Gnc Holdings (GNC) has reported a 14.29 percent fall in profit for the year ended Dec. 31, 2015. The company has earned $219.30 million, or $2.60 a share in the year, compared with $255.87 million, or $2.81 a share for the last year. Revenue during the year went up marginally by 1 percent to $2,639.21 million from $2,613.15 million in the previous year. Gross margin for the year contracted 20 basis points over the previous year to 37.31 percent. Total expenses were 85.11 percent of annual revenues, up from 83.18 percent for the last year. That has resulted in a contraction of 192 basis points in operating margin to 14.89 percent.
Operating income for the year was $393.11 million, compared with $439.51 million in the previous year.
Operating cash flow improves
Gnc Holdings has generated cash of $354.53 million from operating activities during the year, up 16.71 percent or $50.75 million, when compared with the last year. The company has spent $45.65 million cash to meet investing activities during the year as against cash outgo of $75.49 million in the last year.
The company has spent $384.46 million cash to carry out financing activities during the year as against cash outgo of $321.01 million in the last year period.
Cash and cash equivalents stood at $56.46 million as on Dec. 31, 2015, down 57.81 percent or $77.37 million from $133.83 million on Dec. 31, 2014.
Working capital declines
Gnc Holdings has witnessed a decline in the working capital over the last year. It stood at $515.15 million as at Dec. 31, 2015, down 19 percent or $120.85 million from $636 million on Dec. 31, 2014. Current ratio was at 2.85 as on Dec. 31, 2015, down from 3.65 on Dec. 31, 2014.
Cash conversion cycle (CCC) has decreased to 110 days for the year from 118 days for the last year. Days sales outstanding were almost stable at 20 days for the year, when compared with the last year period.
Days inventory outstanding has decreased to 122 days for the year compared with 130 days for the previous year period. At the same time, days payable outstanding went up to 32 days for the year from 31 for the same period last year.
Debt moves up
Gnc Holdings has witnessed an increase in total debt over the last one year. It stood at $1,452.45 million as on Dec. 31, 2015, up 8.20 percent or $110.08 million from $1,342.38 million on Dec. 31, 2014. Total debt was 56.91 percent of total assets as on Dec. 31, 2015, compared with 50.13 percent on Dec. 31, 2014. Debt to equity ratio was at 3.10 as on Dec. 31, 2015, up from 1.78 as on Dec. 31, 2014. 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]