Sucampo Pharmaceuticals (SCMP) has reported 50.56 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $15.28 million, or $0.34 a share in the quarter, compared with $10.15 million, or $0.23 a share for the same period last year.
Revenue during the quarter surged 31.89 percent to $73.02 million from $55.37 million in the previous year period. Gross margin for the quarter expanded 974 basis points over the previous year period to 77.10 percent. Total expenses were 54.13 percent of quarterly revenues, down from 79.11 percent for the same period last year. This has led to an improvement of 2497 basis points in operating margin to 45.87 percent.
Operating income for the quarter was $33.49 million, compared with $11.57 million in the previous year period.
"The strong financial results we achieved in the fourth quarter concluded an incredibly successful 2016 highlighted by significant growth in revenues, earnings and EBITDA and the achievement of several key corporate objectives," said Peter Greenleaf, chairman and chief executive officer of Sucampo. “We expect to maintain this momentum through 2017, with continued strong financial performance and execution on strategic transactions to further boost growth and diversify our product portfolio. Additionally, I’d like to thank Andrew for his years of service to Sucampo, and I wish him and his family all the best as he embarks on the next phase of his professional life. I’d also like to extend a warm welcome to Peter and Woody and look forward to the contributions they will make to Sucampo in these key roles."
For the fiscal year 2017, Sucampo Pharmaceuticals expects revenue to be in the range of $220 million to $230 million. Sucampo Pharmaceuticals projects adjusted net income to be in the range of $80 million to $90 million, the company projects diluted earnings per share to be in the range of $1.35 to $1.50 on adjusted basis.
Working capital increases sharplySucampo Pharmaceuticals has recorded an increase in the working capital over the last year. It stood at $274.88 million as at Dec. 31, 2016, up 68.40 percent or $111.65 million from $163.23 million on Dec. 31, 2015. Current ratio was at 9.50 as on Dec. 31, 2016, up from 2.85 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 83 days for the quarter from 94 days for the last year period. Days sales outstanding went up to 44 days for the quarter compared with 38 days for the same period last year.
Days inventory outstanding has decreased to 65 days for the quarter compared with 84 days for the previous year period. At the same time, days payable outstanding went down to 25 days for the quarter from 29 for the same period last year.
Debt moves upSucampo Pharmaceuticals has witnessed an increase in total debt over the last one year. It stood at $290.52 million as on Dec. 31, 2016, up 15.12 percent or $38.16 million from $252.36 million on Dec. 31, 2015. Total debt was 55.78 percent of total assets as on Dec. 31, 2016, compared with 55.20 percent on Dec. 31, 2015. Debt to equity ratio was at 1.74 as on Dec. 31, 2016, down from 2.92 as on Dec. 31, 2015. Interest coverage ratio improved to 5.96 for the quarter from 1.91 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: [email protected]
