ICU Medical, Inc. (ICUI) has reported a 207.62 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $55.86 million, or $2.86 a share in the quarter, compared with $18.16 million, or $1.08 a share for the same period last year. On an adjusted basis, earnings per share were at $1.68 for the quarter compared with $1.26 in the same period last year.
Revenue during the quarter surged 175.71 percent to $247.74 million from $89.86 million in the previous year period. Gross margin for the quarter contracted 1889 basis points over the previous year period to 35.90 percent. Operating margin for the quarter stood at negative 6.86 percent as compared to a positive 26.65 percent for the previous year period.
Operating loss for the quarter was $16.98 million, compared with an operating income of $23.94 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $50.07 million compared with $32.70 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1618 basis points in the quarter to 20.21 percent from 36.39 percent in the last year period.
Vivek Jain, ICU Medical's Chief Executive Officer, said, "Revenues were in-line with our expectations and our adjusted EBITDA and adjusted earnings per share were slightly ahead of our expectations due to minor discrete accounting and tax benefits. Integration activities are progressing as planned.”
Operating cash flow turns negative
ICU Medical, Inc. has spent $76.61 million cash to meet operating activities during the quarter as against cash inflow of $17.30 million in the last year period.
The company has spent $173.90 million cash to meet investing activities during the quarter as against cash inflow of $0.56 million in the last year period.
Cash flow from financing activities was $6.60 million for the quarter as against cash outgo of $10.28 million in the last year period.
Cash and cash equivalents stood at $201.86 million as on Mar. 31, 2017, down 41.89 percent or $145.51 million from $347.37 million on Mar. 31, 2016.
Working capital increases sharply
ICU Medical, Inc. has recorded an increase in the working capital over the last year. It stood at $725.86 million as at Mar. 31, 2017, up 50.77 percent or $244.44 million from $481.43 million on Mar. 31, 2016. Current ratio was at 5.52 as on Mar. 31, 2017, down from 15.16 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 147 days for the quarter from 132 days for the last year period. Days sales outstanding went down to 36 days for the quarter compared with 57 days for the same period last year.
Days inventory outstanding has increased to 126 days for the quarter compared with 104 days for the previous year period. At the same time, days payable outstanding went down to 14 days for the quarter from 30 for the same period last year.
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