Heska Corporation (HSKA) has reported a 70.18 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $3.45 million, or $0.46 a share in the quarter, compared with $2.03 million, or $0.28 a share for the same period last year.
Revenue during the quarter surged 32.87 percent to $39.54 million from $29.76 million in the previous year period. Gross margin for the quarter contracted 52 basis points over the previous year period to 40.59 percent. Total expenses were 83.52 percent of quarterly revenues, down from 88.02 percent for the same period last year. This has led to an improvement of 450 basis points in operating margin to 16.48 percent.
Operating income for the quarter was $6.52 million, compared with $3.56 million in the previous year period.
Kevin Wilson, Heska's Chief Executive Officer and President, commented, "The fourth quarter of 2016 was another record quarter that capped a record year. During our last earnings release I indicated that we were tracking a robust pipeline, gaining market share, and seeing continued net subscriber growth; all of which supported our view that we would beat our previous expectations. Today I am proud to share that the hard-working men and women of Heska delivered well."
Working capital increases marginally
Heska Corporation has recorded an increase in the working capital over the last year. It stood at $22.86 million as at Dec. 31, 2016, up 1.78 percent or $0.40 million from $22.46 million on Dec. 31, 2015. Current ratio was at 1.71 as on Dec. 31, 2016, down from 2.19 on Dec. 31, 2015.
Debt increases substantially
Heska Corporation has witnessed an increase in total debt over the last one year. It stood at $0.75 million as on Dec. 31, 2016, up 102.16 percent or $0.38 million from $0.37 million on Dec. 31, 2015. Total debt was 0.57 percent of total assets as on Dec. 31, 2016, compared with 0.34 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.01 as on Dec. 31, 2016, when compared with the last year. Interest coverage ratio deteriorated to 57.15 for the quarter from 142.60 for the same period last year.
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