US Ecology, Inc (ECOL) has reported a 31.02 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $5.18 million, or $0.24 a share in the quarter, compared with $7.52 million, or $0.35 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $5.12 million, or $0.23 a share compared with $6.99 million or $0.32 a share, a year ago. Revenue during the quarter went down marginally by 2.72 percent to $110.23 million from $113.32 million in the previous year period. Gross margin for the quarter contracted 216 basis points over the previous year period to 28.91 percent. Total expenses were 88.97 percent of quarterly revenues, up from 86.07 percent for the same period last year. That has resulted in a contraction of 290 basis points in operating margin to 11.03 percent.
Operating income for the quarter was $12.16 million, compared with $15.78 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $23.45 million compared with $26.12 million in the prior year period. At the same time, adjusted EBITDA margin contracted 177 basis points in the quarter to 21.28 percent from 23.05 percent in the last year period.
"First quarter operating results and adjusted EBITDA were consistent with our expectations as we cycled some completed event projects as well as a Field and Industrial Services contract that was not renewed," commented chairman and chief executive officer, Jeff Feeler. "Base Business for the Environmental Services segment continued its positive momentum with a 3% increase over what was a strong first quarter of 2016. As expected, Event Business for the Environmental Services segment was down 9% in the first quarter due to the strength of our Event Business in the first quarter of 2016."
For fiscal year 2017, Us Ecology forecasts net income to be in the range of $36.90 million to $42 million. For financial year 2017, the company projects diluted earnings per share to be in the range of $1.69 to $1.93.
Operating cash flow drops significantly
US Ecology, Inc has generated cash of $20.87 million from operating activities during the quarter, down 31 percent or $ 9.38 million, when compared with the last year period. The company has spent $7.12 million cash to meet investing activities during the quarter as against cash outgo of $7.21 million in the last year period. It has incurred net capital expenditure of $7.11 million on net basis during the quarter, down 0.73 percent or $0.05 million from year ago period.
The company has spent $10.49 million cash to carry out financing activities during the quarter as against cash outgo of $14.91 million in the last year period.
Cash and cash equivalents stood at $10.31 million as on Mar. 31, 2017, down 27.82 percent or $3.97 million from $14.28 million on Mar. 31, 2016.
Working capital increases
US Ecology, Inc has recorded an increase in the working capital over the last year. It stood at $55.50 million as at Mar. 31, 2017, up 9.66 percent or $4.89 million from $50.61 million on Mar. 31, 2016. Current ratio was at 1.95 as on Mar. 31, 2017, up from 1.76 on Mar. 31, 2016.
Days sales outstanding were almost stable at 82 days for the quarter, when compared with the last year period.
Debt comes down marginally
US Ecology, Inc has recorded a decline in total debt over the last one year. It stood at $273.03 million as on Mar. 31, 2017, down 3.69 percent or $10.47 million from $283.51 million on Mar. 31, 2016. Total debt was 35.38 percent of total assets as on Mar. 31, 2017, compared with 36.90 percent on Mar. 31, 2016. Debt to equity ratio was at 0.96 as on Mar. 31, 2017, down from 1.08 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 2.94 for the quarter from 3.46 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: [email protected]
