Albany Molecular Research (AMRI) saw its loss widen to $10.69 million, or $0.25 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $10.07 million, or $0.29 a share. On the other hand, adjusted net income for the quarter stood at $5.74 million, or $0.13 a share compared with $2.37 million or $0.07 a share, a year ago. Revenue during the quarter surged 55.17 percent to $163.82 million from $105.58 million in the previous year period. Gross margin for the quarter expanded 22 basis points over the previous year period to 25.05 percent. Operating margin for the quarter period stood at positive 1.27 percent as compared to a negative 3.93 percent for the previous year period.
Operating income for the quarter was $2.08 million, compared with an operating loss of $4.15 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $23.95 million compared with $13.08 million in the prior year period. At the same time, adjusted EBITDA margin improved 223 basis points in the quarter to 14.62 percent from 12.39 percent in the last year period.
"We delivered an excellent first quarter, driven by 56 percent growth in contract revenue, 7 percent on an organic basis, including double digit organic growth in our Discovery, Development and Analytical Services (DDS) and Active Pharmaceutical Ingredient (API) businesses," said William S. Marth, AMRIs president and chief executive officer. "GAAP income from operations increased $6 million, a 150% increase quarter over quarter, and adjusted EBITDA increased $11 million, an 83% increase quarter over quarter, illustrating strong and efficient execution and leverage across our operations. We are confident that these trends will continue through the year and are maintaining our outlook for 2017, which includes 28% growth of contract revenue, 7% growth of organic contract revenue, and double digit earnings growth at the midpoint."
Albany Molecular Research expects revenue to be in the range of $710 million to $740 million for financial year 2017. For fiscal year 2017, Albany Molecular Research forecasts net loss to be in the range of $12 million to $7 million. For the fiscal year 2017, Albany Molecular Research projects adjusted net income to be in the range of $47 million to $52 million. For financial year 2017, the company projects diluted loss per share to be in the range of $0.28 to $0.16. For financial year 2017, the company projects diluted earnings per share to be in the range of $1.08 to $1.20 on adjusted basis.
Working capital increases sharplyAlbany Molecular Research has recorded an increase in the working capital over the last year. It stood at $218.14 million as at Mar. 31, 2017, up 26.52 percent or $45.72 million from $172.41 million on Mar. 31, 2016. Current ratio was at 2.31 as on Mar. 31, 2017, down from 2.70 on Mar. 31, 2016. Days sales outstanding went down to 73 days for the quarter compared with 100 days for the same period last year.
Days inventory outstanding has decreased to 64 days for the quarter compared with 105 days for the previous year period.
Debt increases substantially
Albany Molecular Research has witnessed an increase in total debt over the last one year. It stood at $607.25 million as on Mar. 31, 2017, up 56.68 percent or $219.68 million from $387.57 million on Mar. 31, 2016. Total debt was 52.19 percent of total assets as on Mar. 31, 2017, compared with 46.46 percent on Mar. 31, 2016. Debt to equity ratio was at 2.05 as on Mar. 31, 2017, up from 1.35 as on Mar. 31, 2016. 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
