Belmond Ltd (BEL) has reported 1,575 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $6.70 million, or $0.07 a share in the quarter, compared with $0.40 million, or $0.00 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1.40 million, or $0.01 a share compared with $2.80 million or $0.03 a share, a year ago.
Revenue during the quarter dropped 6.93 percent to $114.20 million from $122.70 million in the previous year period. Gross margin for the quarter expanded 387 basis points over the previous year period to 84.15 percent. Total expenses were 3.68 percent of quarterly revenues, down from 7.17 percent for the same period last year. This has led to an improvement of 349 basis points in operating margin to 96.32 percent.
Operating income for the quarter was $110 million, compared with $113.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $16.40 million compared with $22.50 million in the prior year period. At the same time, adjusted EBITDA margin contracted 398 basis points in the quarter to 14.36 percent from 18.34 percent in the last year period.
Roeland Vos, president and chief executive officer, remarked: "We are pleased with our performance for the full year 2016, delivering 8% adjusted EBITDA growth on a constant currency basis. This strong result was in line with the long-term goals we laid out in our strategic plan and reflected our heightened focus on driving incremental revenue and EBITDA from our existing operations. We successfully leveraged strong demand during peak periods, notably at our European properties during the summer season and Belmond Copacabana Palace in Rio de Janeiro, Brazil, during the 2016 Summer Olympic Games, and continued our disciplined approach of investing in our portfolio to drive additional growth. Largely as a result of these efforts, our third quarter 2016 adjusted EBITDA increased 25% over the prior-year quarter on a constant currency basis. However, our performance for our seasonally low fourth quarter of 2016 did not meet our expectations, primarily due to lower than expected results for our two hotels in Brazil. While we had anticipated a reduction in demand following the Olympics and stemming from the country's difficult economic situation, the actual result was below what we had projected, with fourth quarter 2016 RevPAR coming in lower than our guidance.
Working capital increasesBelmond Ltd has recorded an increase in the working capital over the last year. It stood at $107.40 million as at Dec. 31, 2016, up 17.81 percent or $16.24 million from $91.16 million on Dec. 31, 2015. Current ratio was at 1.88 as on Dec. 31, 2016, up from 1.73 on Dec. 31, 2015.
Debt moves up marginallyBelmond Ltd has witnessed an increase in total debt over the last one year. It stood at $591.10 million as on Dec. 31, 2016, up 1.42 percent or $8.30 million from $582.80 million on Dec. 31, 2015. Total debt was 38.78 percent of total assets as on Dec. 31, 2016, compared with 38.61 percent on Dec. 31, 2015. Debt to equity ratio was at 0.86 as on Dec. 31, 2016, down from 0.89 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 18.64 for the quarter from 14.79 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]
