Bio Techne Corporation (TECH) has reported a 28.29 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $16.28 million, or $0.43 a share in the quarter, compared with $22.71 million, or $0.61 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $31.64 million, or $0.84 a share compared with $29.43 million or $0.79 a share, a year ago.
Revenue during the quarter grew 16.19 percent to $130.58 million from $112.38 million in the previous year period. Gross margin for the quarter contracted 240 basis points over the previous year period to 64.69 percent. Total expenses were 80.52 percent of quarterly revenues, up from 72.39 percent for the same period last year. That has resulted in a contraction of 813 basis points in operating margin to 19.48 percent.
Operating income for the quarter was $25.44 million, compared with $31.03 million in the previous year period.
"I am delighted in our accomplishments this quarter," said Chuck Kummeth, president and chief executive officer of Bio Techne. "Not only did we have another record quarter with organic growth of 10%, but we did this while implementing a completely new enterprise resource planning (ERP) system in our Minneapolis headquarters. An outstanding effort across the organization."
Working capital increases marginally
Bio Techne Corporation has recorded an increase in the working capital over the last year. It stood at $203.14 million as at Sep. 30, 2016, up 3.66 percent or $7.18 million from $195.96 million on Sep. 30, 2015. Current ratio was at 2.90 as on Sep. 30, 2016, down from 5.35 on Sep. 30, 2015.
Days sales outstanding went up to 63 days for the quarter compared with 58 days for the same period last year.
Days inventory outstanding has decreased to 70 days for the quarter compared with 135 days for the previous year period.
Debt increases substantially
Bio Techne Corporation has witnessed an increase in total debt over the last one year. It stood at $375.90 million as on Sep. 30, 2016, up 128.69 percent or $211.53 million from $164.37 million on Sep. 30, 2015. Total debt was 24.77 percent of total assets as on Sep. 30, 2016, compared with 14.57 percent on Sep. 30, 2015. Debt to equity ratio was at 0.42 as on Sep. 30, 2016, up from 0.20 as on Sep. 30, 2015.
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