Merit Medical Systems, Inc (MMSI) has reported 240.22 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $14.80 million, or $0.32 a share in the quarter, compared with $4.35 million, or $0.10 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $12.67 million, or $0.28 a share compared with $8.30 million or $0.19 a share, a year ago.
Revenue during the quarter grew 23.89 percent to $171.07 million from $138.08 million in the previous year period. Gross margin for the quarter expanded 87 basis points over the previous year period to 44.39 percent. Total expenses were 96.72 percent of quarterly revenues, up from 94.42 percent for the same period last year. That has resulted in a contraction of 230 basis points in operating margin to 3.28 percent.
Operating income for the quarter was $5.61 million, compared with $7.71 million in the previous year period.
“Our management team is pleased with our performance during the first quarter, especially with the activities involved in the integration of the acquisitions of DFINE, the critical care division of Argon and the assets of Catheter Connections,” said Fred P. Lampropoulos, Merit’s Chairman and Chief Executive Officer. “We delivered strong revenue growth across all sales divisions in the first quarter.”
For fiscal year 2017, Merit Medical Systems, Inc expects revenue to be in the range of $713 million to $723 million and its diluted earnings per share to be in the range of $0.80 to $0.86and adjusted diluted earnings per share to be in the range of $1.15 to $1.20.
Working capital increases sharply
Merit Medical Systems, Inc has recorded an increase in the working capital over the last year. It stood at $167.05 million as at Mar. 31, 2017, up 33.98 percent or $42.37 million from $124.69 million on Mar. 31, 2016. Current ratio was at 2.59 as on Mar. 31, 2017, up from 2.46 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 77 days for the quarter from 133 days for the last year period. Days sales outstanding went down to 47 days for the quarter compared with 51 days for the same period last year.
Days inventory outstanding has decreased to 64 days for the quarter compared with 126 days for the previous year period. At the same time, days payable outstanding went down to 33 days for the quarter from 45 for the same period last year.
Debt moves up marginally
Merit Medical Systems, Inc has witnessed an increase in total debt over the last one year. It stood at $237.41 million as on Mar. 31, 2017, up 3.94 percent or $9 million from $228.40 million on Mar. 31, 2016. Total debt was 23.39 percent of total assets as on Mar. 31, 2017, compared with 28.43 percent on Mar. 31, 2016. Debt to equity ratio was at 0.36 as on Mar. 31, 2017, down from 0.48 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 2.07 for the quarter from 5.80 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
