PharMerica Corporation (PMC) has reported 14.63 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $3.50 million, or $0.11 a share in the quarter, compared with $4.10 million, or $0.13 a share for the same period last year. On an adjusted basis, earnings per share were at $0.42 for the quarter compared with $0.45 in the same period last year.
Revenue during the quarter grew 8.06 percent to $566.80 million from $524.50 million in the previous year period. Gross margin for the quarter contracted 13 basis points over the previous year period to 15.51 percent. Total expenses were 98.38 percent of quarterly revenues, down from 98.49 percent for the same period last year. This has led to an improvement of 12 basis points in operating margin to 1.62 percent.
Operating income for the quarter was $9.20 million, compared with $7.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $31.30 million compared with $30.30 million in the prior year period. At the same time, adjusted EBITDA margin contracted 25 basis points in the quarter to 5.52 percent from 5.78 percent in the last year period.
Greg Weishar, PharMerica Corporation's chief executive officer, said, "We posted a great first quarter; showing sequential growth in revenue and gross profit as well as growth in Adjusted EBITDA versus the first quarter of 2016. We believe we are well positioned to deliver on 2017 financial objectives."
For financial year 2017, Pharmerica Corp projects revenue to be in the range of $2,300 million to $2,400 million. The company forecasts diluted earnings per share to be in the range of $1.75 to $1.95 on adjusted basis.
Operating cash flow improves
PharMerica Corporation has generated cash of $72.20 million from operating activities during the quarter, up 10.57 percent or $6.90 million, when compared with the last year period.
The company has spent $56.10 million cash to meet investing activities during the quarter as against cash outgo of $12.10 million in the last year period.
The company has spent $6.10 million cash to carry out financing activities during the quarter as against cash outgo of $50.80 million in the last year period.
Cash and cash equivalents stood at $15.40 million as on Mar. 31, 2017, down 39.61 percent or $10.10 million from $25.50 million on Mar. 31, 2016.
Working capital increases marginally
PharMerica Corporation has recorded an increase in the working capital over the last year. It stood at $307.60 million as at Mar. 31, 2017, up 1.22 percent or $3.70 million from $303.90 million on Mar. 31, 2016. Current ratio was at 2.91 as on Mar. 31, 2017, down from 3.03 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 35 days for the quarter from 48 days for the last year period. Days sales outstanding were almost stable at 37 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 13 days for the quarter compared with 28 days for the previous year period. At the same time, days payable outstanding went down to 15 days for the quarter from 16 for the same period last year.
Debt moves up
PharMerica Corporation has witnessed an increase in total debt over the last one year. It stood at $466.50 million as on Mar. 31, 2017, up 23.54 percent or $88.90 million from $377.60 million on Mar. 31, 2016. Total debt was 37.25 percent of total assets as on Mar. 31, 2017, compared with 32.37 percent on Mar. 31, 2016. Debt to equity ratio was at 0.85 as on Mar. 31, 2017, up from 0.72 as on Mar. 31, 2016.
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
