Axalta Coating Systems Ltd. (AXTA) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $10.70 million, or $ 0.04 a share in the quarter, against a net profit of $35.10 million, or $0.15 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $77.50 million, or $0.32 a share compared with $64.20 million or $0.27 a share, a year ago.

Revenue during the quarter went up marginally by 2.39 percent to $1,029.10 million from $1,005.10 million in the previous year period. Gross margin for the quarter expanded 128 basis points over the previous year period to 38.74 percent. Total expenses were 88.32 percent of quarterly revenues, up from 87.67 percent for the same period last year. That has resulted in a contraction of 65 basis points in operating margin to 11.68 percent.

Operating income for the quarter was $120.20 million, compared with $123.90 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $233.20 million compared with $216.90 million in the prior year period. At the same time, adjusted EBITDA margin improved 108 basis points in the quarter to 22.66 percent from 21.58 percent in the last year period.

"Third quarter results demonstrated strong top line and Adjusted EBITDA performance thanks to ongoing base business development, recent acquisitions, and strong operating profitability, against a continued challenging macroeconomic backdrop. We continued to make good progress towards both our full year and longer term objectives of achieving consistent growth as well as improved productivity" said Charles W. Shaver, Axalta's chairman and chief executive officer. "Our capital structure was also significantly improved this quarter with two successful debt refinancings and a subsequent prepayment in October. Rounding out the quarter, we closed our largest acquisition to date and launched several notable new products which are expected to contribute to our planned growth."

The company has spent $205.10 million cash to meet investing activities during the nine month period as against cash outgo of $111.10 million in the last year period.

The company has spent $65.30 million cash to carry out financing activities during the nine month period as against cash inflow of $30.10 million in the last year period.

Cash and cash equivalents stood at $528.30 million as on Sep. 30, 2016, up 28.35 percent or $116.70 million from $411.60 million on Sep. 30, 2015.
 

Working capital increases
Axalta Coating Systems Ltd. has recorded an increase in the working capital over the last year. It stood at $1,156.50 million as at Sep. 30, 2016, up 6.56 percent or $71.20 million from $1,085.30 million on Sep. 30, 2015. Current ratio was at 2.26 as on Sep. 30, 2016, down from 2.31 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 51 days for the quarter from 93 days for the last year period. Days sales outstanding were almost stable at 78 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 40 days for the quarter compared with 80 days for the previous year period. At the same time, days payable outstanding went up to 67 days for the quarter from 65 for the same period last year.