Calumet Specialty Products Partners, L.P. (CLMT) saw its loss narrow to $6.20 million in the quarter ended compared with $67.70 million, a year ago. Revenue during the quarter surged 31.47 percent to $937.40 million from $713 million in the previous year period. Gross margin for the quarter expanded 279 basis points over the previous year period to 14.88 percent. Operating margin for the quarter period stood at positive 3.39 percent as compared to a negative 2.64 percent for the previous year period.
Operating income for the quarter was $31.80 million, compared with an operating loss of $18.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $78.70 million compared with $6.60 million in the prior year period. At the same time, adjusted EBITDA margin improved 747 basis points in the quarter to 8.40 percent from 0.93 percent in the last year period.
“Our solid performance this quarter shows that we continue to turn the corner on our transformation, as we successfully execute against the strategic goals we set last year,” said Tim Go, Chief Executive Officer of Calumet. “We believe that our ongoing efforts to eliminate waste, reduce costs, and capture increased margins across our business have begun to positively impact our financial performance. This was evident by our decreased net loss, solid improvement in Adjusted EBITDA and improved sequential gross margins in both the specialty and fuels businesses. We remain focused on further reducing the costs of doing business, while simultaneously growing our sales volumes and creating innovative new products, all of which should help us drive greater profitability in the future.”
Operating cash flow remains negativeCalumet Specialty Products Partners, L.P. has spent $40.70 million cash to meet operating activities during the quarter as against cash outgo of $56.10 million in the last year period. The company has spent $17.20 million cash to meet investing activities during the quarter as against cash outgo of $67.70 million in the last year period.
Cash flow from financing activities was $58.30 million for the quarter, down 53.51 percent or $67.10 million, when compared with the last year period.
Cash and cash equivalents stood at $4.60 million as on Mar. 31, 2017, down 36.11 percent or $2.60 million from $7.20 million on Mar. 31, 2016.
Working capital increases sharply
Calumet Specialty Products Partners, L.P. has recorded an increase in the working capital over the last year. It stood at $205.50 million as at Mar. 31, 2017, up 283.40 percent or $151.90 million from $53.60 million on Mar. 31, 2016. Current ratio was at 1.41 as on Mar. 31, 2017, up from 1.09 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 11 days for the quarter from 43 days for the last year period. Days sales outstanding went down to 22 days for the quarter compared with 28 days for the same period last year.
Days inventory outstanding has decreased to 25 days for the quarter compared with 59 days for the previous year period. At the same time, days payable outstanding went down to 36 days for the quarter from 44 for the same period last year.
Debt moves up
Calumet Specialty Products Partners, L.P. has witnessed an increase in total debt over the last one year. It stood at $2,027.40 million as on Mar. 31, 2017, up 7.57 percent or $142.60 million from $1,884.80 million on Mar. 31, 2016. Total debt was 73.55 percent of total assets as on Mar. 31, 2017, compared with 62.86 percent 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]
