VWR Corporation (VWR) has reported 269.09 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $40.60 million, or $0.31 a share in the quarter, compared with $11 million, or $0.08 a share for the same period last year. On an adjusted basis, earnings per share were at $0.44 for the quarter compared with $0.38 in the same period last year.
Revenue during the quarter grew 3.71 percent to $1,136.10 million from $1,095.50 million in the previous year period. Gross margin for the quarter expanded 26 basis points over the previous year period to 27.59 percent. Total expenses were 92.68 percent of quarterly revenues, up from 92.60 percent for the same period last year. That has resulted in a contraction of 8 basis points in operating margin to 7.32 percent.
Operating income for the quarter was $83.20 million, compared with $81.10 million in the previous year period.
Manuel Brocke-Benz, president and chief executive officer of VWR, commented: "VWR continues to execute on its strategy, and our solid year-to-date performance sets the foundation for record financial performance in 2016. In the third quarter, we again achieved solid earnings growth, driven by 3.7% revenue growth and continued reductions in interest expense. Cash flow from operations continues to track positively, with operating cash flows of $186.1 million in the first nine months of the year, up 18.3% compared to the first nine months of 2015. This strong cash flow generation enabled us to reduce net leverage to a 10-year low and to continue to execute on our value creating acquisition strategy. We are confident that our execution and attractive acquisition opportunities will enable VWR to continue to create shareholder value by strengthening our service and product offerings to our customers."
For financial year 2016, VWR Corporation expects revenue to be in the range of $4.54 million to $4,630 million. The company projects diluted earnings per share to be in the range of $1.68 to $1.74 on adjusted basis.
Operating cash flow improvesVWR Corporation has generated cash of $186.10 million from operating activities during the nine month period, up 18.31 percent or $28.80 million, when compared with the last year period. The company has spent $106.30 million cash to meet investing activities during the nine month period as against cash outgo of $68.20 million in the last year period.
The company has spent $78.20 million cash to carry out financing activities during the nine month period as against cash outgo of $75.50 million in the last year period.
Cash and cash equivalents stood at $141.70 million as on Sep. 30, 2016, up 15.39 percent or $18.90 million from $122.80 million on Sep. 30, 2015.
Working capital increases
VWR Corporation has recorded an increase in the working capital over the last year. It stood at $474.90 million as at Sep. 30, 2016, up 20.02 percent or $79.20 million from $395.70 million on Sep. 30, 2015. Current ratio was at 1.56 as on Sep. 30, 2016, up from 1.48 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 25 days for the quarter from 44 days for the last year period. Days sales outstanding were almost stable at 50 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 26 days for the quarter compared with 47 days for the previous year period. At the same time, days payable outstanding went down to 51 days for the quarter from 53 for the same period last year.
Debt comes down marginallyVWR Corporation has recorded a decline in total debt over the last one year. It stood at $2,017.60 million as on Sep. 30, 2016, down 1.72 percent or $35.40 million from $2,053 million on Sep. 30, 2015. Total debt was 40.77 percent of total assets as on Sep. 30, 2016, compared with 42.31 percent on Sep. 30, 2015. Debt to equity ratio was at 1.34 as on Sep. 30, 2016, down from 1.58 as on Sep. 30, 2015. Interest coverage ratio improved to 4.04 for the quarter from 2.89 for the same period last year. 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
