Innophos Holdings (IPHS) has reported 14.94 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $10.92 million, or $0.55 a share in the quarter, compared with $12.84 million, or $0.66 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $11.60 million, or $0.59 a share compared with $12.79 million or $0.66 a share, a year ago.

Revenue during the quarter dropped 12.49 percent to $165.94 million from $189.63 million in the previous year period. Gross margin for the quarter expanded 55 basis points over the previous year period to 22.02 percent. Total expenses were 90.11 percent of quarterly revenues, up from 88.67 percent for the same period last year. That has resulted in a contraction of 144 basis points in operating margin to 9.89 percent.

Operating income for the quarter was $16.40 million, compared with $21.48 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $27.70 million compared with $31.26 million in the prior year period. At the same time, adjusted EBITDA margin improved 21 basis points in the quarter to 16.69 percent from 16.48 percent in the last year period.

"We were pleased with our first quarter performance compared to the preliminary financial results range we provided at our Investor Day," said Kim Ann Mink, Ph.D., chairman, president and chief executive officer. "This included sales in line with expectations, adjusted EBITDA at the high end of the range, and net income and adjusted diluted earnings per share higher than initially estimated due to a recent change in tax treatment for stock compensation. By remaining focused on cost savings from performance improvement initiatives and leveraging improved product mix, we drove margin growth sequentially and year-over-year despite market headwinds.

The company has spent $7.52 million cash to meet investing activities during the quarter as against cash outgo of $8.02 million in the last year period.

The company has spent $5.71 million cash to carry out financing activities during the quarter as against cash inflow of $8.42 million in the last year period.

Cash and cash equivalents stood at $29.80 million as on Mar. 31, 2017, up 93.08 percent or $14.37 million from $15.43 million on Mar. 31, 2016.

Working capital declines
Innophos Holdings has witnessed a decline in the working capital over the last year. It stood at $194.28 million as at Mar. 31, 2017, down 8.13 percent or $17.19 million from $211.48 million on Mar. 31, 2016. Current ratio was at 3.27 as on Mar. 31, 2017, up from 3.26 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 64 days for the quarter from 120 days for the last year period. Days sales outstanding went up to 45 days for the quarter compared with 41 days for the same period last year.

Days inventory outstanding has decreased to 48 days for the quarter compared with 104 days for the previous year period. At the same time, days payable outstanding went up to 29 days for the quarter from 25 for the same period last year.