Cambrex Corporation (CBM) has reported 109.86 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $37.38 million, or $1.13 a share in the quarter, compared with $17.81 million, or $0.54 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $40.78 million, or $1.23 a share compared with $33.02 million or $1.01 a share, a year ago. Revenue during the quarter grew 13.88 percent to $177.87 million from $156.19 million in the previous year period. Gross margin for the quarter expanded 209 basis points over the previous year period to 44.51 percent. Total expenses were 68.13 percent of quarterly revenues, down from 80.07 percent for the same period last year. This has led to an improvement of 1194 basis points in operating margin to 31.87 percent.
Operating income for the quarter was $56.69 million, compared with $31.13 million in the previous year period.
However, the adjusted operating income for the quarter stood at $57.45 million compared to $46.70 million in the prior year period. At the same time, adjusted operating margin improved 240 basis points in the quarter to 32.30 percent from 29.90 percent in the last year period.
“We had a great finish to 2016, our sixth straight year of strong growth. During the year, we invested significant capital into our existing sites, brought a new large scale facility on line at our Charles City, Iowa site, and completed the acquisition of PharmaCore, now Cambrex High Point,” commented Steven M. Klosk, President and Chief Executive Officer of Cambrex.
Cambrex Corporation projects adjusted revenue to grow in the range of 7 percent to 11 percent for for financial year 2017. For financial year 2017, the company forecasts 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 $227.19 million as at Dec. 31, 2016, up 75.47 percent or $97.72 million from $129.48 million on Dec. 31, 2015. Current ratio was at 3.38 as on Dec. 31, 2016, up from 2 on Dec. 31, 2015. Cash conversion cycle (CCC) has increased to 68 days for the quarter from 65 days for the last year period. Days sales outstanding went up to 30 days for the quarter compared with 29 days for the same period last year.
Days inventory outstanding has increased to 57 days for the quarter compared with 56 days for the previous year period. At the same time, days payable outstanding was almost stable at 20 days for the quarter, when compared with the previous year period.
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