US Ecology, Inc. (ECOL) has reported a marginal fall of 0.27 percent in profit for the quarter ended Dec. 31, 2016. The company has earned $7.68 million, or $0.35 a share, compared with $7.70 million or $0.35 a share, a year ago. On the other hand, adjusted net income for the quarter stood at $8.04 million, or $0.36 a share compared with $7.80 million or $0.36 a share, a year ago. Revenue during the quarter dropped 15.26 percent to $117.17 million from $138.27 million in the previous year period. Gross margin for the quarter contracted 110 basis points over the previous year period to 30.83 percent. Total expenses were 86.14 percent of quarterly revenues, up from 83.98 percent for the same period last year. That has resulted in a contraction of 216 basis points in operating margin to 13.86 percent.
Operating income for the quarter was $16.24 million, compared with $22.15 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $27.27 million compared with $33.04 million in the prior year period. At the same time, adjusted EBITDA margin contracted 62 basis points in the quarter to 23.27 percent from 23.90 percent in the last year period.
"We saw another quarter of sluggishness in the industrial sector, including lower spending and continued project deferment, which resulted in Pro Forma adjusted EBITDA for 2016 at the low end of our guidance range," commented Jeff Feeler, Chairman and Chief Executive Officer. "Winter weather conditions, which affected shipping and production schedules, combined with lower December industrial waste volumes contributed to a 4% decline in Base Business in our Environmental Services segment in the fourth quarter compared to the fourth quarter of 2015.
US Ecology, Inc. expects revenue to be in the range of $495 million to $533 million for financial year 2017. For fiscal year 2017, Us Ecology forecasts net income to be in the range of $36.90 million to $42 million. For financial year 2017, the company projects diluted earnings per share to be in the range of $1.69 to $1.93.
Operating cash flow improves marginally
US Ecology, Inc. has generated cash of $74.63 million from operating activities during the year, up 4.30 percent or $3.08 million, when compared with the last year. The company has spent $42 million cash to meet investing activities during the year as against cash inflow of $20.29 million in the last year. It has incurred net capital expenditure of $34.70 million on net basis during the year, down 9.67 percent or $3.72 million from year ago.
The company has spent $31.59 million cash to carry out financing activities during the year as against cash outgo of $108.36 million in the last year period.
Cash and cash equivalents stood at $7.02 million as on Dec. 31, 2016, up 17.13 percent or $1.03 million from $5.99 million on Dec. 31, 2015.
Working capital decreases marginally
US Ecology, Inc. has witnessed a decline in the working capital over the last year. It stood at $52.77 million as at Dec. 31, 2016, down 3.20 percent or $1.74 million from $54.52 million on Dec. 31, 2015. Current ratio was at 1.84 as on Dec. 31, 2016, up from 1.80 on Dec. 31, 2015.
Days sales outstanding went up to 38 days for the quarter compared with 35 days for the same period last year.
Debt comes down marginally
US Ecology, Inc. has recorded a decline in total debt over the last one year. It stood at $279.54 million as on Dec. 31, 2016, down 4.83 percent or $14.20 million from $293.74 million on Dec. 31, 2015. Total debt was 36 percent of total assets as on Dec. 31, 2016, compared with 38.05 percent on Dec. 31, 2015. Debt to equity ratio was at 1 as on Dec. 31, 2016, down from 1.15 as on Dec. 31, 2015. Interest coverage ratio improved to 3.90 for the quarter from 3.09 for the same period last year.
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