Wright Medical Group N.V. (WMGI) saw its loss narrow to $44.88 million, or $0.43 a share for the quarter ended Dec. 25, 2016. In the previous year period, the company reported a loss of $105.78 million, or $1.03 a share. On the other hand, adjusted net loss for the quarter narrowed to $13.77 million, or $0.06 a share from a loss of $89.27 million or $0.08 a share, a year ago. Revenue during the quarter grew 15.70 percent to $193.02 million from $166.83 million in the previous year period. Gross margin for the quarter expanded 365 basis points over the previous year period to 73.79 percent. Operating margin for the quarter stood at negative 9.99 percent as compared to a negative 48.11 percent for the previous year period.
Operating loss for the quarter was $19.29 million, compared with an operating loss of $80.26 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $22.67 million compared with $10.93 million in the prior year period. At the same time, adjusted EBITDA margin improved 519 basis points in the quarter to 11.75 percent from 6.55 percent in the last year period.
Robert Palmisano, president and chief executive officer, commented, “We had a very good fourth quarter, and our full-year results reflect the continued strong underlying growth and positive momentum in all three of our high-growth businesses and our leadership positions in these markets. Our pro forma constant currency global sales growth of 12%, despite an estimated 3% headwind from dis-synergies, was an acceleration from the third quarter of 2016, and combined with earlier than anticipated progress on capturing cost synergies, resulted in net sales and positive adjusted EBITDA results that exceeded our expectations. We drove significant overperformance on the top
For fiscal year 2017, Wright Medical Group N.V. expects revenue to be in the range of $755 million to $765 million and its adjusted diluted loss per share to be in the range of $0.33 to $0.26.
Working capital declinesWright Medical Group N.V. has witnessed a decline in the working capital over the last year. It stood at $285.11 million as at Dec. 25, 2016, down 19.22 percent or $67.84 million from $352.95 million on Dec. 27, 2015. Current ratio was at 1.60 as on Dec. 25, 2016, down from 2.71 on Dec. 27, 2015. Cash conversion cycle (CCC) has decreased to 137 days for the quarter from 200 days for the last year period. Days sales outstanding went down to 31 days for the quarter compared with 36 days for the same period last year.
Days inventory outstanding has decreased to 136 days for the quarter compared with 192 days for the previous year period. At the same time, days payable outstanding went up to 30 days for the quarter from 28 for the same period last year.
Debt increases substantially Wright Medical Group N.V. has witnessed an increase in total debt over the last one year. It stood at $814.36 million as on Dec. 25, 2016, up 44.55 percent or $250.98 million from $563.37 million on Dec. 27, 2015. Total debt was 35.55 percent of total assets as on Dec. 25, 2016, compared with 26.96 percent on Dec. 27, 2015. Debt to equity ratio was at 1.19 as on Dec. 25, 2016, up from 0.53 as on Dec. 27, 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
