Revenue during the quarter went up marginally by 2.65 percent to $534.40 million from $520.60 million in the previous year period. Gross margin for the quarter contracted 99 basis points over the previous year period to 15.66 percent. Total expenses were 97.94 percent of quarterly revenues, up from 96.16 percent for the same period last year. That has resulted in a contraction of 178 basis points in operating margin to 2.06 percent.

Operating income for the quarter was $11 million, compared with $20 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $35.60 million compared with $34.70 million in the prior year period. At the same time, adjusted EBITDA margin was almost stable in the quarter to 6.66 percent when compared with the last year period.

Greg Weishar, PharMerica Corporation's chief executive officer, said, "The Company delivered strong sequential growth in revenues and earnings for the quarter in both the core Institutional Pharmacy business and Diversified Pharmacy businesses. In addition, the Company completed two institutional pharmacy acquisitions during the fourth quarter Express Care and Stanley which primarily serve the fast growing assisted living facility markets in North Carolina and Virginia. As we have for the past several years, during 2016 we acquired in excess of $100 million in annualized revenues."

For fiscal year 2017, PharMerica Corporation forecasts revenue to be in the range of $2,300 million to $2,400 million. It expects diluted earnings per share to be in the range of $1.75 to $1.95 on adjusted basis for the same period.

The company has spent $91.70 million cash to meet investing activities during the year as against cash outgo of $104.10 million in the last year. It has incurred net capital expenditure of $34.10 million on net basis during the year, up 66.34 percent or $13.60 million from year ago.

Cash flow from financing activities was $43.20 million for the year, down 42.71 percent or $32.20 million, when compared with the last year.

Cash and cash equivalents stood at $5.40 million as on Dec. 31, 2016, down 76.62 percent or $17.70 million from $23.10 million on Dec. 31, 2015.

Working capital increases
PharMerica Corporation has recorded an increase in the working capital over the last year. It stood at $370.10 million as at Dec. 31, 2016, up 8.18 percent or $28 million from $342.10 million on Dec. 31, 2015. Current ratio was at 3.03 as on Dec. 31, 2016, down from 3.42 on Dec. 31, 2015.

Debt moves up
PharMerica Corporation has witnessed an increase in total debt over the last one year. It stood at $473.40 million as on Dec. 31, 2016, up 11.34 percent or $48.20 million from $425.20 million on Dec. 31, 2015. Total debt was 36.43 percent of total assets as on Dec. 31, 2016, compared with 36.86 percent on Dec. 31, 2015. Debt to equity ratio was at 0.87 as on Dec. 31, 2016, up from 0.82 as on Dec. 31, 2015.