Catalent, Inc. (CTLT) has reported a 61.34 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $4.60 million, or $0.04 a share in the quarter, compared with $11.90 million, or $0.09 a share for the same period last year. On an adjusted basis, net profit for the quarter was $19.60 million, when compared with $23 million in the last year period.
Revenue during the quarter grew 4.54 percent to $442.20 million from $423 million in the previous year period. Gross margin for the quarter contracted 66 basis points over the previous year period to 28.06 percent. Total expenses were 94.39 percent of quarterly revenues, up from 91.25 percent for the same period last year. That has resulted in a contraction of 314 basis points in operating margin to 5.61 percent.
Operating income for the quarter was $24.80 million, compared with $37 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $75 million compared with $77.60 million in the prior year period. At the same time, adjusted EBITDA margin contracted 138 basis points in the quarter to 16.96 percent from 18.35 percent in the last year period.
"We're pleased to start fiscal year 2017 with strong revenue growth, the completion of a strategic acquisition, and several exciting developments on the Biologics front," said John Chiminski, president and chief executive officer of Catalent, Inc. "The acquisition of Pharmatek adds extensive early-phase drug development capabilities from discovery to clinic and brings spray drying technology into Catalent's extensive portfolio of advanced delivery technologies. The Biologics project wins this quarter highlight our differentiated technology platforms in this space in support of our customers and patients."
For the fiscal year 2017, Catalent, Inc. projects revenue to be in the range of $1,920 million to $1,995 million. The Company forecasts adjusted net income to be in the range of $165 million to $190 million.
Operating cash flow improves
Catalent, Inc. has generated cash of $48.30 million from operating activities during the quarter, up 7.57 percent or $3.40 million, when compared with the last year period. The company has spent $114.60 million cash to meet investing activities during the quarter as against cash outgo of $33.20 million in the last year period.
Cash flow from financing activities was $65.90 million for the quarter as against cash outgo of $10.30 million in the last year period.
Cash and cash equivalents stood at $132.10 million as on Sep. 30, 2016, down 12.75 percent or $19.30 million from $151.40 million on Sep. 30, 2015.
Debt moves up marginally
Catalent, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,937.30 million as on Sep. 30, 2016, up 2.83 percent or $53.40 million from $1,883.90 million on Sep. 30, 2015. Total debt was 61.93 percent of total assets as on Sep. 30, 2016, compared with 61.64 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 3.15 as on Sep. 30, 2016, when compared with the last year. Interest coverage ratio deteriorated to 1.12 for the quarter from 1.63 for the same period last year.
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