Royal Gold, Inc. (RGLD) has reported an 85.67 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $28.06 million, or $0.43 a share in the quarter, compared with $15.11 million, or $0.23 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $23.34 million, or $0.36 a share compared with $15.11 million or $0.23 a share, a year ago. Revenue during the quarter grew 9.01 percent to $106.96 million from $98.12 million in the previous year period. Gross margin for the quarter expanded 197 basis points over the previous year period to 78.96 percent. Total expenses were 67.76 percent of quarterly revenues, down from 72.31 percent for the same period last year. This has led to an improvement of 454 basis points in operating margin to 32.24 percent.
Operating income for the quarter was $34.48 million, compared with $27.17 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $78.39 million compared with $70 million in the prior year period. At the same time, adjusted EBITDA margin improved 195 basis points in the quarter to 73.29 percent from 71.34 percent in the last year period.
"In the second quarter, a higher gold price combined with strong portfolio contributions to yield our highest operating cash flow in Company history," commented Tony Jensen, president and chief executive officer. "Our investment commitments at Rainy River and Golden Star are now complete, and Royal Gold has no other required funding commitments. Our growth profile is among the most compelling in the gold streaming business, and it is fully bought and paid for."
Operating cash flow improves significantly
Royal Gold, Inc. has generated cash of $124.80 million from operating activities during the first half, up 128.58 percent or $70.20 million, when compared with the last year period. The company has spent $191.04 million cash to meet investing activities during the first six months as against cash outgo of $1,000.26 million in the last year period.
Cash flow from financing activities was $33.60 million for the first six months, down 89.51 percent or $286.81 million, when compared with the last year period.
Cash and cash equivalents stood at $83.99 million as on Dec. 31, 2016, down 28.58 percent or $33.61 million from $117.60 million on Dec. 31, 2015.
Working capital declines
Royal Gold, Inc. has witnessed a decline in the working capital over the last year. It stood at $113.86 million as at Dec. 31, 2016, down 20.01 percent or $28.48 million from $142.34 million on Dec. 31, 2015. Current ratio was at 6.10 as on Dec. 31, 2016, down from 7.94 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 33 days for the quarter from 29 days for the last year period. Days sales outstanding were almost stable at 34 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 21 days for the quarter compared with 17 days for the previous year period. At the same time, days payable outstanding was almost stable at 22 days for the quarter, when compared with the previous year period.
Debt remains almost stable
Total debt of Royal Gold, Inc. remained almost stable for the quarter at $677.43 million, when compared with the last year period. Long-term debt of Royal Gold remained almost stable for the quarter at $677.43 million, when compared with the last year period. Total debt was 21.44 percent of total assets as on Dec. 31, 2016, compared with 21.02 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.29 as on Dec. 31, 2016, when compared with the last year.
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