Cf Industries Holdings (CF) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $30 million, or $ 0.13 a share in the quarter, against a net profit of $90 million, or $0.39 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $30 million, or $0.13 a share compared with $127 million or $0.54 a share, a year ago. Revenue during the quarter dropped 26.72 percent to $680 million from $928 million in the previous year period. Gross margin for the quarter contracted 1749 basis points over the previous year period to 0.29 percent. Operating margin for the quarter stood at negative 14.85 percent as compared to a positive 6.36 percent for the previous year period.
Operating loss for the quarter was $101 million, compared with an operating income of $59 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $83 million compared with $352 million in the prior year period. At the same time, adjusted EBITDA margin contracted 2573 basis points in the quarter to 12.21 percent from 37.93 percent in the last year period.
“CF remains well-positioned with enduring structural advantages despite the challenging market environment," said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “The versatility of our unmatched production and distribution system allows us to meet evolving customer needs, and our imminent capacity increase continues to support our cash generation capability. With these elements in place, CF remains the best-positioned company to benefit from recovery in the sector.”
Operating cash flow drops significantly
Cf Industries Holdings has generated cash of $591 million from operating activities during the nine month period, down 44.97 percent or $483 million, when compared with the last year period. The company has spent $1,791 million cash to meet investing activities during the nine month period as against cash outgo of $2,299 million in the last year period. It has incurred net capital expenditure of $1,811 million on net basis during the nine month period, up 1.63 percent or $29 million from year ago period.
Cash flow from financing activities was $2,469 million for the nine month period, up 1,279.33 percent or $2,290 million, when compared with the last year period.
Cash and cash equivalents stood at $1,554 million as on Sep. 30, 2016, up 64.79 percent or $611 million from $943 million on Sep. 30, 2015.
Working capital increases sharply
Cf Industries Holdings has recorded an increase in the working capital over the last year. It stood at $1,965 million as at Sep. 30, 2016, up 300.53 percent or $1,474.40 million from $490.60 million on Sep. 30, 2015. Current ratio was at 3.03 as on Sep. 30, 2016, up from 1.39 on Sep. 30, 2015.
Days sales outstanding went up to 27 days for the quarter compared with 22 days for the same period last year.
Days inventory outstanding has decreased to 21 days for the quarter compared with 32 days for the previous year period.
Debt remains almost stable
Cf Industries Holdings has recorded a decline in total debt over the last one year. It stood at $5,540 million as on Sep. 30, 2016, down 0.94 percent or $52.60 million from $5,592.60 million on Sep. 30, 2015. Cf Industries Holdings has recorded a decline in long-term debt over the last one year. It stood at $5,540 million as on Sep. 30, 2016, down 0.94 percent or $52.60 million from $5,592.60 million on Sep. 30, 2015. Total debt was 35.44 percent of total assets as on Sep. 30, 2016, compared with 43.46 percent on Sep. 30, 2015. Debt to equity ratio was at 0.79 as on Sep. 30, 2016, down from 1.25 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
