Icu Medical (ICUI) has reported 15.62 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $18.81 million, or $1.09 a share in the quarter, compared with $16.27 million, or $0.98 a share for the same period last year. On an adjusted basis, earnings per share were at $1.35 for the quarter compared with $1 in the same period last year.

Revenue during the quarter grew 12.90 percent to $97.11 million from $86.02 million in the previous year period. Gross margin for the quarter contracted 99 basis points over the previous year period to 52.80 percent. Total expenses were 76.88 percent of quarterly revenues, up from 71.21 percent for the same period last year. That has resulted in a contraction of 567 basis points in operating margin to 23.12 percent.

Operating income for the quarter was $22.46 million, compared with $24.77 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $33.98 million compared with $29.66 million in the prior year period. At the same time, adjusted EBITDA margin improved 51 basis points in the quarter to 34.99 percent from 34.48 percent in the last year period.  

Vivek Jain, ICU Medical's chief executive officer, said, "We are pleased with our revenue, adjusted EBITDA and net income results in the third quarter driven by strong performance in our Direct channel. Our recently announced definitive agreement to acquire the Hospira infusion systems business is progressing as anticipated and we continue to expect to close in the first quarter of 2017."

For financial year 2016, Icu Medical projects net income to be in the range of $69 million to $70 million. The company expects diluted earnings per share to be in the range of $3.96 to $4.06. The company expects diluted earnings per share to be in the range of $4.80 to $4.90 on adjusted basis.

The company has spent $84.61 million cash to meet investing activities during the nine month period as against cash inflow of $25.16 million in the last year period It has incurred net capital expenditure of $15.88 million on net basis during the nine month period, up 223.05 percent or $10.96 million from year ago period.

Cash flow from financing activities was $1.04 million for the nine month period, down 91.08 percent or $10.58 million, when compared with the last year period.

Cash and cash equivalents stood at $322.96 million as on Sep. 30, 2016, down 9.12 percent or $32.40 million from $355.37 million on Sep. 30, 2015.

Working capital decreases marginally
Icu Medical has witnessed a decline in the working capital over the last year. It stood at $470.53 million as at Sep. 30, 2016, down 1.25 percent or $5.96 million from $476.49 million on Sep. 30, 2015. Current ratio was at 15.47 as on Sep. 30, 2016, up from 13.81 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 72 days for the quarter from 109 days for the last year period. Days sales outstanding went down to 46 days for the quarter compared with 50 days for the same period last year.

Days inventory outstanding has decreased to 51 days for the quarter compared with 91 days for the previous year period. At the same time, days payable outstanding went down to 25 days for the quarter from 32 for the same period last year.