VCA Inc. (WOOF) has reported a 10.53 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $51.09 million, or $0.62 a share in the quarter, compared with $46.23 million, or $0.57 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $59.62 million, or $0.73 a share compared with $53.69 million or $0.66 a share, a year ago. Revenue during the quarter grew 20.38 percent to $678.25 million from $563.44 million in the previous year period. Gross margin for the quarter contracted 150 basis points over the previous year period to 22.77 percent. Total expenses were 85.87 percent of quarterly revenues, up from 84.72 percent for the same period last year. That has resulted in a contraction of 115 basis points in operating margin to 14.13 percent.
Operating income for the quarter was $95.82 million, compared with $86.09 million in the previous year period.
However, the adjusted operating income for the quarter stood at $110.62 million compared to $95.24 million in the prior year period. At the same time, adjusted operating margin contracted 59 basis points in the quarter to 16.31 percent from 16.90 percent in the last year period.
Bob Antin, Chairman and CEO, stated, "We had a good quarter highlighted by 10.6% growth in our adjusted diluted earnings per common share. We continue to experience organic revenue growth and increasing gross margins in both our core Animal Hospital and Laboratory businesses."
Operating cash flow improves VCA Inc. has generated cash of $100.29 million from operating activities during the quarter, up 6.80 percent or $6.38 million, when compared with the last year period. The company has spent $116.49 million cash to meet investing activities during the quarter as against cash outgo of $193.52 million in the last year period. It has incurred capital expenditure of $28.57 million on net basis during the quarter, up 10.76 percent or $2.78 million from year ago period.
Cash flow from financing activities was $24.17 million for the quarter, down 67.74 percent or $50.74 million, when compared with the last year period.
Cash and cash equivalents stood at $89.53 million as on Mar. 31, 2017, up 20.21 percent or $15.05 million from $74.48 million on Mar. 31, 2016.
Working capital turns negative
Working capital of VCA Inc. has turned negative to $19.17 million on Mar. 31, 2017 from positive $3.42 million on Mar. 31, 2016. Current ratio was at 0.93 as on Mar. 31, 2017, down from 1.01 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 6 days for the quarter from 13 days for the last year period. Days sales outstanding went down to 11 days for the quarter compared with 13 days for the same period last year.
Days inventory outstanding has decreased to 5 days for the quarter compared with 11 days for the previous year period. At the same time, days payable outstanding was almost stable at 10 days for the quarter, when compared with the previous year period.
Debt increases substantially VCA Inc. has witnessed an increase in total debt over the last one year. It stood at $1,386.48 million as on Mar. 31, 2017, up 45.55 percent or $433.91 million from $952.57 million on Mar. 31, 2016. Total debt was 40.06 percent of total assets as on Mar. 31, 2017, compared with 35.76 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
