Cumberland Pharmaceuticals Inc. (CPIX) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.75 million, or $ 0.05 a share in the quarter, against a net profit of $0.15 million, or $0.01 a share in the last year period.
Revenue during the quarter grew 12.99 percent to $9.08 million from $8.04 million in the previous year period. Gross margin for the quarter expanded 209 basis points over the previous year period to 82.32 percent. Operating margin for the quarter stood at negative 10.54 percent as compared to a positive 2.02 percent for the previous year period.
Operating loss for the quarter was $0.96 million, compared with an operating income of $0.16 million in the previous year period.
"We had an extremely productive 2016 with meaningful progress on our key growth objectives." said A.J. Kazimi, chief executive officer of Cumberland Pharmaceuticals." We took steps to maximize the potential of our marketed brands, entered into a series of new product agreements and advanced our clinical pipeline In the second half of 2016 we began to see our growth initiatives take hold. We enter 2017 with a great deal of confidence which is reflected in the favorable outlook for revenue growth during for the year."
Operating cash flow drops significantly
Cumberland Pharmaceuticals Inc. has generated cash of $0.57 million from operating activities during the year, down 90.31 percent or $5.31 million, when compared with the last year.
The company has spent $3.12 million cash to meet investing activities during the year as against cash outgo of $2.34 million in the last year.
The company has spent $1.15 million cash to carry out financing activities during the year as against cash outgo of $5.19 million in the last year period.
Cash and cash equivalents stood at $34.51 million as on Dec. 31, 2016, down 9.67 percent or $3.69 million from $38.20 million on Dec. 31, 2015.
Debt increases substantially
Cumberland Pharmaceuticals Inc. has witnessed an increase in total debt over the last one year. It stood at $4.10 million as on Dec. 31, 2016, up 141.18 percent or $2.40 million from $1.70 million on Dec. 31, 2015. Total debt was 4.39 percent of total assets as on Dec. 31, 2016, compared with 1.85 percent on Dec. 31, 2015. Debt to equity ratio was at 0.06 as on Dec. 31, 2016, up from 0.02 as on Dec. 31, 2015.
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