Akorn, Inc. (AKRX) has reported an 1.01 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $32.46 million, or $0.26 a share in the quarter, compared with $32.78 million, or $0.27 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $72.32 million, or $0.58 a share compared with $76.01 million or $0.60 a share, a year ago.
Revenue during the quarter went up marginally by 1.32 percent to $283.67 million from $279.98 million in the previous year period. Gross margin for the quarter contracted 264 basis points over the previous year period to 59.67 percent. Total expenses were 78.57 percent of quarterly revenues, up from 76.97 percent for the same period last year. That has resulted in a contraction of 160 basis points in operating margin to 21.43 percent.
Operating income for the quarter was $60.80 million, compared with $64.48 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $125.33 million compared with $134.58 million in the prior year period. At the same time, adjusted EBITDA margin contracted 389 basis points in the quarter to 44.18 percent from 48.07 percent in the last year period.
Raj Rai, Akorn's Chief Executive Officer, commented, "We are pleased with our performance in 2016. First and foremost, we completed the restatement of our 2014 financials and became current with our SEC filings, which in itself was a major accomplishment. In 2016, we achieved record revenues, surpassing a billion dollars and solidifying Akorn's position among the top specialty generics companies with manufacturing roots in the United States. This would not have happened without the collective efforts and dedication of all Akorn employees."
For fiscal year 2017, Akorn, Inc. expects revenue to be in the range of $1,010 million to $1,060 million for financial year 2017. The company forecasts net income to be in the range of $124 million to $148 million. The company projects adjusted net income to be in the range of $191 million to $215 million. The company projects diluted earnings per share to be in the range of $0.99 to $1.18. The company projects diluted earnings per share to be in the range of $1.53 to $1.72 on adjusted basis.
Operating cash flow drops significantly
Akorn, Inc. has generated cash of $167.76 million from operating activities during the year, down 43.64 percent or $129.89 million, when compared with the last year.
The company has spent $72.92 million cash to meet investing activities during the year as against cash outgo of $53.72 million in the last year. It has incurred net capital expenditure of $72.92 million on net basis during the year, up 148.80 percent or $43.61 million from year ago.
The company has spent $240.33 million cash to carry out financing activities during the year as against cash inflow of $31.91 million in the last year period.
Cash and cash equivalents stood at $200.77 million as on Dec. 31, 2016, down 42.02 percent or $145.49 million from $346.27 million on Dec. 31, 2015.
Debt comes down
Akorn, Inc. has recorded a decline in total debt over the last one year. It stood at $809.98 million as on Dec. 31, 2016, down 22.62 percent or $236.83 million from $1,046.81 million on Dec. 31, 2015. Total debt was 41.04 percent of total assets as on Dec. 31, 2016, compared with 49.55 percent on Dec. 31, 2015.
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