Advanced Disposal Services, Inc. (ADS) saw its loss narrow to $7 million, or $0.08 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $14.30 million, or $0.22 a share. On an adjusted basis, net profit for the quarter stood at $3.70 million, or $0.04 a share compared with a net loss of $1.30 million, or $0.02 a share in the last year period. Revenue during the quarter grew 4.07 percent to $347.40 million from $333.80 million in the previous year period. Total expenses were 96.75 percent of quarterly revenues, up from 96.11 percent for the same period last year. That has resulted in a contraction of 64 basis points in operating margin to 3.25 percent.
Operating income for the quarter was $11.30 million, compared with $13 million in the previous year period.
Adjusted EBITDA for the quarter was almost stable at $87.20 million, when compared with the prior year period. At the same time, adjusted EBITDA margin contracted 90 basis points in the quarter to 25.10 percent from 26 percent in the last year period.
"Advanced Disposal remains committed to generating improving cash flow for our shareholders over time," said Richard Burke, chief executive officer. "We are pleased to see the significant year-over-year improvement in cash from operations as we continue to execute on our strategy. We are also excited that we were able to redeploy some of the cash generated during the quarter to enter into a new vertically integrated market by closing on the acquisition of CGS. CGS is an established operation in a secondary market that has developed an excellent reputation and provides us with a new platform to continue to grow our business."
Operating cash flow improves significantly
Advanced Disposal Services, Inc. has generated cash of $95.30 million from operating activities during the quarter, up 76.48 percent or $41.30 million, when compared with the last year period. The company has spent $109.20 million cash to meet investing activities during the quarter as against cash outgo of $39.70 million in the last year period. It has incurred capital expenditure of $41.30 million on net basis during the quarter, up 8.40 percent or $3.20 million from year ago period.
Cash flow from financing activities was $14.40 million for the quarter as against cash outgo of $14.40 million in the last year period.
Cash and cash equivalents stood at $1.70 million as on Mar. 31, 2017, up 240 percent or $1.20 million from $0.50 million on Mar. 31, 2016.
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