Akorn (AKRX) has reported a marginal fall of 0.12 percent in profit for the quarter ended Sep. 30, 2016. The company has earned $47.91 million, or $0.38 a share, compared with $47.97 million or $0.39 a share, a year ago. On an adjusted basis, net profit for the quarter was almost stable at $70.26 million, or $0.56 a share, when compared with the last year period. 

Revenue during the quarter grew 10.63 percent to $284.10 million from $256.80 million in the previous year period. Gross margin for the quarter contracted 356 basis points over the previous year period to 59.92 percent. Total expenses were 69.44 percent of quarterly revenues, up from 64.65 percent for the same period last year. That has resulted in a contraction of 478 basis points in operating margin to 30.56 percent.

Operating income for the quarter was $86.83 million, compared with $90.77 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $127.42 million compared with $125.35 million in the prior year period. At the same time, adjusted EBITDA margin contracted 396 basis points in the quarter to 44.85 percent from 48.81 percent in the last year period.  

Raj Rai, Akorn's chief executive officer, commented, "We are pleased with our third quarter results. We remain focused on investing in our company to support future growth endeavors through expansion of our research and development capabilities, modernization of our plants, expansion of our capacities and technology enhancements."

The company has spent $46.79 million cash to meet investing activities during the nine month period as against cash outgo of $49.21 million in the last year period. It has incurred net capital expenditure of $46.79 million on net basis during the nine month period, up 109.80 percent or $24.49 million from year ago period.

The company has spent $221.24 million cash to carry out financing activities during the nine month period as against cash inflow of $41.13 million in the last year period.

Cash and cash equivalents stood at $174.05 million as on Sep. 30, 2016, down 44.65 percent or $140.41 million from $314.46 million on Sep. 30, 2015.

Working capital increases
Akorn has recorded an increase in the working capital over the last year. It stood at $488.70 million as at Sep. 30, 2016, up 5.99 percent or $27.60 million from $461.10 million on Sep. 30, 2015. Current ratio was at 4.14 as on Sep. 30, 2016, up from 2.94 on Sep. 30, 2015.

Days inventory outstanding has decreased to 73 days for the quarter compared with 163 days for the previous year period.