On Feb. 22, Emdeon
- On Nov. 16, 2006, Emdeon completed the sale of a 52% interest in its Emdeon Business Services segment, excluding the VIP's business, to an affiliate of General Atlantic LLC for $1.76 billion.
- Revenues dropped by 12.8%, mainly because Emdeon Business Services is included in Emdeon's consolidated financial results for the first 47 days of the fourth quarter of 2006 as against the entire fourth quarter of 2005.
- EPS jumped due to lower cost of operations and a significant buyback of shares.
- The company has given guidance of total revenue in the range of $531 million to $554 million, which translates into EPS of $0.17 to 0.24 for fiscal 2007.
- The company's free cash flow improved, mainly due to higher operational cash flows.
- The company repurchased 129.2 million shares of its common stock, representing about 45% of the outstanding shares immediately prior to a tender offer, at $12 per share. Since this repurchase was made in December and the year-end share count is based on a weighted average over the full year, the full impact of this repurchase is not reflected in the year-end diluted share count.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$230.1 |
$263.8 |
(12.8%) |
|
Net Profit |
$345.5 |
$23.5 |
1373.8% |
|
EPS |
$1.14 |
$0.07 |
1528.6% |
|
Diluted Shares |
308.3 |
355.8 |
(13.4%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006** |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
48.8% |
42.9% |
5.9 |
|
Operating Margin |
16.5% |
7.2% |
9.3 |
|
Net Margin |
(3.0%) |
8.9% |
(11.9) |
**Margins exclude one time gain from sale of EBS segment.
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$648.8 |
$423.0 |
53.4% |
|
Accounts Rec. |
$121.6 |
$195.3 |
(37.7%) |
|
Inventory |
$9.9 |
$10.8 |
(8.1%) |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$4.0 |
$7.7 |
(48.4%) |
|
Long-Term Debt |
$664.4 |
$664.4 |
0.0% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
2006 |
2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$199.0 |
$161.3 |
23.4% |
|
Capital Expenditures |
$54.9 |
$51.3 |
7.0% |
|
Free Cash Flow |
$144.1 |
$110.0 |
31.0% |
Find out why Fools always follow the money.
Related Foolishness:
- A Clean Bill of Health at Cardinal
- Emdeon's Checkup: Fool by Numbers
- Best Small Cap: Quality Systems
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.
