Icu Medical (ICUI) has reported 74.12 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $9.51 million, or $0.54 a share in the quarter, compared with $5.46 million, or $0.33 a share for the same period last year. On an adjusted basis, earnings per share were at $1.20 for the quarter compared with $0.96 in the same period last year.
Revenue during the quarter grew 5.86 percent to $95.69 million from $90.39 million in the previous year period. Gross margin for the quarter contracted 34 basis points over the previous year period to 53.05 percent. Total expenses were 85.61 percent of quarterly revenues, down from 86.17 percent for the same period last year. This has led to an improvement of 56 basis points in operating margin to 14.39 percent.
Operating income for the quarter was $13.77 million, compared with $12.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $34.30 million compared with $30.15 million in the prior year period. At the same time, adjusted EBITDA margin improved 249 basis points in the quarter to 35.85 percent from 33.36 percent in the last year period.
Vivek Jain, ICU Medical's chief executive officer, said, "We are pleased with our revenue, adjusted EBITDA, and adjusted earnings per share results in the fourth quarter. Our growth was driven by continued strength in our Direct Channels for infusion therapy and oncology market segments."
For fiscal year 2017, Icu Medical forecasts net income to be in the range of $59 million to $66 million. The company projects diluted earnings per share to be in the range of $2.89 to $3.24. It projects diluted earnings per share to be in the range of $3.55 to $3.90 on adjusted basis.
Operating cash flow improves significantlyIcu Medical has generated cash of $89.94 million from operating activities during the year, up 40.11 percent or $25.75 million, when compared with the last year. Cash flow from investing activities was $16.28 million from investing activities during the year as against cash outgo of $11.24 million in the last year.
Cash flow from financing activities was $2.47 million for the year, down 84.24 percent or $13.21 million, when compared with the last year.
Cash and cash equivalents stood at $445.08 million as on Dec. 31, 2016, up 32.40 percent or $108.92 million from $336.16 million on Dec. 31, 2015.
Working capital increases
Icu Medical has recorded an increase in the working capital over the last year. It stood at $528.56 million as at Dec. 31, 2016, up 14.31 percent or $66.17 million from $462.39 million on Dec. 31, 2015. Current ratio was at 14.04 as on Dec. 31, 2016, up from 11.85 on Dec. 31, 2015.
Cash conversion cycle (CCC) was almost stable at 62 days for the quarter, when compared with the last year period. Days sales outstanding went down to 27 days for the quarter compared with 29 days for the same period last year.
Days inventory outstanding has increased to 50 days for the quarter compared with 48 days for the previous year period. At the same time, days payable outstanding was almost stable at 15 days for the quarter, when compared with the previous year period.
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