Electromed, Inc. (ELMD) has reported 38.86 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $0.65 million, or $0.08 a share in the quarter, compared with $0.47 million, or $0.06 a share for the same period last year.
Revenue during the quarter grew 10.50 percent to $6.67 million from $6.04 million in the previous year period. Gross margin for the quarter expanded 299 basis points over the previous year period to 79.65 percent. Total expenses were 84.46 percent of quarterly revenues, down from 87.81 percent for the same period last year. This has led to an improvement of 336 basis points in operating margin to 15.54 percent.
Operating income for the quarter was $1.04 million, compared with $0.74 million in the previous year period.
Kathleen Skarvan, president and chief executive officer of Electromed, commented, "In our fiscal third quarter we reported strengthening revenue and net income growth, driven by a 13.5% year-over-year increase in home care sales, reflecting solid performance by our sales and reimbursement teams. We are pleased with our team’s progress as well as the ongoing execution of our growth strategies."
Operating cash flow drops significantly
Electromed, Inc. has generated cash of $0.81 million from operating activities during the nine month period, down 51.75 percent or $0.86 million, when compared with the last year period.
The company has spent $0.49 million cash to meet investing activities during the nine month period as against cash outgo of $0.28 million in the last year period.
The company has spent $0.04 million cash to carry out financing activities during the nine month period as against cash outgo of $0.05 million in the last year period.
Cash and cash equivalents stood at $5.40 million as on Mar. 31, 2017, up 9.48 percent or $0.47 million from $4.93 million on Mar. 31, 2016.
Working capital increases
Electromed, Inc. has recorded an increase in the working capital over the last year. It stood at $14.64 million as at Mar. 31, 2017, up 18.98 percent or $2.34 million from $12.31 million on Mar. 31, 2016. Current ratio was at 6.28 as on Mar. 31, 2017, up from 5.26 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 126 days for the quarter from 110 days for the last year period. Days sales outstanding went up to 60 days for the quarter compared with 56 days for the same period last year.
Days inventory outstanding has increased to 86 days for the quarter compared with 75 days for the previous year period. At the same time, days payable outstanding went down to 20 days for the quarter from 22 for the same period last year.
Debt comes down marginally
Electromed, Inc. has recorded a decline in total debt over the last one year. It stood at $1.16 million as on Mar. 31, 2017, down 4.58 percent or $0.06 million from $1.21 million on Mar. 31, 2016. Total debt was 5.29 percent of total assets as on Mar. 31, 2017, compared with 6.07 percent on Mar. 31, 2016. Debt to equity ratio was at 0.06 as on Mar. 31, 2017, down from 0.08 as on Mar. 31, 2016. Interest coverage ratio improved to 117.40 for the quarter from 56.31 for the same period last year.
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