Univar Inc. (UNVR) saw its loss widen to $59.20 million, or $0.43 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $2.90 million, or $0.02 a share.
Revenue during the quarter dropped 7.82 percent to $1,812.50 million from $1,966.30 million in the previous year period. Gross margin for the quarter expanded 145 basis points over the previous year period to 22.80 percent. Total expenses were 99.84 percent of quarterly revenues, up from 98.67 percent for the same period last year. That has resulted in a contraction of 117 basis points in operating margin to 0.16 percent.
Operating income for the quarter was $2.90 million, compared with $26.10 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $134.50 million compared with $129.60 million in the prior year period. At the same time, adjusted EBITDA margin improved 83 basis points in the quarter to 7.42 percent from 6.59 percent in the last year period.
"In the second half of 2016, we began the process of changing our culture and mindset to improve our value delivery to customers, drive growth for our supplier partners, and create value for our shareholders. We are seeing early signs our transformation is beginning to take hold," said Steve Newlin, chairman, president and chief executive officer. "Culture change is some of the hardest work within an organization and can take time to reach its full potential. However, the rewards are substantial, and we are building a foundation that consistently delivers sustainable superior earnings growth."
Operating cash flow improves significantly
Univar Inc. has generated cash of $449.60 million from operating activities during the year, up 26.29 percent or $93.60 million, when compared with the last year. The company has spent $136 million cash to meet investing activities during the year as against cash outgo of $294.40 million in the last year. It has incurred net capital expenditure of $80.70 million on net basis during the year, down 40.44 percent or $54.80 million from year ago.
The company has spent $166.10 million cash to carry out financing activities during the year as against cash outgo of $19.80 million in the last year period.
Cash and cash equivalents stood at $336.40 million as on Dec. 31, 2016, up 78.84 percent or $148.30 million from $188.10 million on Dec. 31, 2015.
Working capital declines
Univar Inc. has witnessed a decline in the working capital over the last year. It stood at $838.60 million as at Dec. 31, 2016, down 7.11 percent or $64.20 million from $902.80 million on Dec. 31, 2015. Current ratio was at 1.63 as on Dec. 31, 2016, down from 1.70 on Dec. 31, 2015.
Debt comes down
Univar Inc. has recorded a decline in total debt over the last one year. It stood at $2,979.30 million as on Dec. 31, 2016, down 5.44 percent or $171.50 million from $3,150.80 million on Dec. 31, 2015. Total debt was 55.28 percent of total assets as on Dec. 31, 2016, compared with 56.14 percent on Dec. 31, 2015. Debt to equity ratio was at 3.68 as on Dec. 31, 2016, down from 3.86 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 0.07 for the quarter from 0.63 for the same period last year.
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