Endo International plc (ENDP) saw its loss widen to $173.83 million, or $0.78 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $133.87 million, or $0.60 a share. On the other hand, adjusted net income for the quarter stood at $275.24 million, or $1.23 a share compared with $240.73 million or $1.08 a share, a year ago.
Revenue during the quarter grew 7.69 percent to $1,037.60 million from $963.54 million in the previous year period. Gross margin for the quarter expanded 700 basis points over the previous year period to 35.53 percent. Operating margin for the quarter stood at negative 6.49 percent as compared to a negative 9.61 percent for the previous year period.
Operating loss for the quarter was $67.39 million, compared with an operating loss of $92.59 million in the previous year period.
However, the adjusted operating income for the quarter stood at $437.40 million compared to $358.70 million in the prior year period. At the same time, adjusted operating margin improved 493 basis points in the quarter to 42.16 percent from 37.23 percent in the last year period.
"During Endo's February 2017 earnings call, we outlined key priorities that we believe will enable us to achieve our Company's vision. As we noted, we expect this to take time, but our strong first-quarter performance illustrates how our renewed focus on execution is beginning to yield results. The quarter benefited from new Generic product introductions and continued strong growth from our Branded Specialty products business," said Paul Campanelli, President and CEO of Endo. "As a result, we generated substantial adjusted EBITDA in the quarter that was further enhanced by cost savings from our 2016 and 2017 restructurings and related initiatives."
For financial year 2017, Endo International plc projects revenue to be in the range of $3,450 million to $3,600 million. The company forecasts diluted loss per share to be in the range of $0.80 to $0.50 and forecasts diluted earnings per share to be in the range of $3.45 to $3.75 on adjusted basis.
Operating cash flow turns positive
Endo International plc has generated cash of $167.76 million from operating activities during the quarter as against cash outgo of $45.77 million in the last year period.
The company has spent $7.12 million cash to meet investing activities during the quarter as against cash inflow of $31.07 million in the last year period.
The company has spent $53.19 million cash to carry out financing activities during the quarter as against cash outgo of $38.65 million in the last year period.
Cash and cash equivalents stood at $617.59 million as on Mar. 31, 2017, up 178.23 percent or $395.62 million from $221.97 million on Mar. 31, 2016.
Working capital turns positive
Working capital of Endo International plc has turned positive to $273.56 million on Mar. 31, 2017 from negative $127.06 million on Mar. 31, 2016. Current ratio was at 1.13 as on Mar. 31, 2017, up from 0.96 on Mar. 31, 2016.
Days sales outstanding went down to 105 days for the quarter compared with 158 days for the same period last year.
Days inventory outstanding has decreased to 37 days for the quarter compared with 93 days for the previous year period.
Debt comes down marginally
Endo International plc has recorded a decline in total debt over the last one year. It stood at $8,224.56 million as on Mar. 31, 2017, down 3.97 percent or $340.21 million from $8,564.77 million on Mar. 31, 2016. Total debt was 62.22 percent of total assets as on Mar. 31, 2017, compared with 45.96 percent on Mar. 31, 2016. Debt to equity ratio was at 3.76 as on Mar. 31, 2017, up from 1.45 as on Mar. 31, 2016.
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