Darling Ingredients Inc (DAR) swung to a net profit for the quarter ended Oct. 01, 2016. The company has made a net profit of $28.69 million, or $ 0.17 a share in the quarter, against a net loss of $9.09 million, or $0.06 a share in the last year period. Revenue during the quarter went up marginally by 0.01 percent to $853.86 million from $853.76 million in the previous year period. Gross margin for the quarter expanded 3 basis points over the previous year period to 21.40 percent. Total expenses were 95.84 percent of quarterly revenues, up from 95.45 percent for the same period last year. That has resulted in a contraction of 38 basis points in operating margin to 4.16 percent.
Operating income for the quarter was $35.53 million, compared with $38.81 million in the previous year period.
However, the adjusted EBITDA for the quarter was almost stable at $106.18 million, when compared with the prior year period. At the same time, adjusted EBITDA margin was almost stable in the quarter to 12.44 percent when compared with the last year period.
Randall C. Stuewe, chairman and chief executive officer of Darling Ingredients Inc., said, "We continue to execute against our strategic plan to de-lever and grow while managing through considerable volatility in many of our markets."
Operating cash flow declines
Darling Ingredients Inc has generated cash of $280.56 million from operating activities during the nine month period, down 5.42 percent or $16.09 million, when compared with the last year period. The company has spent $170.71 million cash to meet investing activities during the nine month period as against cash outgo of $162.17 million in the last year period. It has incurred net capital expenditure of $163.73 million on net basis during the nine month period, up 0.62 percent or $1 million from year ago period.
The company has spent $117.21 million cash to carry out financing activities during the nine month period as against cash outgo of $94.08 million in the last year period.
Cash and cash equivalents stood at $148.58 million as on Oct. 01, 2016, down 0.20 percent or $0.30 million from $148.89 million on Oct. 03, 2015.
Working capital declines
Darling Ingredients Inc has witnessed a decline in the working capital over the last year. It stood at $503.34 million as at Oct. 01, 2016, down 8.53 percent or $46.93 million from $550.27 million on Oct. 03, 2015. Current ratio was at 2.10 as on Oct. 01, 2016, down from 2.21 on Oct. 03, 2015.
Cash conversion cycle (CCC) has decreased to 44 days for the quarter from 73 days for the last year period. Days sales outstanding were almost stable at 42 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 24 days for the quarter compared with 52 days for the previous year period. At the same time, days payable outstanding was almost stable at 23 days for the quarter, when compared with the previous year period.
Debt comes down
Darling Ingredients Inc has recorded a decline in total debt over the last one year. It stood at $1,845.53 million as on Oct. 01, 2016, down 8.83 percent or $178.85 million from $2,024.38 million on Oct. 03, 2015. Total debt was 38.31 percent of total assets as on Oct. 01, 2016, compared with 41.75 percent on Oct. 03, 2015. Debt to equity ratio was at 0.88 as on Oct. 01, 2016, down from 1.06 as on Oct. 03, 2015. Interest coverage ratio deteriorated to 1.49 for the quarter from 1.56 for the same period last year. 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
