Avadel Pharmaceuticals plc (AVDL) has reported a 93.56 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $4.73 million, or $0.11 a share in the quarter, compared with $73.52 million, or $1.69 a share for the same period last year. On an adjusted basis, net profit for the quarter was $0.07 million, when compared with $10.76 million in the last year period. Revenue during the quarter dropped 3.33 percent to $43.08 million from $44.57 million in the previous year period. Gross margin for the quarter expanded 58 basis points over the previous year period to 93.99 percent. Total expenses were 60.39 percent of quarterly revenues, up from 74.12 percent for the same period last year.
Operating income for the quarter was $17.06 million, compared with $77.60 million in the previous year period.
However, the adjusted operating income for the quarter stood at $7.67 million compared to $21.50 million in the prior year period. At the same time, adjusted operating margin contracted 3046 basis points in the quarter to 17.79 percent from 48.25 percent in the last year period.
Michael Anderson, Avadel's chief executive officer, remarked, "We hit a number of milestones during 2016, including the approval and successful launch of our third hospital product, Akovaz, and in particular during the fourth quarter, we reached an agreement with the FDA on our special protocol assessment for our REST-ON Phase III clinical trial, began enrollment and dosing of patients, and ended the year by redomiciling from France to Ireland and changing our company name in the process. Although it is still early in the enrollment process, REST-ON remains on track, and the successful completion of our trial continues to be a primary objective in 2017."
For financial year 2017, Avadel Pharmaceuticals plc projects revenue to be in the range of $170 million to $200 million. It forecasts diluted earnings per share to be in the range of $0.20 to $0.35 on adjusted basis for the same period.
Operating cash flow drops significantly
Avadel Pharmaceuticals plc has generated cash of $18.90 million from operating activities during the year, down 77.58 percent or $65.39 million, when compared with the last year. The company has spent $36.63 million cash to meet investing activities during the year as against cash outgo of $31.73 million in the last year.
The company has spent $7.95 million cash to carry out financing activities during the year as against cash outgo of $23.75 million in the last year period.
Cash and cash equivalents stood at $39.22 million as on Dec. 31, 2016, down 39.73 percent or $25.85 million from $65.06 million on Dec. 31, 2015.
Debt comes down significantly
Avadel Pharmaceuticals plc has recorded a decline in total debt over the last one year. It stood at $0.82 million as on Dec. 31, 2016, down 27.10 percent or $0.30 million from $1.12 million on Dec. 31, 2015.
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