On Nov. 2, Emdeon (NASDAQ:HLTH) released third-quarter earnings for the period ended Sept. 30. This simplifier of health-care processes includes WebMD Health (NASDAQ:WBMD) as a subsidiary.

  • The services division powered most of the 14.8% revenue increase.

  • Free cash flow surged 119.1% to $98 million.

  • Both Emdeon and WebMD need a few more players to express their thoughts before they carry an official rating in Motley Fool CAPS. Do you have an opinion?

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$300

$261

14.8%

Net Profit*

$24

$13

84.1%

EPS

$0.08

$0.03

166.7%

Diluted Shares

300

370

(19.0%)

*Net profits exclude income from discounted operations.

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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

43.38%

41.74%

1.64

Operating Margin

8.47%

4.83%

3.64

Net Margin

7.89%

4.92%

2.97

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$947

$685

38.2%

Accounts Rec.

$101

$230

(56.0%)

Inventory

$9

$13

(29.1%)


Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$7

$11

(34.3%)

Long-Term Debt

$650

$650

0.0%



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$136

$84

62.4%

Capital Expenditures

$38

$39

(2.2%)

Free Cash Flow

$98

$45

119.1%



Find out why Fools always follow the money.

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Related Foolishness:

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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.