HD SUPPLY, INC has reported a 76 percent plunge in profit for the quarter ended Oct. 30, 2016. The company has earned $60 million, or $0.30 a share in the quarter, compared with $250 million, or $1.24 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $168 million, or $0.83 a share compared with $131 million or $0.65 a share, a year ago. Revenue during the quarter grew 3.40 percent to $2,008 million from $1,942 million in the previous year period. Gross margin for the quarter expanded 65 basis points over the previous year period to 34.01 percent. Total expenses were 88.50 percent of quarterly revenues, up from 88.31 percent for the same period last year. That has resulted in a contraction of 18 basis points in operating margin to 11.50 percent.
Operating income for the quarter was $231 million, compared with $227 million in the previous year period.
However, the adjusted EBITDA for the quarter was almost stable at $264 million, when compared with the prior year period. At the same time, adjusted EBITDA margin contracted 40 basis points in the quarter to 13.15 percent from 13.54 percent in the last year period.
"We delivered growth and solid cash conversion in the third quarter and are focused on building momentum for the 2017 selling season," stated Joe DeAngelo, chairman and chief executive officer of HD Supply.
For the fourth-quarter 2016, HD SUPPLY, INC projects revenue to be in the range of $1,605 million to $1,665 million. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.38 to $0.46.
Operating cash flow improves significantly
HD SUPPLY, INC has generated cash of $304 million from operating activities during the nine month period, up 75.72 percent or $131 million, when compared with the last year period. The company has spent $29 million cash to meet investing activities during the nine month period as against cash inflow of $751 million in the last year period It has incurred net capital expenditure of $57 million on net basis during the nine month period, down 3.39 percent or $2 million from year ago period.
The company has spent $399 million cash to carry out financing activities during the nine month period as against cash outgo of $930 million in the last year period.
Cash and cash equivalents stood at $146 million as on Oct. 30, 2016, up 100 percent or $73 million from $73 million on Nov. 01, 2015.
Working capital increases
HD SUPPLY, INC has recorded an increase in the working capital over the last year. It stood at $1,182 million as at Oct. 30, 2016, up 7.55 percent or $83 million from $1,099 million on Nov. 01, 2015. Current ratio was at 2.19 as on Oct. 30, 2016, up from 2.13 on Nov. 01, 2015.
Cash conversion cycle (CCC) has decreased to 33 days for the quarter from 65 days for the last year period. Days sales outstanding went down to 50 days for the quarter compared with 51 days for the same period last year.
Days inventory outstanding has decreased to 30 days for the quarter compared with 62 days for the previous year period. At the same time, days payable outstanding was almost stable at 48 days for the quarter, when compared with the previous year period.
Debt comes down
HD SUPPLY, INC has recorded a decline in total debt over the last one year. It stood at $4,097 million as on Oct. 30, 2016, down 6.76 percent or $297 million from $4,394 million on Nov. 01, 2015. Total debt was 67.31 percent of total assets as on Oct. 30, 2016, compared with 80.15 percent on Nov. 01, 2015. Interest coverage ratio improved to 3.55 for the quarter from 2.29 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
