Cambrex Corporation (CBM) has reported a 36.23 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $19.86 million, or $0.60 a share in the quarter, compared with $14.58 million, or $0.44 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $22.67 million, or $0.68 a share compared with $16.31 million or $0.50 a share, a year ago. Revenue during the quarter grew 10.83 percent to $105.01 million from $94.74 million in the previous year period. Gross margin for the quarter expanded 353 basis points over the previous year period to 44.59 percent. Total expenses were 74.11 percent of quarterly revenues, down from 77.44 percent for the same period last year. This has led to an improvement of 332 basis points in operating margin to 25.89 percent.
Operating income for the quarter was $27.18 million, compared with $21.38 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $34.37 million compared with $27.24 million in the prior year period. At the same time, adjusted EBITDA margin improved 397 basis points in the quarter to 32.73 percent from 28.76 percent in the last year period.
“We had a positive start to 2017 with increased demand in the generics and controlled substances categories and we continued to execute well, delivering strong margins in the quarter. Demand remains robust across all categories and we continue to have a high level of visibility into the full year, which gives us confidence in our guidance,” commented Steven M. Klosk, president and chief executive officer of Cambrex.
Cambrex Corp expects adjusted revenue to grow in the range of 7 percent to 11 percent for for financial year 2017. For financial year 2017, the company projects diluted earnings per share to be in the range of $2.94 to $3.06 on adjusted basis.
Working capital increases sharply
Cambrex Corporation has recorded an increase in the working capital over the last year. It stood at $247.87 million as at Mar. 31, 2017, up 38.27 percent or $68.60 million from $179.27 million on Mar. 31, 2016. Current ratio was at 3.92 as on Mar. 31, 2017, up from 2.72 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 132 days for the quarter from 207 days for the last year period. Days sales outstanding were almost stable at 75 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 117 days for the quarter compared with 197 days for the previous year period. At the same time, days payable outstanding went down to 60 days for the quarter from 64 for the same period last year.
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