Impax Laboratories, Inc. (IPXL) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $279.58 million, or $ 3.91 a share in the quarter, against a net profit of $11.43 million, or $0.16 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $11.65 million, or $0.16 a share compared with $44.52 million or $0.62 a share, a year ago. Revenue during the quarter dropped 29.66 percent to $198.42 million from $282.09 million in the previous year period. Gross margin for the quarter stood at negative 81.27 percent as compared to a positive 40.69 percent for the previous year period.
Operating loss for the quarter was $263.91 million, compared with an operating income of $30.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $37.30 million compared with $78.42 million in the prior year period. At the same time, adjusted EBITDA margin contracted 900 basis points in the quarter to 18.80 percent from 27.80 percent in the last year period.
"During 2016, a number of our generic products faced aggressive competition and pricing pressure, which impacted our revenue and profitability. As we enter 2017, we expect these headwinds to persist and weigh on our results through the year," said Kevin Buchi, Interim president and chief executive officer of Impax. "We continue to pursue opportunities to help offset these challenges by continuing the growth of our Specialty Pharma division, growing our share within key generic product markets, bringing new generic products to market and further reducing our cost base."
Operating cash flow improves marginallyImpax Laboratories, Inc. has generated cash of $74.60 million from operating activities during the year, up 3.71 percent or $2.67 million, when compared with the last year. The company has spent $627.09 million cash to meet investing activities during the year as against cash outgo of $467.54 million in the last year.
Cash flow from financing activities was $391.78 million for the year, down 24.86 percent or $129.60 million, when compared with the last year.
Cash and cash equivalents stood at $180.13 million as on Dec. 31, 2016, down 47.07 percent or $160.22 million from $340.35 million on Dec. 31, 2015.
Working capital drops significantly
Impax Laboratories, Inc. has witnessed a decline in the working capital over the last year. It stood at $309.82 million as at Dec. 31, 2016, down 37.45 percent or $185.50 million from $495.31 million on Dec. 31, 2015. Current ratio was at 1.96 as on Dec. 31, 2016, down from 2.52 on Dec. 31, 2015.
Debt increases substantially
Impax Laboratories, Inc. has witnessed an increase in total debt over the last one year. It stood at $831.26 million as on Dec. 31, 2016, up 95.78 percent or $406.67 million from $424.60 million on Dec. 31, 2015. Short-term debt stood at $17.72 million as on Dec. 31, 2016. Total debt was 45.60 percent of total assets as on Dec. 31, 2016, compared with 22.09 percent on Dec. 31, 2015. Debt to equity ratio was at 1.33 as on Dec. 31, 2016, up from 0.40 as on Dec. 31, 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
