Halyard Health (HYH) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $9.10 million, or $ 0.19 a share in the quarter, against a net loss of $470.50 million, or $10.10 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $22.70 million, or $0.48 a share compared with $24.40 million or $0.52 a share, a year ago.
Revenue during the quarter went up marginally by 2.05 percent to $397.50 million from $389.50 million in the previous year period. Gross margin for the quarter expanded 108 basis points over the previous year period to 34.72 percent.
Operating income for the quarter was $20.90 million, compared with an operating loss of $461.20 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $53.30 million compared with $55.70 million in the prior year period. At the same time, adjusted EBITDA margin contracted 89 basis points in the quarter to 13.41 percent from 14.30 percent in the last year period.
"We delivered another solid quarter fueled by organic growth in Medical Devices and contributions from our recent CORPAK acquisition. I am pleased with our integration progress and we have realized synergies earlier than expected. As a result, we are raising our full-year adjusted diluted earnings outlook," said Robert Abernathy, Halyard chairman and chief executive officer. "We are advancing Halyard's transformation into a leading medical devices company and our strong financial profile leaves us well-positioned for future growth."
For financial year 2016, the company forecasts diluted earnings per share to be in the range of $0.83 to $1.05. The company forecasts diluted earnings per share to be in the range of $1.87 to $1.97 on adjusted basis.
Operating cash flow improves significantlyHalyard Health has generated cash of $143.90 million from operating activities during the nine month period, up 92.90 percent or $69.30 million, when compared with the last year period. The company has spent $196.70 million cash to meet investing activities during the nine month period as against cash outgo of $56.60 million in the last year period.
Cash flow from financing activities was $9.30 million for the nine month period as against cash outgo of $50.80 million in the last year period.
Cash and cash equivalents stood at $86.70 million as on Sep. 30, 2016, down 22.93 percent or $25.80 million from $112.50 million on Sep. 30, 2015.
Working capital declines
Halyard Health has witnessed a decline in the working capital over the last year. It stood at $294.90 million as at Sep. 30, 2016, down 13.06 percent or $44.30 million from $339.20 million on Sep. 30, 2015. Current ratio was at 1.95 as on Sep. 30, 2016, down from 2.04 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 33 days for the quarter from 95 days for the last year period. Days sales outstanding went down to 45 days for the quarter compared with 48 days for the same period last year.
Days inventory outstanding has decreased to 53 days for the quarter compared with 115 days for the previous year period. At the same time, days payable outstanding went down to 65 days for the quarter from 68 for the same period last year.
Debt remains almost stableHalyard Health has witnessed an increase in total debt over the last one year. It stood at $589.40 million as on Sep. 30, 2016, up 0.60 percent or $3.50 million from $585.90 million on Sep. 30, 2015.. Total debt was 28.13 percent of total assets as on Sep. 30, 2016, compared with 29.20 percent on Sep. 30, 2015. Debt to equity ratio was at 0.54 as on Sep. 30, 2016, down from 0.56 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
