Orthofix International N V (OFIX) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $3.24 million, or $ 0.18 a share in the quarter, against a net profit of $3.37 million, or $0.18 a share in the last year period. On the other hand, adjusted net income from continuing operations for the quarter stood at $7.66 million, or $0.42 a share compared with $7.59 million or $0.40 a share, a year ago.
Revenue during the quarter grew 3.74 percent to $108.54 million from $104.62 million in the previous year period. Gross margin for the quarter contracted 102 basis points over the previous year period to 78.51 percent. Total expenses were 93.17 percent of quarterly revenues, up from 92.95 percent for the same period last year. That has resulted in a contraction of 22 basis points in operating margin to 6.83 percent.
Operating income for the quarter was $7.42 million, compared with $7.38 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $21.09 million compared with $19.27 million in the prior year period. At the same time, adjusted EBITDA margin improved 101 basis points in the quarter to 19.43 percent from 18.42 percent in the last year period.
"We are very proud of what we accomplished in 2016 and are encouraged by our momentum at year-end," commented Brad Mason, President and Chief Executive Officer. "We improved our performance during the year in almost every aspect of our business and exited an era of heavy investment with a rebuilt infrastructure, robust compliance program, rigorous financial controls, strong balance sheet, excellent free cash flow and great momentum in our BioStim and Extremity Fixation businesses. Looking ahead to the next chapter for Orthofix, we are now well positioned and committed to execute on both organic and inorganic strategic opportunities focused on accelerating shareholder value creation."
For fiscal year 2017, Orthofix International N V projects revenue to be in the range of $407 million to $411 million. It expects net income from continuing operations to be in the range of $24.40 million to $29.30 million. The company forecasts diluted earnings per share to be in the range of $1.33 to $1.59 and forecasts diluted earnings per share to be in the range of $1.48 to $1.58 on adjusted basis.
Working capital declines
Orthofix International N V has witnessed a decline in the working capital over the last year. It stood at $110.93 million as at Dec. 31, 2016, down 14.84 percent or $19.33 million from $130.26 million on Dec. 31, 2015. Current ratio was at 2.33 as on Dec. 31, 2016, down from 2.59 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 121 days for the quarter from 115 days for the last year period. Days sales outstanding went down to 25 days for the quarter compared with 26 days for the same period last year.
Days inventory outstanding has increased to 125 days for the quarter compared with 124 days for the previous year period. At the same time, days payable outstanding went down to 28 days for the quarter from 35 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
