Zimmer Biomet Holdings, Inc (ZMH) has reported a 47.56 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $66.60 million, or $0.33 a share in the quarter, compared with $127 million, or $0.62 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $434.10 million, or $2.14 a share compared with $428.30 million or $2.09 a share, a year ago. Revenue during the quarter grew 4.11 percent to $2,013.10 million from $1,933.60 million in the previous year period. Gross margin for the quarter expanded 407 basis points over the previous year period to 69.46 percent. Total expenses were 90.80 percent of quarterly revenues, up from 88.96 percent for the same period last year. That has resulted in a contraction of 184 basis points in operating margin to 9.20 percent.
Operating income for the quarter was $185.30 million, compared with $213.50 million in the previous year period.
"Zimmer Biomet delivered solid revenue growth in the fourth quarter. Our performance was driven, in part, by the reacceleration of our Knee and Hip businesses, as well as the ongoing strength of our S.E.T. category and Asia Pacific region," said David Dvorak, president and chief executive officer of Zimmer Biomet. “As we reflect on the completion of our first full year as a combined company, our achievements have further strengthened our confidence in the unique value-creation opportunity we offer in the dynamic global healthcare environment. We will continue to drive growth across our broad musculoskeletal portfolio in 2017, as we remain focused on delivering against our net synergy commitments and making ongoing progress towards optimizing and harmonizing our supply chain, and manufacturing and quality systems."
For financial year 2017, Zimmer Biomet Holdings, Inc projects revenue to be in the range of $7.86 million to $7.93 million. The company forecasts diluted earnings per share to be in the range of $4.37 to $4.67. It company forecasts diluted earnings per share to be in the range of $8.50 to $8.68 on adjusted basis.
Operating cash flow improves significantly
Zimmer Biomet Holdings, Inc has generated cash of $1,632.20 million from operating activities during the year, up 92.07 percent or $782.40 million, when compared with the last year. The company has spent $1,691.50 million cash to meet investing activities during the year as against cash outgo of $7,557.90 million in the last year.
The company has spent $743.20 million cash to carry out financing activities during the year as against cash inflow of $7,106.70 million in the last year period.
Cash and cash equivalents stood at $634.10 million as on Dec. 31, 2016, down 56.55 percent or $825.20 million from $1,459.30 million on Dec. 31, 2015.
Debt comes down marginally
Zimmer Biomet Holdings, Inc has recorded a decline in total debt over the last one year. It stood at $11,245.40 million as on Dec. 31, 2016, down 2.19 percent or $252 million from $11,497.40 million on Dec. 31, 2015. Short-term debt stood at $575.60 million as on Dec. 31, 2016. Total debt was 42.42 percent of total assets as on Dec. 31, 2016, compared with 42.24 percent on Dec. 31, 2015. Debt to equity ratio was at 1.17 as on Dec. 31, 2016, up from 1.16 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 2.06 for the quarter from 2.37 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
