Revenue during the quarter grew 8.32 percent to $1,078.74 million from $995.87 million in the previous year period. Gross margin for the quarter contracted 7 basis points over the previous year period to 7.88 percent. Total expenses were 99.21 percent of quarterly revenues, up from 97.49 percent for the same period last year. That has resulted in a contraction of 172 basis points in operating margin to 0.79 percent.

Operating income for the quarter was $8.55 million, compared with $25.04 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $26.82 million compared with $29.02 million in the prior year period. At the same time, adjusted EBITDA margin contracted 43 basis points in the quarter to 2.49 percent from 2.91 percent in the last year period.

Phil Hagerman, chief executive officer and chairman of Diplomat, commented “Our financial results in the first quarter of 2017 were in-line with our expectations. Diplomat’s high-touch, high-service model serves as a competitive advantage in the growing trend of independent specialty pharmacies leading smaller limited distribution panels. We further expanded our hub and pharma service offering through the acquisition of WRB Communications, Inc., and firmly believe these services will prove to be highly complementary to our core specialty pharmacy business.” Mr. Hagerman continued, “I’m also incredibly pleased with the additions we’ve made to the Diplomat team, including our new chief financial officer and treasurer, Atul Kavthekar, and our new board members.”

Diplomat Pharmacy, Inc. forecasts revenue to be in the range of $4.30 million to $4.70 million for fiscal year 2017. For financial year 2017, Diplomat Pharmacy, Inc. projects net income to be in the range of $6.50 million to $15.50 million. For the financial year 2017, Diplomat Pharmacy, Inc. expects adjusted net income to be in the range of $36.96 million to $48.08 million. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $0.09 to $0.23. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $0.54 to $0.70 on adjusted basis.

The company has spent $28.43 million cash to meet investing activities during the quarter as against cash outgo of $5.75 million in the last year period.

The company has spent $7.24 million cash to carry out financing activities during the quarter as against cash outgo of $1.59 million in the last year period.

Cash and cash equivalents stood at $16.58 million as on Mar. 31, 2017, up 12.92 percent or $1.90 million from $14.68 million on Mar. 31, 2016.

Working capital increases
Diplomat Pharmacy, Inc. has recorded an increase in the working capital over the last year. It stood at $140.49 million as at Mar. 31, 2017, up 8.29 percent or $10.75 million from $129.74 million on Mar. 31, 2016. Current ratio was at 1.41 as on Mar. 31, 2017, up from 1.36 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 3 days for the quarter from 12 days for the last year period. Days sales outstanding went down to 21 days for the quarter compared with 24 days for the same period last year.

Days inventory outstanding has decreased to 9 days for the quarter compared with 17 days for the previous year period. At the same time, days payable outstanding went down to 27 days for the quarter from 29 for the same period last year.