Emergent Biosolutions, Inc. (EBS) has reported a 42.24 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $21.34 million, or $0.45 a share in the quarter, compared with $36.94 million, or $0.79 a share for the same period last year.
Revenue during the quarter dropped 9.76 percent to $142.91 million from $158.38 million in the previous year period. Gross margin for the quarter contracted 543 basis points over the previous year period to 72.32 percent. Total expenses were 75.18 percent of quarterly revenues, up from 60.12 percent for the same period last year. That has resulted in a contraction of 1505 basis points in operating margin to 24.82 percent.
Operating income for the quarter was $35.48 million, compared with $63.16 million in the previous year period.
Working capital decreases marginally
Emergent Biosolutions has witnessed a decline in the working capital over the last year. It stood at $369.69 million as at Sep. 30, 2016, down 3.92 percent or $15.08 million from $384.76 million on Sep. 30, 2015. Current ratio was at 4.35 as on Sep. 30, 2016, down from 5.34 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 54 days for the quarter from 157 days for the last year period. Days sales outstanding went up to 63 days for the quarter compared with 50 days for the same period last year.
Days inventory outstanding has decreased to 94 days for the quarter compared with 215 days for the previous year period. At the same time, days payable outstanding went down to 103 days for the quarter from 108 for the same period last year.
Debt moves up
Emergent Biosolutions has witnessed an increase in total debt over the last one year. It stood at $267.79 million as on Sep. 30, 2016, up 5.85 percent or $14.79 million from $253 million on Sep. 30, 2015. Short-term debt stood at $20 million as on Sep. 30, 2016. Total debt was 28.73 percent of total assets as on Sep. 30, 2016, compared with 25.91 percent on Sep. 30, 2015. Debt to equity ratio was at 0.49 as on Sep. 30, 2016, up from 0.42 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 17.31 for the quarter from 38.63 for the same period last year.
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