Chemed Corporation (CHE) has reported 20.14 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $29.84 million, or $1.78 a share in the quarter, compared with $24.84 million, or $1.45 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $30.50 million, or $1.82 a share compared with $27.75 million or $1.62 a share, a year ago.
Revenue during the quarter grew 3.96 percent to $405.86 million from $390.39 million in the previous year period. Gross margin for the quarter expanded 107 basis points over the previous year period to 29.74 percent. Total expenses were 89.79 percent of quarterly revenues, up from 88.63 percent for the same period last year. That has resulted in a contraction of 116 basis points in operating margin to 10.21 percent.
Operating income for the quarter was $41.45 million, compared with $44.39 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $59.82 million compared with $54.48 million in the prior year period. At the same time, adjusted EBITDA margin improved 78 basis points in the quarter to 14.74 percent from 13.96 percent in the last year period.
Operating cash flow improves significantlyChemed Corporation has generated cash of $68.79 million from operating activities during the quarter, up 852.32 percent or $61.56 million, when compared with the last year period. The company has spent $9.09 million cash to meet investing activities during the quarter as against cash outgo of $11.32 million in the last year period.
The company has spent $27.96 million cash to carry out financing activities during the quarter as against cash inflow of $4.60 million in the last year period.
Cash and cash equivalents stood at $47.05 million as on Mar. 31, 2017, up 208.82 percent or $31.81 million from $15.24 million on Mar. 31, 2016.
Working capital turns positive
Working capital of Chemed Corporation has turned positive to $11.59 million on Mar. 31, 2017 from negative $11.62 million on Mar. 31, 2016. Current ratio was at 1.07 as on Mar. 31, 2017, up from 0.94 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 13 days for the quarter from 16 days for the last year period. Days sales outstanding went down to 24 days for the quarter compared with 29 days for the same period last year.
Days inventory outstanding has decreased to 1 days for the quarter compared with 2 days for the previous year period. At the same time, days payable outstanding went down to 12 days for the quarter from 15 for the same period last year.
Debt moves up marginallyChemed Corporation has witnessed an increase in total debt over the last one year. It stood at $146.88 million as on Mar. 31, 2017, up 1.38 percent or $2 million from $144.88 million on Mar. 31, 2016. Total debt was 16.57 percent of total assets as on Mar. 31, 2017, compared with 16.41 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 0.29 as on Mar. 31, 2017, when compared with the 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: [email protected]
