Revenue during the quarter grew 16.01 percent to $1,144.84 million from $986.82 million in the previous year period. Gross margin for the quarter contracted 45 basis points over the previous year period to 7.32 percent. Total expenses were 99.41 percent of quarterly revenues, up from 99.29 percent for the same period last year. That has resulted in a contraction of 11 basis points in operating margin to 0.59 percent.

Operating income for the quarter was $6.80 million, compared with $7 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $26.08 million compared with $28.10 million in the prior year period. At the same time, adjusted EBITDA margin contracted 57 basis points in the quarter to 2.28 percent from 2.85 percent in the last year period.

Phil Hagerman, chief executive officer and chairman of Diplomat, commented "The fourth quarter saw continued strength in our oncology and specialty infusion businesses, but as expected, our hepatitis C business remained under pressure. We are aggressively pursuing a positive resolution around DIR fees and in the meantime, we have instituted cost savings initiatives that will help to streamline our operations. For 2017, we are focused on growing our core oncology business and higher margin infusion and service offerings. Additionally, we remain acquisitive and are evaluating external growth opportunities."

For fiscal year 2017, Diplomat Pharmacy, Inc. projects revenue to be in the range of $4,300 million to $4,700 million. It expects net income to be in the range of $6.50 million to $15.50 million.  It forecasts adjusted net income to be in the range of $36.96 million to $48.08 million. It forecasts diluted earnings per share to be in the range of $0.09 to $0.23. It forecasts diluted earnings per share to be in the range of $0.54 to $0.70 on adjusted basis for the same period.

The company has spent $85.97 million cash to meet investing activities during the year as against cash outgo of $311.57 million in the last year.

Cash flow from financing activities was $34.99 million for the year, down 88.01 percent or $256.78 million, when compared with the last year.

Cash and cash equivalents stood at $7.95 million as on Dec. 31, 2016, down 71.18 percent or $19.65 million from $27.60 million on Dec. 31, 2015.

Working capital increases sharply
Diplomat Pharmacy, Inc. has recorded an increase in the working capital over the last year. It stood at $134.46 million as at Dec. 31, 2016, up 50.97 percent or $45.40 million from $89.07 million on Dec. 31, 2015. Current ratio was at 1.35 as on Dec. 31, 2016, up from 1.24 on Dec. 31, 2015.

Debt increases substantially
Diplomat Pharmacy, Inc. has witnessed an increase in total debt over the last one year. It stood at $146.94 million as on Dec. 31, 2016, up 30.37 percent or $34.23 million from $112.71 million on Dec. 31, 2015. Total debt was 13.26 percent of total assets as on Dec. 31, 2016, compared with 11.20 percent on Dec. 31, 2015. Debt to equity ratio was at 0.24 as on Dec. 31, 2016, up from 0.22 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 3.81 for the quarter from 4.75 for the same period last year.