Chemed Corporation (CHE) has reported a 6.95 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $26.83 million, or $1.62 a share in the quarter, compared with $28.83 million, or $1.65 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $28.64 million, or $1.73 a share compared with $30.93 million or $1.78 a share, a year ago. Revenue during the quarter went up marginally by 1.65 percent to $392.61 million from $386.23 million in the previous year period. Gross margin for the quarter contracted 129 basis points over the previous year period to 28.26 percent. Total expenses were 89.08 percent of quarterly revenues, up from 87.02 percent for the same period last year. That has resulted in a contraction of 206 basis points in operating margin to 10.92 percent.
Operating income for the quarter was $42.87 million, compared with $50.13 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $57.39 million compared with $59.41 million in the prior year period. At the same time, adjusted EBITDA margin contracted 77 basis points in the quarter to 14.62 percent from 15.38 percent in the last year period.
For financial year 2016, Chemed Corporation projects diluted earnings per share to be in the range of $7.20 to $7.30 on adjusted basis.
Operating cash flow improves
Chemed Corporation has generated cash of $128.35 million from operating activities during the nine month period, up 13.50 percent or $15.27 million, when compared with the last year period. The company has spent $29.82 million cash to meet investing activities during the nine month period as against cash outgo of $36.41 million in the last year period.
The company has spent $91.97 million cash to carry out financing activities during the nine month period as against cash outgo of $52.35 million in the last year period.
Cash and cash equivalents stood at $21.28 million as on Sep. 30, 2016, down 44.64 percent or $17.17 million from $38.45 million on Sep. 30, 2015.
Working capital turns negative
Working capital of Chemed Corporation has turned negative to $34.50 million on Sep. 30, 2016 from positive $14.01 million on Sep. 30, 2015. Current ratio was at 0.79 as on Sep. 30, 2016, down from 1.08 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 12 days for the quarter from 16 days for the last year period. Days sales outstanding went down to 24 days for the quarter compared with 29 days for the same period last year.
Days inventory outstanding has decreased to 1 days for the quarter compared with 2 days for the previous year period. At the same time, days payable outstanding went down to 13 days for the quarter from 16 for the same period last year.
Debt comes down
Chemed Corporation has recorded a decline in total debt over the last one year. It stood at $110.62 million as on Sep. 30, 2016, down 19.91 percent or $27.50 million from $138.12 million on Sep. 30, 2015. Total debt was 13.13 percent of total assets as on Sep. 30, 2016, compared with 15.39 percent on Sep. 30, 2015. Debt to equity ratio was at 0.23 as on Sep. 30, 2016, down from 0.28 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
