GNC Holdings, Inc. (GNC) has reported a 19.69 percent fall in profit for the quarter ended Mar. 31, 2016. The company has earned $50.82 million, or $0.69 a share in the quarter, compared with $63.27 million, or $0.72 a share for the same period last year.
Revenue during the quarter went down marginally by 1.81 percent to $668.90 million from $681.27 million in the previous year period. Gross margin for the quarter contracted 135 basis points over the previous year period to 35.26 percent. Total expenses were 85.94 percent of quarterly revenues, up from 83.91 percent for the same period last year. That has resulted in a contraction of 203 basis points in operating margin to 14.06 percent.
Operating income for the quarter was $94.06 million, compared with $109.60 million in the previous year period.
Operating cash flow improves
GNC Holdings, Inc. has generated cash of $142.32 million from operating activities during the quarter, up 21.71 percent or $25.39 million, when compared with the last year period. The company has spent $10.23 million cash to meet investing activities during the quarter as against cash outgo of $7.25 million in the last year period. It has incurred capital expenditure of $9.71 million on net basis during the quarter, up 39.38 percent or $2.74 million from year ago period.
The company has spent $128.35 million cash to carry out financing activities during the quarter as against cash outgo of $76.51 million in the last year period.
Cash and cash equivalents stood at $61 million as on Mar. 31, 2016, down 63.46 percent or $105.93 million from $166.93 million on Mar. 31, 2015.
Working capital drops significantly
GNC Holdings, Inc. has witnessed a decline in the working capital over the last year. It stood at $443.59 million as at Mar. 31, 2016, down 29.28 percent or $183.64 million from $627.23 million on Mar. 31, 2015. Current ratio was at 2.21 as on Mar. 31, 2016, down from 3.26 on Mar. 31, 2015.
Cash conversion cycle (CCC) has decreased to 98 days for the quarter from 106 days for the last year period. Days sales outstanding were almost stable at 18 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 118 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 38 days for the quarter from 29 for the same period last year.
Debt moves up
GNC Holdings, Inc.has witnessed an increase in total debt over the last one year. It stood at $1,540.94 million as on Mar. 31, 2016, up 14.88 percent or $199.58 million from $1,341.36 million on Mar. 31, 2015. Total debt was 60.25 percent of total assets as on Mar. 31, 2016, compared with 49.73 percent on Mar. 31, 2015. Debt to equity ratio was at 5.32 as on Mar. 31, 2016, up from 1.82 as on Mar. 31, 2015.
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]