Cliffs Natural Resources Inc. (CLF) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $28.10 million, or $ 0.11 a share in the quarter, against a net profit of $108 million, or $0.62 a share in the last year period. Revenue during the quarter surged 51.10 percent to $461.60 million from $305.50 million in the previous year period. Gross margin for the quarter expanded 1062 basis points over the previous year period to 20.73 percent. Operating margin for the quarter period stood at positive 17.74 percent as compared to a negative 0.10 percent for the previous year period.
Operating income for the quarter was $81.90 million, compared with an operating loss of $0.30 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $92.20 million compared with $36.30 million in the prior year period. At the same time, adjusted EBITDA margin improved 809 basis points in the quarter to 19.97 percent from 11.88 percent in the last year period.
Lourenco Goncalves, Cliffs chairman, president and chief executive officer, said, "During the first quarter, we put our finishing touches on what has been a remarkable operational, commercial and financial transformation of this company. Over the last two and half years, Cliffs has transformed itself into a lean and focused company, with a strong balance sheet and a lot less to pay in interest expense. This is particularly evident in our strong first quarter results, which exceeded our expectations in revenues, EBITDA and earnings per share." Mr. Goncalves concluded: "We expect 2017 to be a phenomenal year of EBITDA and free cash flow generation."
For fiscal year 2017, Cliffs Natural Resources Inc. projects net income to be $380 million.
Operating cash flow remains negativeCliffs Natural Resources Inc. has spent $25.10 million cash to meet operating activities during the quarter as against cash outgo of $126.50 million in the last year period. The company has spent $27.40 million cash to meet investing activities during the quarter as against cash outgo of $4.90 million in the last year period.
Cash flow from financing activities was $23 million for the quarter as against cash outgo of $93.40 million in the last year period.
Cash and cash equivalents stood at $295.30 million as on Mar. 31, 2017, up 392.99 percent or $235.40 million from $59.90 million on Mar. 31, 2016.
Working capital increases sharply
Cliffs Natural Resources Inc. has recorded an increase in the working capital over the last year. It stood at $503.90 million as at Mar. 31, 2017, up 43.07 percent or $151.70 million from $352.20 million on Mar. 31, 2016. Current ratio was at 2.63 as on Mar. 31, 2017, up from 1.80 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 31 days for the quarter from 148 days for the last year period. Days sales outstanding went down to 24 days for the quarter compared with 40 days for the same period last year.
Days inventory outstanding has decreased to 31 days for the quarter compared with 139 days for the previous year period. At the same time, days payable outstanding went down to 24 days for the quarter from 30 for the same period last year.
Debt comes down significantly
Cliffs Natural Resources Inc. has recorded a decline in total debt over the last one year. It stood at $1,642.90 million as on Mar. 31, 2017, down 34.26 percent or $856.20 million from $2,499.10 million on Mar. 31, 2016. Cliffs Natural Resources Inc. has recorded a decline in long-term debt over the last one year. Total debt was 85.31 percent of total assets as on Mar. 31, 2017, compared with 132.49 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]
