Acco Brands Corporation (ACCO) has reported 80.57 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $6.10 million, or $0.06 a share in the quarter, compared with $31.40 million, or $0.29 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $35.60 million, or $0.32 a share compared with $32.50 million or $0.30 a share, a year ago.
Revenue during the quarter grew 6.19 percent to $437.60 million from $412.10 million in the previous year period. Gross margin for the quarter expanded 168 basis points over the previous year period to 35.12 percent. Total expenses were 86.36 percent of quarterly revenues, up from 86.19 percent for the same period last year. That has resulted in a contraction of 16 basis points in operating margin to 13.64 percent.
Operating income for the quarter was $59.70 million, compared with $56.90 million in the previous year period.
However, the adjusted operating income for the quarter stood at $64.80 million compared to $56.80 million in the prior year period. At the same time, adjusted operating margin improved 102 basis points in the quarter to 14.81 percent from 13.78 percent in the last year period.
"We are pleased to report strong fourth quarter results--an appropriate finish to a great year for ACCO Brands," said Boris Elisman, chairman, president and chief executive officer of ACCO Brands. "For the full year, each of our business segments contributed to revenue growth or profit improvement and delivered strong free cash flow. With the completion of the Pelikan Artline and Esselte acquisitions, and the refinancing of our debt, our company is well positioned to deliver strong shareholder returns in the years ahead."
For financial year 2017, Acco Brands Corporation projects revenue to grow in the range of 22 percent to 26 percent. The company forecasts diluted earnings per share to be in the range of $1.05 to $1.09 on adjusted basis.
Operating cash flow falls marginallyAcco Brands Corporation has generated cash of $165.90 million from operating activities during the year, down 3.10 percent or $5.30 million, when compared with the last year. The company has spent $106.40 million cash to meet investing activities during the year as against cash outgo of $24.60 million in the last year. It has incurred net capital expenditure of $17.80 million on net basis during the year, down 28.23 percent or $7 million from year ago.
The company has spent $75.20 million cash to carry out financing activities during the year as against cash outgo of $137.80 million in the last year period.
Cash and cash equivalents stood at $42.90 million as on Dec. 31, 2016, down 22.56 percent or $12.50 million from $55.40 million on Dec. 31, 2015.
Working capital declines
Acco Brands Corporation has witnessed a decline in the working capital over the last year. It stood at $264.30 million as at Dec. 31, 2016, down 11.40 percent or $34 million from $298.30 million on Dec. 31, 2015. Current ratio was at 1.65 as on Dec. 31, 2016, down from 1.84 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 53 days for the quarter from 51 days for the last year period. Days sales outstanding were almost stable at 41 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 34 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went down to 22 days for the quarter from 25 for the same period last year.
Debt comes down marginallyAcco Brands Corporation has recorded a decline in total debt over the last one year. It stood at $696.20 million as on Dec. 31, 2016, down 3.37 percent or $24.30 million from $720.50 million on Dec. 31, 2015. Short-term debt stood at $68.50 million as on Dec. 31, 2016. Total debt was 33.72 percent of total assets as on Dec. 31, 2016, compared with 36.88 percent on Dec. 31, 2015. Debt to equity ratio was at 0.98 as on Dec. 31, 2016, down from 1.24 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 4.66 for the quarter from 5.17 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]
