Amplify Snack Brands, Inc. (BETR) has reported a 92.24 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $8.48 million, or $0.11 a share in the quarter, compared with $4.41 million, or $0.06 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $6.60 million, or $0.09 a share compared with $9.48 million or $0.13 a share, a year ago. Revenue during the quarter surged 91.10 percent to $88.62 million from $46.37 million in the previous year period. Gross margin for the quarter contracted 1493 basis points over the previous year period to 41.54 percent. Total expenses were 81.05 percent of quarterly revenues, up from 76.83 percent for the same period last year. That has resulted in a contraction of 421 basis points in operating margin to 18.95 percent.
Operating income for the quarter was $16.80 million, compared with $10.74 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $23.54 million compared with $18.74 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1386 basis points in the quarter to 26.56 percent from 40.42 percent in the last year period.
"2016 was a year of transformation for Amplify. We strategically expanded and diversified our better-for-you product offering and began to make key leadership team additions to further strengthen our execution to deliver the growth we know our company is capable of achieving over the next several years," said Tom Ennis, Amplify’s president and chief executive officer. "Our fourth quarter financial performance reflects the strong momentum for our SkinnyPop, Paqui and Oatmega brands, and the addition of Tyrrells. We continued to generate best-in-class velocities while simultaneously increasing our points of distribution and gaining market share across a wide range of sales channels. Looking ahead, we have a robust innovation pipeline and remain very excited about our acquisition of Tyrrells as we begin to leverage our cross selling opportunities during 2017."
Amplify Snack Brands, Inc. projects revenue to be in the range of $404 million to $420 million. The company forecasts diluted earnings per share to be in the range of $0.43 to $0.51 on adjusted basis.
Working capital turns positive
Working capital of Amplify Snack Brands, Inc. has turned positive to $19.19 million on Dec. 31, 2016 from negative $20.48 million on Dec. 31, 2015. Current ratio was at 1.32 as on Dec. 31, 2016, up from 0.65 on Dec. 31, 2015. Days sales outstanding went up to 22 days for the quarter compared with 12 days for the same period last year.
Days inventory outstanding was almost stable at 16 days for the quarter, when compared with the last year period.
Debt increases substantially
Amplify Snack Brands, Inc. has witnessed an increase in total debt over the last one year. It stood at $592.39 million as on Dec. 31, 2016, up 198.87 percent or $394.18 million from $198.21 million on Dec. 31, 2015. Total debt was 70.67 percent of total assets as on Dec. 31, 2016, compared with 54.94 percent on Dec. 31, 2015. Debt to equity ratio was at 11.45 as on Dec. 31, 2016, down from 12.85 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.51 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]
