Calgon Carbon Corporation (CCC) has reported 85.80 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.78 million, or $0.02 a share in the quarter, compared with $5.46 million, or $0.11 a share for the same period last year.
Revenue during the quarter grew 18.72 percent to $142.70 million from $120.20 million in the previous year period. Gross margin for the quarter contracted 397 basis points over the previous year period to 30.75 percent. Total expenses were 95.87 percent of quarterly revenues, up from 92.96 percent for the same period last year. That has resulted in a contraction of 291 basis points in operating margin to 4.13 percent.
Operating income for the quarter was $5.90 million, compared with $8.46 million in the previous year period.
The company's first quarter results, Calgon Carbon's chairman, president, and chief executive officer Randy Dearth said, "Excluding expected impacts of acquisition integration and subsidiary reorganization costs, we’re off to a solid start to the new year. Through the addition of the New Business and the diversity of our exposure to varied end markets and geographic regions we achieved our first quarter revenue growth target of 18% to 20%."
Working capital declines
Calgon Carbon Corporation has witnessed a decline in the working capital over the last year. It stood at $192.42 million as at Mar. 31, 2017, down 15.29 percent or $34.72 million from $227.14 million on Mar. 31, 2016. Current ratio was at 2.84 as on Mar. 31, 2017, down from 3.87 on Mar. 31, 2016. Days sales outstanding went down to 67 days for the quarter compared with 75 days for the same period last year.
Days inventory outstanding has decreased to 61 days for the quarter compared with 133 days for the previous year period.
Debt increases substantially
Calgon Carbon Corporation has witnessed an increase in total debt over the last one year. It stood at $235.94 million as on Mar. 31, 2017, up 109.27 percent or $123.20 million from $112.75 million on Mar. 31, 2016. Total debt was 29.79 percent of total assets as on Mar. 31, 2017, compared with 17.23 percent on Mar. 31, 2016. Debt to equity ratio was at 0.62 as on Mar. 31, 2017, up from 0.29 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 3.91 for the quarter from 25.88 for the same period last year.
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