Veritiv Corporation (VRTV) has reported 58.42 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $4.20 million, or $0.26 a share in the quarter, compared with $10.10 million, or $0.63 a share for the same period last year. Revenue during the quarter dropped 3.69 percent to $2,119.40 million from $2,200.70 million in the previous year period. Gross margin for the quarter contracted 12 basis points over the previous year period to 17.89 percent. Total expenses were 99.37 percent of quarterly revenues, up from 98.95 percent for the same period last year. That has resulted in a contraction of 42 basis points in operating margin to 0.63 percent.
Operating income for the quarter was $13.30 million, compared with $23 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $50.10 million compared with $52.30 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1 basis points in the quarter to 2.36 percent from 2.38 percent in the last year period.
"Our full year 2016 results were in-line with expectations, despite a fourth quarter that was, as anticipated, challenging," said Mary Laschinger, chairman and chief executive officer of Veritiv Corporation. "After a few successful years of integration, we look forward to the near completion of that work in 2017, which will set the stage for further financial improvement in 2018 and beyond."
Operating cash flow improvesVeritiv Corporation has generated cash of $140.20 million from operating activities during the year, up 24.07 percent or $27.20 million, when compared with the last year. The company has spent $34.40 million cash to meet investing activities during the year as against cash outgo of $44.10 million in the last year. It has incurred net capital expenditure of $34.40 million on net basis during the year, down 22 percent or $9.70 million from year ago.
The company has spent $89.90 million cash to carry out financing activities during the year as against cash outgo of $70.40 million in the last year period.
Cash and cash equivalents stood at $69.60 million as on Dec. 31, 2016, up 27.94 percent or $15.20 million from $54.40 million on Dec. 31, 2015.
Working capital decreases marginally
Veritiv Corporation has witnessed a decline in the working capital over the last year. It stood at $1,080.80 million as at Dec. 31, 2016, down 2.72 percent or $30.20 million from $1,111 million on Dec. 31, 2015. Current ratio was at 2.25 as on Dec. 31, 2016, down from 2.36 on Dec. 31, 2015.
Debt comes down
Veritiv Corporation has recorded a decline in total debt over the last one year. It stood at $752.10 million as on Dec. 31, 2016, down 6.37 percent or $51.20 million from $803.30 million on Dec. 31, 2015. Total debt was 30.28 percent of total assets as on Dec. 31, 2016, compared with 32.43 percent on Dec. 31, 2015. Debt to equity ratio was at 1.39 as on Dec. 31, 2016, down from 1.52 as on Dec. 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]
