Jazz Pharmaceuticals plc (JAZZ) has reported a 14.11 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $86.51 million, or $1.41 a share in the quarter, compared with $75.81 million, or $1.21 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $141.22 million, or $2.31 a share compared with $134.57 million or $2.15 a share, a year ago. Revenue during the quarter grew 11.92 percent to $376.05 million from $336.01 million in the previous year period. Gross margin for the quarter expanded 31 basis points over the previous year period to 93.33 percent. Total expenses were 63.80 percent of quarterly revenues, down from 63.94 percent for the same period last year. This has led to an improvement of 14 basis points in operating margin to 36.20 percent.
Operating income for the quarter was $136.14 million, compared with $121.16 million in the previous year period.
"The first part of 2017 has been an exceptionally productive period for us in R&D as we announced top-line data for our three JZP-110 Phase 3 studies and our Xyrem Phase 2/3 pediatric study, completed the Vyxeos NDA submission while preparing for potential FDA approval and launch, started additional clinical programs and advanced other key development projects," said Bruce Cozadd, chairman and chief executive officer of Jazz Pharmaceuticals. "With increased clarity around Xyrem longevity, we remain focused on delivering on our growth strategy, including preparing for the launch of additional products, such as Vyxeos, and investing in corporate development activities with the goal of further diversifying and expanding our product portfolio and offering important new therapeutic options to patients while increasing shareholder value."
For fiscal year 2017, Jazz Pharmaceuticals plc forecasts revenue to be in the range of $1,625 million to $1,700 million. The company projects net income to be in the range of $400 million to $460 million and expects adjusted net income to be in the range of $650 million to $690 million. It company expects diluted earnings per share to be in the range of $6.55 to $7.55 and expects diluted earnings per share to be in the range of $10.70 to $11.30 on adjusted basis.
Operating cash flow improves
Jazz Pharmaceuticals plc has generated cash of $164.54 million from operating activities during the quarter, up 8.50 percent or $12.89 million, when compared with the last year period. The company has spent $3.57 million cash to meet investing activities during the quarter as against cash outgo of $12 million in the last year period.
The company has spent $181.67 million cash to carry out financing activities during the quarter as against cash outgo of $152.46 million in the last year period.
Cash and cash equivalents stood at $347 million as on Mar. 31, 2017, down 64.58 percent or $632.78 million from $979.78 million on Mar. 31, 2016.
Working capital drops significantly
Jazz Pharmaceuticals plc has witnessed a decline in the working capital over the last year. It stood at $360.08 million as at Mar. 31, 2017, down 58.70 percent or $511.71 million from $871.79 million on Mar. 31, 2016. Current ratio was at 1.92 as on Mar. 31, 2017, down from 3.19 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 30 days for the quarter from 40 days for the last year period. Days sales outstanding went down to 54 days for the quarter compared with 59 days for the same period last year.
Days inventory outstanding has decreased to 68 days for the quarter compared with 87 days for the previous year period. At the same time, days payable outstanding went down to 91 days for the quarter from 106 for the same period last year.
Debt increases substantially
Jazz Pharmaceuticals plc has witnessed an increase in total debt over the last one year. It stood at $1,875.69 million as on Mar. 31, 2017, up 58.42 percent or $691.66 million from $1,184.02 million on Mar. 31, 2016. Total debt was 38.95 percent of total assets as on Mar. 31, 2017, compared with 33.49 percent on Mar. 31, 2016. Debt to equity ratio was at 0.95 as on Mar. 31, 2017, up from 0.74 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 7.22 for the quarter from 9.94 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: [email protected]
