IMPAX LABORATORIES INC (IPXL) saw its loss widen to $98.43 million, or $1.37 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $10.41 million, or $0.15 a share. On the other hand, adjusted net income for the quarter stood at $7.73 million, or $0.11 a share compared with $30.85 million or $0.43 a share, a year ago.
Revenue during the quarter dropped 18.23 percent to $184.40 million from $225.51 million in the previous year period. Gross margin for the quarter contracted 3199 basis points over the previous year period to 13.50 percent. Operating margin for the quarter stood at negative 28.09 percent as compared to a positive 16.83 percent for the previous year period.
Operating loss for the quarter was $51.80 million, compared with an operating income of $37.95 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $31.90 million compared with $63.56 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1088 basis points in the quarter to 17.30 percent from 28.18 percent in the last year period.
"While our first quarter results reflect a challenging macro environment, Impax continues to have a number of strong performing products and R&D opportunities within our portfolio," said Paul Bisaro, president and chief executive officer of Impax. "Since I joined the Company in March, we have carefully evaluated how best to improve profitability and capitalize on Impax’s growth opportunities in both our generics and our specialty businesses. As a result of this work, we have made the decision to consolidate Impax’s Generic R&D, manufacturing and packaging operations in Hayward, which will allow us to achieve operating efficiencies, improve manufacturing utilization, reduce costs and facilitate sharing of best practices."
Operating cash flow drops significantlyIMPAX LABORATORIES has generated cash of $39.80 million from operating activities during the quarter, down 49.55 percent or $ 39.10 million, when compared with the last year period. The company has spent $8.15 million cash to meet investing activities during the quarter as against cash outgo of $14.38 million in the last year period.
The company has spent $56.10 million cash to carry out financing activities during the quarter as against cash inflow of $6.66 million in the last year period.
Cash and cash equivalents stood at $157.25 million as on Mar. 31, 2017, down 61.85 percent or $254.93 million from $412.18 million on Mar. 31, 2016.
Working capital drops significantly
IMPAX LABORATORIES has witnessed a decline in the working capital over the last year. It stood at $252.48 million as at Mar. 31, 2017, down 47.38 percent or $227.34 million from $479.83 million on Mar. 31, 2016. Current ratio was at 1.74 as on Mar. 31, 2017, down from 2.59 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 85 days for the quarter from 165 days for the last year period. Days sales outstanding went up to 131 days for the quarter compared with 109 days for the same period last year.
Days inventory outstanding has decreased to 55 days for the quarter compared with 96 days for the previous year period. At the same time, days payable outstanding went up to 102 days for the quarter from 40 for the same period last year.
Debt increases substantiallyIMPAX LABORATORIES has witnessed an increase in total debt over the last one year. It stood at $782.91 million as on Mar. 31, 2017, up 82.12 percent or $353.04 million from $429.88 million on Mar. 31, 2016. Short-term debt stood at $17.81 million as on Mar. 31, 2017. Total debt was 46.16 percent of total assets as on Mar. 31, 2017, compared with 22.79 percent on Mar. 31, 2016. Debt to equity ratio was at 1.45 as on Mar. 31, 2017, up from 0.40 as on Mar. 31, 2016. 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: [email protected]
