Global Brass and Copper Holdings, Inc. (BRSS) has reported a 43.48 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $3.90 million, or $0.18 a share in the quarter, compared with $6.90 million, or $0.32 a share for the same period last year. On an adjusted basis, earnings per share were at $0.81 for the quarter compared with $0.54 in the same period last year.
Revenue during the quarter dropped 5.06 percent to $349.10 million from $367.70 million in the previous year period. Gross margin for the quarter expanded 337 basis points over the previous year period to 14.95 percent. Total expenses were 91.32 percent of quarterly revenues, down from 93.91 percent for the same period last year. This has led to an improvement of 259 basis points in operating margin to 8.68 percent.
Operating income for the quarter was $30.30 million, compared with $22.40 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $34.60 million compared with $30.60 million in the prior year period. At the same time, adjusted EBITDA margin improved 159 basis points in the quarter to 9.91 percent from 8.32 percent in the last year period.
"As predicted last quarter, the second quarter production outage at Olin Brass pushed some volumes from the second quarter into the third quarter. We also had solid volumes at A.J. Oster, and continued to strengthen our relationships with key customers in our Chase business," said John Wasz, GBC's President and Chief Executive Officer.
Operating cash flow declines
Global Brass and Copper Holdings, Inc. has generated cash of $49.10 million from operating activities during the nine month period, down 18.17 percent or $10.90 million, when compared with the last year period.
The company has spent $22.80 million cash to meet investing activities during the nine month period as against cash outgo of $4.90 million in the last year period.
The company has spent $54.30 million cash to carry out financing activities during the nine month period as against cash outgo of $26.30 million in the last year period.
Cash and cash equivalents stood at $55.40 million as on Sep. 30, 2016, down 24.63 percent or $18.10 million from $73.50 million on Sep. 30, 2015.
Working capital declines
Global Brass and Copper Holdings, Inc. has witnessed a decline in the working capital over the last year. It stood at $268.40 million as at Sep. 30, 2016, down 15.38 percent or $48.80 million from $317.20 million on Sep. 30, 2015. Current ratio was at 3.18 as on Sep. 30, 2016, up from 3.01 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 39 days for the quarter from 68 days for the last year period. Days sales outstanding went up to 42 days for the quarter compared with 40 days for the same period last year.
Days inventory outstanding has decreased to 26 days for the quarter compared with 56 days for the previous year period. At the same time, days payable outstanding was almost stable at 28 days for the quarter, when compared with the previous year period.
Debt comes down
Global Brass and Copper Holdings, Inc. has recorded a decline in total debt over the last one year. It stood at $316.80 million as on Sep. 30, 2016, down 11.75 percent or $42.20 million from $359 million on Sep. 30, 2015. Total debt was 56.58 percent of total assets as on Sep. 30, 2016, compared with 59.97 percent on Sep. 30, 2015. Debt to equity ratio was at 3.64 as on Sep. 30, 2016, down from 6.27 as on Sep. 30, 2015. Interest coverage ratio improved to 5.83 for the quarter from 2.26 for the same period last year.
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