NuVasive, Inc. (NUVA) has reported 44.57 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $6.38 million, or $0.11 a share in the quarter, compared with $11.50 million, or $0.22 a share for the same period last year. On an adjusted basis, the company has earned $27.56 million, or $0.53 a share for the quarter.

Revenue during the quarter grew 25.93 percent to $271.11 million from $215.28 million in the previous year period. Gross margin for the quarter contracted 89 basis points over the previous year period to 75.31 percent. Total expenses were 88.91 percent of quarterly revenues, up from 86.28 percent for the same period last year. That has resulted in a contraction of 263 basis points in operating margin to 11.09 percent.

Operating income for the quarter was $30.07 million, compared with $29.54 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $72.76 million.

"NuVasive delivered record fourth quarter results and exceeded expectations for the full year 2016. By all measures, the Company had a tremendous year executing against our market-share taking initiatives, delivering strong revenue growth, including a return to 20% year-over-year growth in our core International markets. We exceeded our profitability targets and integrated strategic acquisitions to augment our leadership in spine and deliver the substantial growth we forecasted as part of the deal models," said Gregory T. Lucier, chairman and chief executive officer of NuVasive.

For fiscal year 2017, Nuvasive expects revenue to be $1,065 million. The company forecasts adjusted revenue to be $1,065 million. The company projects diluted earnings per share to be $1.16. The company expects diluted earnings per share to be $2 on adjusted basis.

The company has spent $304.88 million cash to meet investing activities during the year as against cash outgo of $7.51 million in the last year.

Cash flow from financing activities was $110.82 million for the year as against cash outgo of $30.34 million in the last year period.

Cash and cash equivalents stood at $153.64 million as on Dec. 31, 2016, down 20.12 percent or $38.70 million from $192.34 million on Dec. 31, 2015.

Working capital drops significantly
NuVasive, Inc. has witnessed a decline in the working capital over the last year. It stood at $332.95 million as at Dec. 31, 2016, down 44.80 percent or $270.26 million from $603.21 million on Dec. 31, 2015. Current ratio was at 2.37 as on Dec. 31, 2016, down from 7.06 on Dec. 31, 2015.

Days sales outstanding went up to 29 days for the quarter compared with 27 days for the same period last year.

Days inventory outstanding has decreased to 143 days for the quarter compared with 151 days for the previous year period.

Debt increases substantially
NuVasive, Inc. has witnessed an increase in total debt over the last one year. It stood at $626.11 million as on Dec. 31, 2016, up 67.89 percent or $253.19 million from $372.92 million on Dec. 31, 2015. Short-term debt stood at $61.70 million as on Dec. 31, 2016. Total debt was 39.86 percent of total assets as on Dec. 31, 2016, compared with 28.92 percent on Dec. 31, 2015. Debt to equity ratio was at 0.89 as on Dec. 31, 2016, up from 0.53 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 2.86 for the quarter from 3.99 for the same period last year.