Global Brass and Copper Holdings, Inc. (BRSS) has reported 39.34 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $17 million, or $0.77 a share in the quarter, compared with $12.20 million, or $0.57 a share for the same period last year. On an adjusted basis, earnings per share were at $0.71 for the quarter compared with $0.65 in the same period last year.
Revenue during the quarter grew 19.58 percent to $393.30 million from $328.90 million in the previous year period. Gross margin for the quarter contracted 236 basis points over the previous year period to 12.69 percent. Total expenses were 93.14 percent of quarterly revenues, up from 90.94 percent for the same period last year. That has resulted in a contraction of 220 basis points in operating margin to 6.86 percent.
Operating income for the quarter was $27 million, compared with $29.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $33.50 million compared with $33.70 million in the prior year period. At the same time, adjusted EBITDA margin contracted 173 basis points in the quarter to 8.52 percent from 10.25 percent in the last year period.
"For the quarter, we experienced growth in both volumes and adjusted diluted earnings per share. We advanced several key strategic initiatives, including launching new IT systems at Olin Brass and A.J. Oster. Our foundation continues to strengthen and our business remains steady," said John Wasz, GBC's president and chief executive officer.
Operating cash flow turns negative
Global Brass and Copper Holdings, Inc. has spent $7.10 million cash to meet operating activities during the quarter as against cash inflow of $12.10 million in the last year period.
The company has spent $7.80 million cash to meet investing activities during the quarter as against cash outgo of $7.60 million in the last year period.
The company has spent $6.10 million cash to carry out financing activities during the quarter as against cash outgo of $39.20 million in the last year period.
Cash and cash equivalents stood at $66.90 million as on Mar. 31, 2017, up 37.37 percent or $18.20 million from $48.70 million on Mar. 31, 2016.
Working capital increases
Global Brass and Copper Holdings, Inc. has recorded an increase in the working capital over the last year. It stood at $283.30 million as at Mar. 31, 2017, up 14.60 percent or $36.10 million from $247.20 million on Mar. 31, 2016. Current ratio was at 2.70 as on Mar. 31, 2017, down from 3.02 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 32 days for the quarter from 69 days for the last year period. Days sales outstanding were almost stable at 37 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 19 days for the quarter compared with 55 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 moves up marginally
Global Brass and Copper Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $315 million as on Mar. 31, 2017, up 2.14 percent or $6.60 million from $308.40 million on Mar. 31, 2016. Total debt was 50.55 percent of total assets as on Mar. 31, 2017, compared with 58.45 percent on Mar. 31, 2016. Debt to equity ratio was at 2.85 as on Mar. 31, 2017, down from 4.24 as on Mar. 31, 2016. Interest coverage ratio improved to 5.74 for the quarter from 3.55 for the same period last year.
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