An Eye on Earnings Report: Diplomat Pharmacy, Inc. (NYSE: DPLO)

Diplomat Pharmacy, Inc. (NYSE: DPLO) above +1.08% and ended at $26.17. The stock’s market capitalization arrived at $1.938B and total traded volume was 544,362 shares. The stock has a 52-week highest price of $28.74 and its 52-week lowest price was called at $14.50. During last trade, its maximum trading price was registered $26.19 and it’s the minimum trading price was noted $25.58.

Diplomat Pharmacy, Inc. (NYSE: DPLO) reported financial results for the quarter ended March 31, 2018.  All comparisons, unless otherwise noted, are to the quarter ended March 31, 2017.

First Quarter 2018 Highlights include:

Revenue of $1,342M, contrast to $1,079M, a raise of 24%

Specialty section total prescriptions dispensed of 223,000, contrast to 220,000

PBM section total volume, adjusted to 30-day equivalent, of 2,181,000

Gross margin of 8.2% versus 7.9%

EPS of $(0.01) per diluted ordinary share versus $0.06

Adjusted EBITDA of $39.6M, contrast to $26.8M

Net cash provided by operating activities was $48.6M, contrast to $44.3M

Net debt, including contingent consideration, reduced to $601.5M, from $648.7M at December 31, 2017

First Quarter Financial Summary:

Revenue for the first quarter of 2018 was $1,342M, contrast to $1,079M in the first quarter of 2017, a raise of $263M or 24%.  Revenue was comprised of $1,153M and $191M from our Specialty section and our newly formed Pharmacy Benefit Management (“PBM”) section, respectively.  There was a $2.0M inter-company elimination of revenue, and associated cost of sales, between the sections.  The increase in our Specialty section revenue was primarily driven by $31M of revenue from our other acquisitions as well as manufacturer price increases, access to dispense drugs that were new in the past year and increased volume through payor relationships.  These increases were partially offset by a decrease in hepatitis C business versus the previous year period and drug mix.

Gross profit in the first quarter of 2018 was $110.6M and generated an 8.2% gross margin, contrast to $85.0M gross profit and 7.9% gross margin in the first quarter of 2017.  Gross profit was comprised of $93.0M and $17.6M from our Specialty section and PBM section, respectively.  The gross margin increase in the quarter was primarily Because of the impact of our PBM acquisitions, which includes all contracts reflected on a net revenue basis with associated product and service cost of goods, as well as the impact of the purchased entities in our Specialty section, and manufacturer price increases in the first quarter of 2018 versus the previous year period.

 

Selling, general, and administrative expenses (“SG&A”) for the first quarter of 2018 were $101.9M, a raise of $25.4M, contrast to $76.5M in the first quarter of 2017.  This increase is primarily driven by $11.5M related to employee cost, including employee cost for our purchased entities and stock option compensation.  Also contributing to the SG&A expense increase was a $7.5M increase in amortization expense from definite-lived intangible assets, including the capitalized software for internal use, associated with our purchased entities and a one-time $2.1M severance and merger and acquisition expense associated with our purchased entities.  We also experienced increases in other SG&A; including, freight, building and equipment, travel, insurance, and other miscellaneous expenses.

Net (loss) income attributable to Diplomat for the first quarter of 2018 was $(0.5)M contrast to $4.4M in the first quarter of 2017.  This decrease was primarily driven by an $8.4M increase in interest expense Because of a important increase in outstanding debt to fund our PBM acquisitions, partially offset by an income tax benefit of $0.9M in the first quarter of 2018 versus income tax expense of $2.3M in the previous year period.  The income tax benefit during the first quarter of 2018 was inclusive of a $0.3M excess tax benefit related to share-based awards.  Adjusted EBITDA for the first quarter of 2018 was $39.6M contrast to $26.8M in the first quarter of 2017, a raise of $12.8M.

Earnings per share for the first quarter of 2018 was $(0.01), contrast to $0.07 for the first quarter of 2017.  On a diluted basis, earnings per share was $(0.01) in the first quarter of 2018, contrast to $0.06 in the previousyear period.  Diluted non-GAAP adjusted earnings per share (“Adjusted EPS”) was $0.20 in the first quarter of this year contrast to $0.19 in the first quarter of 2017.

Diplomat Pharmacy, Inc.’s (DPLO) stock price showed strong performance of 0.11% in last seven days, switched up 0.27% in last thirty days and it rose 73.54% in last one year.

It has 73.71 million of outstanding shares and its shares float measured at 56.04.

 

Angela Maria

Angela writes about Dividend news of Healthcare, Services, technology, financial, energy sector companies and other global companies that traded in US market. Before pursuing a financial and journalism career, she graduated from University of Georgia with a degree in Economic and Mathematics.

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