CF Industries Holdings (CF) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $23 million, or $ 0.10 a share in the quarter, against a net profit of $26 million, or $0.11 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $11 million, or $0.05 a share compared with $100 million or $0.43 a share, a year ago. Revenue during the quarter grew 3.29 percent to $1,037 million from $1,004 million in the previous year period. Gross margin for the quarter contracted 1139 basis points over the previous year period to 10.22 percent. Total expenses were 94.50 percent of quarterly revenues, up from 90.34 percent for the same period last year. That has resulted in a contraction of 416 basis points in operating margin to 5.50 percent.
Operating income for the quarter was $57 million, compared with $97 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $272 million compared with $300 million in the prior year period. At the same time, adjusted EBITDA margin contracted 365 basis points in the quarter to 26.23 percent from 29.88 percent in the last year period.
"Outstanding execution by our team across the CF system delivered company record sales and production volumes in the first quarter, and we increased cash on our balance sheet as a result," said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. "This high level of performance, paired with our enduring structural and operational advantages, positions us well for the rest of 2017 and the industry recovery we expect to begin in 2018."
Operating cash flow improves marginally
CF Industries Holdings has generated cash of $356 million from operating activities during the quarter, up 2.89 percent or $10 million, when compared with the last year period. The company has spent $85 million cash to meet investing activities during the quarter as against cash outgo of $662 million in the last year period. It has incurred net capital expenditure of $86 million on net basis during the quarter, down 87.24 percent or $588 million from year ago period.
The company has spent $124 million cash to carry out financing activities during the quarter as against cash inflow of $2,717 million in the last year period.
Cash and cash equivalents stood at $1,312 million as on Mar. 31, 2017, down 51.21 percent or $1,377 million from $2,689 million on Mar. 31, 2016.
Working capital declines
CF Industries Holdings has witnessed a decline in the working capital over the last year. It stood at $1,952 million as at Mar. 31, 2017, down 13.13 percent or $295 million from $2,247 million on Mar. 31, 2016. Current ratio was at 3.29 as on Mar. 31, 2017, up from 2.77 on Mar. 31, 2016.
Days sales outstanding went down to 23 days for the quarter compared with 24 days for the same period last year.
Days inventory outstanding has decreased to 18 days for the quarter compared with 36 days for the previous year period.
Debt moves up marginally
CF Industries Holdings has witnessed an increase in total debt over the last one year. It stood at $5,780 million as on Mar. 31, 2017, up 4.35 percent or $241 million from $5,539 million on Mar. 31, 2016. Cf Industries Holdings has witnessed an increase in long-term debt over the last one year. It stood at $5,780 million as on Mar. 31, 2017, up 4.35 percent or $241 million from $5,539 million on Mar. 31, 2016. Total debt was 38.06 percent of total assets as on Mar. 31, 2017, compared with 35.55 percent on Mar. 31, 2016. Debt to equity ratio was at 0.91 as on Mar. 31, 2017, up from 0.77 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.71 for the quarter from 2.55 for the same period last year.
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