Idexx Laboratories (IDXX) has reported 27.66 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $56.46 million, or $0.62 a share in the quarter, compared with $44.22 million, or $0.48 a share for the same period last year.
Revenue during the quarter grew 10.32 percent to $448.31 million from $406.39 million in the previous year period. Gross margin for the quarter contracted 15 basis points over the previous year period to 55.04 percent. Total expenses were 80.27 percent of quarterly revenues, down from 82.31 percent for the same period last year. This has led to an improvement of 204 basis points in operating margin to 19.73 percent.
Operating income for the quarter was $88.46 million, compared with $71.90 million in the previous year period.
"With sustained strength in our global markets, our third quarter results reflect the power of our durable, recurring revenue business model. Momentum continues to build in our commercial organization, as customers accelerate their adoption of our latest stream of innovations based on sound clinical evidence and the beneficial impact on their practices' economics," said Jonathan Ayers, the Company's chairman and chief executive officer. "We believe the sustained strong growth in companion animal health care, including the increasing use of diagnostics, is supported by the deeply-rooted, global trend of the strengthening bond between humans and their pets.
For financial year 2016, Idexx Laboratories projects revenue to be in the range of $1,763 million to $1,773 million. The company forecasts diluted earnings per share to be in the range of $2.35 to $2.39.
Operating cash flow improves significantlyIdexx Laboratories has generated cash of $234.46 million from operating activities during the nine month period, up 64.57 percent or $91.99 million, when compared with the last year period. The company has spent $76.51 million cash to meet investing activities during the nine month period as against cash outgo of $282.39 million in the last year period.
The company has spent $141.21 million cash to carry out financing activities during the nine month period as against cash outgo of $36.39 million in the last year period.
Cash and cash equivalents stood at $150.07 million as on Sep. 30, 2016, up 6.32 percent or $8.92 million from $141.15 million on Sep. 30, 2015.
Working capital increases sharply
Idexx Laboratories has recorded an increase in the working capital over the last year. It stood at $67.89 million as at Sep. 30, 2016, up 686.70 percent or $59.26 million from $8.63 million on Sep. 30, 2015. Current ratio was at 1.09 as on Sep. 30, 2016, up from 1.01 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 57 days for the quarter from 111 days for the last year period. Days sales outstanding went down to 41 days for the quarter compared with 44 days for the same period last year.
Days inventory outstanding has decreased to 38 days for the quarter compared with 95 days for the previous year period. At the same time, days payable outstanding went down to 23 days for the quarter from 28 for the same period last year.
Debt increases substantiallyIdexx Laboratories has witnessed an increase in total debt over the last one year. It stood at $1,087.14 million as on Sep. 30, 2016, up 521.22 percent or $912.14 million from $175 million on Sep. 30, 2015. Total debt was 72.46 percent of total assets as on Sep. 30, 2016, compared with 11.85 percent on Sep. 30, 2015. Interest coverage ratio improved to 12.76 for the quarter from 10.17 for the same period last year. 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
