Advanced Emissions Solutions, Inc (ADES) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $9.61 million, or $ 0.43 a share in the quarter, against a net loss of $8.65 million, or $0.40 a share in the last year period. Revenue during the quarter grew 21.92 percent to $15.71 million from $12.88 million in the previous year period. Gross margin for the quarter contracted 253 basis points over the previous year period to 15.90 percent. Operating margin for the quarter stood at negative 18.54 percent as compared to a negative 77.52 percent for the previous year period.
Operating loss for the quarter was $2.91 million, compared with an operating loss of $9.99 million in the previous year period.
L. Heath Sampson, President and Chief executive officer of ADES commented, “The third quarter results reflect a much improved cost structure and our focus on maximizing cash received in the form of Refined Coal distributions, with the end result being realized as $9.6 million in consolidated net income. Furthermore, we continue to execute against our cost reduction initiatives and are tracking successfully towards our goal of lowering our go forward operating cost basis to between $12 to $14 million.”
Operating cash flow remains negative
Advanced Emissions Solutions, Inc has spent $12.23 million cash to meet operating activities during the nine month period as against cash outgo of $13.64 million in the last year period. Cash flow from investing activities was $25.84 million for the nine month period as against cash outgo of $1.51 million in the last year period.
The company has spent $15.27 million cash to carry out financing activities during the nine month period as against cash outgo of $1.44 million in the last year period.
Cash and cash equivalents stood at $7.60 million as on Sep. 30, 2016, down 11.44 percent or $0.98 million from $8.58 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Advanced Emissions Solutions, Inc was negative $1.37 million on Sep. 30, 2016 compared with negative $21.22 million on Sep. 30, 2015. Current ratio was at 0.95 as on Sep. 30, 2016, up from 0.55 on Sep. 30, 2015.
Days sales outstanding went down to 71 days for the quarter compared with 80 days for the same period last year.
At the same time, days payable outstanding went down to 44 days for the quarter from 84 for the same period last year.
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