Depomed, Inc. (DEPO) saw its loss widen to $44.37 million, or $0.72 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $30.67 million, or $0.51 a share. On the other hand, adjusted net income for the quarter stood at $23.04 million, or $0.30 a share compared with $13.61 million or $0.18 a share, a year ago.
Revenue during the quarter grew 11.46 percent to $123.91 million from $111.17 million in the previous year period. Gross margin for the quarter expanded 61 basis points over the previous year period to 81.72 percent. Operating margin for the quarter period stood at positive 14.45 percent as compared to a negative 23.90 percent for the previous year period.
Operating income for the quarter was $17.90 million, compared with an operating loss of $26.57 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $51.37 million compared with $38.71 million in the prior year period. At the same time, adjusted EBITDA margin improved 664 basis points in the quarter to 41.45 percent from 34.82 percent in the last year period.
"In 2016, we achieved key milestones strengthening our portfolio and de-leveraging our balance sheet. We ended the year with record annual and quarterly revenue and EBITDA. In addition, we posted all-time net sales highs for every one of our brands," said Jim Schoeneck, president and chief executive officer of Depomed.
For financial year 2017, Depomed projects revenue to be in the range of $490 million to $520 million.
Debt comes down
Depomed, Inc. has recorded a decline in total debt over the last one year. It stood at $718.78 million as on Dec. 31, 2016, down 10.19 percent or $81.55 million from $800.32 million on Dec. 31, 2015. Depomed has recorded a decline in long-term debt over the last one year. It stood at $718.78 million as on Dec. 31, 2016, down 10.19 percent or $81.55 million from $800.32 million on Dec. 31, 2015. Total debt was 58.66 percent of total assets as on Dec. 31, 2016, compared with 58.70 percent on Dec. 31, 2015. Debt to equity ratio was at 2.87 as on Dec. 31, 2016, up from 2.54 as on Dec. 31, 2015.
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