MDT)
  • Smith & Nephew (NYSE:SNN)
  • Wright Medical (NASDAQ:WMGI)
  • Johnson & Johnson (NYSE:JNJ)
  • Cardinal Health (NYSE:CAH)

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.

Fool contributor Stephen Simpson owns shares of Johnson & Johnson, but he has no financial interest in any of the other stocks mentioned.