Libbey Inc. (LBY) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $6.57 million, or $ 0.30 a share in the quarter, against a net profit of $0.72 million, or $0.03 a share in the last year period. Revenue during the quarter dropped 5.32 percent to $173.67 million from $183.42 million in the previous year period. Gross margin for the quarter contracted 434 basis points over the previous year period to 17.45 percent. Operating margin for the quarter stood at negative 1.53 percent as compared to a positive 3.18 percent for the previous year period.
Operating loss for the quarter was $2.66 million, compared with an operating income of $5.84 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $6.23 million compared with $22.85 million in the prior year period. At the same time, adjusted EBITDA margin contracted 887 basis points in the quarter to 3.59 percent from 12.46 percent in the last year period.
"Our first quarter results reflected net sales that were in line with our expectations, but a continuation of difficult end-market conditions in our foodservice and retail channels resulted in lower profitability than we anticipated during the quarter," said William A. Foley, chairman and chief executive officer. “Planned furnace rebuilds, the initiation of some technology investments, foreign currency, unfavorable price and product mix, and the mark-to-market impact of certain natural gas hedges, all negatively impacted profitability in the quarter. As a result, we’ve begun taking proactive measures to ensure the strength of our business, and we’ve revised our full-year outlook accordingly."
For financial year 2017, Libbey Inc. projects net income to grow in the range of $1 percent to $2 percent.
Operating cash flow remains negativeLibbey Inc. has spent $6.31 million cash to meet operating activities during the quarter as against cash outgo of $4.50 million in the last year period. The company has spent $11.95 million cash to meet investing activities during the quarter as against cash outgo of $9.86 million in the last year period.
The company has spent $9.27 million cash to carry out financing activities during the quarter as against cash outgo of $9.43 million in the last year period.
Cash and cash equivalents stood at $33.74 million as on Mar. 31, 2017, up 31.96 percent or $8.17 million from $25.57 million on Mar. 31, 2016.
Working capital declines
Libbey Inc. has witnessed a decline in the working capital over the last year. It stood at $160.95 million as at Mar. 31, 2017, down 8.15 percent or $14.28 million from $175.23 million on Mar. 31, 2016. Current ratio was at 2.09 as on Mar. 31, 2017, down from 2.17 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 57 days for the quarter from 120 days for the last year period. Days sales outstanding were almost stable at 46 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 55 days for the quarter compared with 117 days for the previous year period. At the same time, days payable outstanding went up to 44 days for the quarter from 43 for the same period last year.
Debt comes down
Libbey Inc. has recorded a decline in total debt over the last one year. It stood at $401.94 million as on Mar. 31, 2017, down 5.48 percent or $23.29 million from $425.23 million on Mar. 31, 2016. Total debt was 50.29 percent of total assets as on Mar. 31, 2017, compared with 39.59 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 2.86 as on Mar. 31, 2017, when compared with the last year. 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]
