Owens & Minor, Inc (OMI) has reported a 5.87 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $29.83 million, or $0.48 a share in the quarter, compared with $28.18 million, or $0.45 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $31.56 million, or $0.51 a share compared with $33.56 million or $0.54 a share, a year ago. Revenue during the quarter went down marginally by 2.27 percent to $2,415.60 million from $2,471.67 million in the previous year period. Gross margin for the quarter contracted 13 basis points over the previous year period to 12.27 percent. Total expenses were 97.78 percent of quarterly revenues, down from 97.83 percent for the same period last year. This has led to an improvement of 5 basis points in operating margin to 2.22 percent.
Operating income for the quarter was $53.57 million, compared with $53.57 million in the previous year period.
However, the adjusted operating income for the quarter stood at $56.31 million compared to $59.71 million in the prior year period. At the same time, adjusted operating margin contracted 8 basis points in the quarter to 2.33 percent from 2.42 percent in the last year period.
"I’m pleased with our execution focus. Our teams achieved solid results for the quarter and successfully managed through the exit of a large customer," said P. Cody Phipps, president & chief executive officer of Owens & Minor. "We have made steady progress in managing costs and improving productivity, while we begin to execute our strategic plan for the future. The healthcare industry continues to evolve, and we are taking steps to reposition Owens & Minor for success in a changing environment."
For fiscal year 2016, Owens & Minor, Inc expects diluted earnings per share to be in the range of $2 to $2.05 on adjusted basis.
Operating cash flow drops significantly
Owens & Minor, Inc has generated cash of $143.83 million from operating activities during the nine month period, down 30.19 percent or $62.21 million, when compared with the last year period. The company has spent $16.27 million cash to meet investing activities during the nine month period as against cash outgo of $32.08 million in the last year period. It has incurred net capital expenditure of $16.27 million on net basis during the nine month period, down 49.29 percent or $15.81 million from year ago period.
The company has spent $82.14 million cash to carry out financing activities during the nine month period as against cash outgo of $103.08 million in the last year period.
Cash and cash equivalents stood at $213.10 million as on Sep. 30, 2016, up 70.14 percent or $87.85 million from $125.24 million on Sep. 30, 2015.
Working capital increases
Owens & Minor, Inc has recorded an increase in the working capital over the last year. It stood at $926.95 million as at Sep. 30, 2016, up 7.69 percent or $66.20 million from $860.75 million on Sep. 30, 2015. Current ratio was at 1.85 as on Sep. 30, 2016, up from 1.81 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 10 days for the quarter from 30 days for the last year period. Days sales outstanding were almost stable at 22 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 21 days for the quarter compared with 38 days for the previous year period. At the same time, days payable outstanding went up to 33 days for the quarter from 31 for the same period last year.
Debt comes down marginally
Owens & Minor, Inc has recorded a decline in total debt over the last one year. It stood at $566.47 million as on Sep. 30, 2016, down 1.32 percent or $7.56 million from $574.03 million on Sep. 30, 2015. Owens & Minor has recorded a decline in long-term debt over the last one year. It stood at $566.47 million as on Sep. 30, 2016, down 1.32 percent or $7.56 million from $574.03 million on Sep. 30, 2015. Total debt was 20.27 percent of total assets as on Sep. 30, 2016, compared with 20.86 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.57 as on Sep. 30, 2016, when compared with the last year. Interest coverage ratio deteriorated to 7.91 for the quarter from 7.94 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: editor@irisindia.net
