Clearwater Paper Corporation (CLW) has reported 59.26 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $7.52 million, or $0.45 a share in the quarter, compared with $18.45 million, or $1.05 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $10.73 million, or $0.64 a share compared with $19.19 million or $1.09 a share, a year ago.
Revenue during the quarter went up marginally by 0.07 percent to $437.52 million from $437.20 million in the previous year period. Gross margin for the quarter contracted 414 basis points over the previous year period to 11.54 percent. Total expenses were 95.30 percent of quarterly revenues, up from 91.36 percent for the same period last year. That has resulted in a contraction of 394 basis points in operating margin to 4.70 percent.
Operating income for the quarter was $20.56 million, compared with $37.76 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $49.32 million compared with $60.07 million in the prior year period. At the same time, adjusted EBITDA margin contracted 247 basis points in the quarter to 11.27 percent from 13.74 percent in the last year period.
"We achieved solid results in the first quarter of 2017 due to strong demand for both consumer products and paperboard, positive contributions from the Manchester Industries acquisition, and our team's continued smart work and focus" said Linda K. Massman, president and chief executive officer. "This is a significant year for Clearwater Paper as we look forward to completing the final year of our current strategic plan, which includes warehouse automation, the continuous pulp digester in Lewiston, Idaho, and the operational efficiencies that are vital to improving our cost structure. The exciting work on the Shelby, North Carolina plant and warehousing expansion is also underway."
Operating cash flow declinesClearwater Paper Corporation has generated cash of $45.54 million from operating activities during the quarter, down 7.11 percent or $ 3.48 million, when compared with the last year period. The company has spent $41.88 million cash to meet investing activities during the quarter as against cash outgo of $30.70 million in the last year period.
The company has spent $10.66 million cash to carry out financing activities during the quarter as against cash outgo of $21.70 million in the last year period.
Cash and cash equivalents stood at $16 million as on Mar. 31, 2017, up 617.91 percent or $13.77 million from $2.23 million on Mar. 31, 2016.
Working capital drops significantly
Clearwater Paper Corporation has witnessed a decline in the working capital over the last year. It stood at $73.16 million as at Mar. 31, 2017, down 60.76 percent or $113.30 million from $186.46 million on Mar. 31, 2016. Current ratio was at 1.21 as on Mar. 31, 2017, down from 1.90 on Mar. 31, 2016.
Days sales outstanding were almost stable at 30 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 28 days for the quarter compared with 62 days for the previous year period.
Debt moves upClearwater Paper Corporation has witnessed an increase in total debt over the last one year. It stood at $699.95 million as on Mar. 31, 2017, up 21.69 percent or $124.76 million from $575.18 million on Mar. 31, 2016. Total debt was 42.04 percent of total assets as on Mar. 31, 2017, compared with 38.37 percent on Mar. 31, 2016. Debt to equity ratio was at 1.48 as on Mar. 31, 2017, up from 1.23 as on Mar. 31, 2016. 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: [email protected]
