Exactech, Inc (EXAC) has reported 9.97 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $3.16 million, or $0.22 a share in the quarter, compared with $2.88 million, or $0.20 a share for the same period last year. Revenue during the quarter grew 6.55 percent to $59.92 million from $56.24 million in the previous year period. Gross margin for the quarter contracted 182 basis points over the previous year period to 68.67 percent. Total expenses were 92.34 percent of quarterly revenues, up from 91.92 percent for the same period last year. That has resulted in a contraction of 42 basis points in operating margin to 7.66 percent.
Operating income for the quarter was $4.59 million, compared with $4.54 million in the previous year period.
Exactech Chief executice officer and President David Petty said, "We were very pleased with strong double digit growth in our Extremities, Knee and Hip businesses. The momentum in our Extremities segment is based on the continuing successful adoption of the Equinoxe shoulder system and notably with our highly competitive range of glenoid solutions. The Equinoxe Humeral Reconstruction Prosthesis launched earlier in the year also contributed positively to the good quarter. Success in developing our U.S. sales channels was helpful in all three major joint segments. We continued ramping up availability of the Alteon Monoblock Revision Hip stem, which supported 17% hip growth for the quarter. Similarly, our knee revision system contributed positively to 11% knee growth this quarter. In the fourth quarter and the first half of next year, we are moving from the pilot launch phase into a limited launch of the revision knee. This should be increasingly important to growth in coming quarters. We were disappointed with results in our smaller segments, attributable in part to pricing pressures and slower adoption of new products.
Exactech projects revenue to be in the range of $256 million to $258 million for financial year 2016. For financial year 2016, the company forecasts diluted earnings per share to be in the range of $1.15 to $1.17.
Working capital decreases marginally
Exactech, Inc has witnessed a decline in the working capital over the last year. It stood at $114.29 million as at Sep. 30, 2016, down 4.39 percent or $5.25 million from $119.55 million on Sep. 30, 2015. Current ratio was at 4.75 as on Sep. 30, 2016, down from 5.54 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 203 days for the quarter from 414 days for the last year period. Days sales outstanding went down to 80 days for the quarter compared with 86 days for the same period last year.
Days inventory outstanding has decreased to 190 days for the quarter compared with 400 days for the previous year period. At the same time, days payable outstanding went down to 67 days for the quarter from 72 for the same period last year.
Debt comes down marginally
Exactech, Inc has recorded a decline in total debt over the last one year. It stood at $20 million as on Sep. 30, 2016, down 4.76 percent or $1 million from $21 million on Sep. 30, 2015. Total debt was 6.67 percent of total assets as on Sep. 30, 2016, compared with 7.58 percent on Sep. 30, 2015. Debt to equity ratio was at 0.08 as on Sep. 30, 2016, down from 0.09 as on Sep. 30, 2015. Interest coverage ratio improved to 24.67 for the quarter from 16.05 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
