On Jan. 4, Healthways (NASDAQ:HWAY) released first-quarter earnings for the period ended Nov. 30.
- Revenues increased 29%, and profits increased 83%. This substantial growth was the result of the outstanding performance of its core commercial business, which produced earnings 10% above the high end.
- Cash flow from operations increased 108.4%, thanks to substantial increase in the net income and 18% decline to capital expenditure, resulting in a positive free cash flow.
- The company's guidance for revenues for fiscal 2007 is in a range of $667 million to $701 million, a 62% to 70% increase over 2006 revenues of $412 million.
- Healthways has a strong four-star rating in Motley Fool CAPS, the Fool's community-driven stock rating service.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Sales |
$117.1 |
$90.6 |
29.2% |
|
Net Profit |
$11.8 |
$6.5 |
83.3% |
|
EPS |
$0.32 |
$0.18 |
77.8% |
|
Diluted Shares |
36.6 |
36.0 |
1.8% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
33.8% |
29.5% |
4.2 |
|
Operating Margin |
17.2% |
12.1% |
5.1 |
|
Net Margin |
10.1% |
7.1% |
3.0 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$161.9 |
$68.7 |
135.7% |
|
Accounts Rec. |
$60.4 |
$50.6 |
19.4% |
|
Inventory | N/A | N/A | N/A |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$12.2 |
$4.7 |
159.6% |
|
Long-Term Debt |
$0.4 |
$0.6 |
(33.3%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$9.4 |
$4.5 |
108.4% |
|
Capital Expenditures |
$3.9 |
$4.7 |
(18.0%) |
|
Free Cash Flow |
$5.5 |
($0.2) |
N/A |
Find out why Fools always follow the money.
Related Companies:
- Pediatrix Medical (NYSE:PDX)
- Psychiatric Solutions (NASDAQ:PSYS)
- United Surgical Partners (NASDAQ:USPI)
- NightHawk Radiology (NASDAQ:NHWK)
Related Foolishness:
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