STERIS plc (STE) has reported a 54.72 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $26.14 million, or $0.31 a share in the quarter, compared with $57.74 million, or $0.67 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $94.65 million, or $1.11 a share compared with $77.88 million or $0.90 a share, a year ago. Revenue during the quarter went down marginally by 1.32 percent to $681.19 million from $690.28 million in the previous year period. Gross margin for the quarter expanded 289 basis points over the previous year period to 41.12 percent. Total expenses were 91.39 percent of quarterly revenues, up from 85.61 percent for the same period last year. That has resulted in a contraction of 578 basis points in operating margin to 8.61 percent.
Operating income for the quarter was $58.63 million, compared with $99.33 million in the previous year period.
However, the adjusted operating income for the quarter stood at $138.21 million compared to $129.71 million in the prior year period. At the same time, adjusted operating margin improved 150 basis points in the quarter to 20.29 percent from 18.79 percent in the last year period.
“We are pleased to end this fiscal year on a high note,” said Walt Rosebrough, president and chief executive officer of STERIS. “We expect solid results in fiscal 2018, as our strategic initiatives continue to drive improvement in both gross margins and operating margins, as well as strong cash generation. For fiscal 2018, constant currency organic revenue growth is anticipated to be in the range of 4-5%, and we look forward to our sixth consecutive year of record adjusted earnings.”
Steris expects revenue to grow in the range of 2 percent to 3 percent for the financial year 2018. For financial year 2018, the company projects diluted earnings per share to be in the range of $3.25 to $3.38. For financial year 2018, the company projects diluted earnings per share to be in the range of $3.96 to $4.09 on adjusted basis.
Operating cash flow improves significantly
STERIS plc has generated cash of $424.09 million from operating activities during the year, up 66.52 percent or $169.41 million, when compared with the last year. The company has spent $104.26 million cash to meet investing activities during the year as against cash outgo of $729.58 million in the last year. It has incurred net capital expenditure of $168.06 million on net basis during the year, up 33.84 percent or $42.49 million from year ago.
The company has spent $267.10 million cash to carry out financing activities during the year as against cash inflow of $560.29 million in the last year period.
Cash and cash equivalents stood at $282.92 million as on Mar. 31, 2017, up 13.69 percent or $34.08 million from $248.84 million on Mar. 31, 2016.
Working capital increases
STERIS plc has recorded an increase in the working capital over the last year. It stood at $636.22 million as at Mar. 31, 2017, up 11.24 percent or $64.30 million from $571.92 million on Mar. 31, 2016. Current ratio was at 2.67 as on Mar. 31, 2017, up from 2.43 on Mar. 31, 2016.
Debt comes down
STERIS plc has recorded a decline in total debt over the last one year. It stood at $1,478.36 million as on Mar. 31, 2017, down 5.70 percent or $89.43 million from $1,567.80 million on Mar. 31, 2016. Steris has recorded a decline in long-term debt over the last one year. It stood at $1,478.36 million as on Mar. 31, 2017, down 5.70 percent or $89.43 million from $1,567.80 million on Mar. 31, 2016. Total debt was 30.02 percent of total assets as on Mar. 31, 2017, compared with 29.32 percent on Mar. 31, 2016. Debt to equity ratio was at 0.53 as on Mar. 31, 2017, up from 0.52 as on Mar. 31, 2016.
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