Arch Coal, Inc. (ARCH) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $51.67 million, or $ 2.03 a share in the quarter, against a net loss of $206.70 million, or $9.71 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $64.89 million, or $2.55 a share compared with a net loss of $116.84 million, or $5.49 a share in the last year period. Revenue during the quarter surged 40.38 percent to $600.98 million from $428.11 million in the previous year period. Gross margin for the quarter expanded 1923 basis points over the previous year period to 23.22 percent. Operating margin for the quarter period stood at positive 11.03 percent as compared to a negative 37 percent for the previous year period.
Operating income for the quarter was $66.26 million, compared with an operating loss of $158.41 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $120.50 million compared to negative $1.72 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 20.05 percent for the quarter compared to negative 0.40 percent in the last year period.
“Arch executed a strong performance in the first quarter of 2017, with meaningful expansion in earnings per share and adjusted EBITDAR,” said John W. Eaves, Archs chief executive officer. “Our solid financial results underscore the strategic value of the company’s two complementary lines of business and our highly competitive position in our key operating segments. During the first quarter, we capitalized on resurgent global metallurgical markets while remaining poised to take advantage of improving fundamentals in the thermal coal markets as the year progresses."
Operating cash flow turns positiveArch Coal, Inc. has generated cash of $125.53 million from operating activities during the quarter as against cash outgo of $10.10 million in the last year period. The company has spent $44.07 million cash to meet investing activities during the quarter as against cash outgo of $19.26 million in the last year period.
The company has spent $39.25 million cash to carry out financing activities during the quarter as against cash outgo of $26.03 million in the last year period.
Cash and cash equivalents stood at $347.58 million as on Mar. 31, 2017, down 12.09 percent or $47.82 million from $395.40 million on Mar. 31, 2016.
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