Teleflex Incorporated (TFX) has reported 20.75 percent fall in profit for the quarter ended Apr. 02, 2017. The company has earned $40.17 million, or $0.86 a share in the quarter, compared with $50.69 million, or $1.04 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $82.90 million, or $1.80 a share compared with $68.50 million or $1.52 a share, a year ago.
Revenue during the quarter grew 14.82 percent to $487.88 million from $424.89 million in the previous year period. Gross margin for the quarter contracted 61 basis points over the previous year period to 52.38 percent. Total expenses were 87.53 percent of quarterly revenues, up from 84.11 percent for the same period last year. That has resulted in a contraction of 342 basis points in operating margin to 12.47 percent.
Operating income for the quarter was $60.82 million, compared with $67.50 million in the previous year period.
"Following a solid fourth quarter performance to end 2016, I am pleased to report that the Company is off to a strong start in 2017, aided in part by the additional shipping days in the quarter as compared to the first quarter of 2016," said Benson Smith, chairman and chief executive officer.
For financial year 2017, Teleflex projects revenue to grow in the range of 10.00 percent to 11.50 percent. The company forecasts diluted earnings per share to be in the range of $5.59 to $5.66. The company forecasts diluted earnings per share to be in the range of $8.05 to $8.23 on adjusted basis.
Operating cash flow improves significantly
Teleflex Incorporated has generated cash of $90.67 million from operating activities during the quarter, up 35.93 percent or $23.97 million, when compared with the last year period.
The company has spent $982.09 million cash to meet investing activities during the quarter as against cash outgo of $6.57 million in the last year period. It has incurred net capital expenditure of $6.56 million on net basis during the quarter, down 0.14 percent or $0.01 million from year ago period.
Cash flow from financing activities was $1,021.26 million for the quarter as against cash outgo of $11.07 million in the last year period.
Cash and cash equivalents stood at $689.13 million as on Apr. 02, 2017, up 75.55 percent or $296.57 million from $392.56 million on Mar. 26, 2016.
Working capital increases sharply
Teleflex Incorporated has recorded an increase in the working capital over the last year. It stood at $1,002.77 million as at Apr. 02, 2017, up 144.38 percent or $592.44 million from $410.33 million on Mar. 26, 2016. Current ratio was at 3.56 as on Apr. 02, 2017, up from 1.61 on Mar. 26, 2016.
Days sales outstanding went up to 51 days for the quarter compared with 27 days for the same period last year.
Days inventory outstanding was almost stable at 70 days for the quarter, when compared with the last year period.
Debt increases substantially
Teleflex Incorporated has witnessed an increase in total debt over the last one year. It stood at $2,088.89 million as on Apr. 02, 2017, up 96.48 percent or $1,025.72 million from $1,063.17 million on Mar. 26, 2016. Total debt was 39.92 percent of total assets as on Apr. 02, 2017, compared with 26.96 percent on Mar. 26, 2016. Debt to equity ratio was at 0.94 as on Apr. 02, 2017, up from 0.51 as on Mar. 26, 2016. Interest coverage ratio deteriorated to 3.43 for the quarter from 4.90 for the same period last year.
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