Andersons (ANDE) saw its loss narrow to $3.09 million, or $0.11 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $14.70 million, or $0.52 a share.
Revenue during the quarter dropped 4.04 percent to $852.02 million from $887.88 million in the previous year period. Gross margin for the quarter expanded 134 basis points over the previous year period to 8.97 percent. Total expenses were 81.41 percent of quarterly revenues, down from 83.37 percent for the same period last year. This has led to an improvement of 196 basis points in operating margin to 18.59 percent.
Operating income for the quarter was $158.40 million, compared with $147.64 million in the previous year period.
"Three of our four businesses posted better year-over-year results," chief executive officer Pat Bowe. “While we are not satisfied with our overall results, we continue to work hard to improve execution, sharpen our cost focus, and position the Company for profitable growth. We are closing our Retail business and sold underperforming Plant Nutrient Group assets in Florida. We also acquired a small specialty grain handling and milling business that further expands our food ingredient capabilities."
Working capital increasesAndersons has recorded an increase in the working capital over the last year. It stood at $228.52 million as at Mar. 31, 2017, up 13.23 percent or $26.71 million from $201.81 million on Mar. 31, 2016. Current ratio was at 1.30 as on Mar. 31, 2017, up from 1.23 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 40 days for the quarter from 80 days for the last year period. Days sales outstanding were almost stable at 19 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 37 days for the quarter compared with 80 days for the previous year period. At the same time, days payable outstanding went down to 16 days for the quarter from 20 for the same period last year.
Debt comes downAndersons has recorded a decline in total debt over the last one year. It stood at $677.12 million as on Mar. 31, 2017, down 7.30 percent or $53.29 million from $730.41 million on Mar. 31, 2016. Total debt was 31.32 percent of total assets as on Mar. 31, 2017, compared with 31.49 percent on Mar. 31, 2016. Debt to equity ratio was at 0.87 as on Mar. 31, 2017, down from 0.95 as on Mar. 31, 2016. 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]
