ION Geophysical Corporation (IO) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $1.70 million, or $ 0.14 a share in the quarter, against a net loss of $20.38 million, or $1.86 a share in the last year period. Revenue during the quarter grew 17.92 percent to $78.62 million from $66.67 million in the previous year period. Gross margin for the quarter expanded 2374 basis points over the previous year period to 40.40 percent. Operating margin for the quarter period stood at positive 15.09 percent as compared to a negative 19.31 percent for the previous year period.
Operating income for the quarter was $11.86 million, compared with an operating loss of $12.87 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $24.36 million compared with $7.52 million in the prior year period. At the same time, adjusted EBITDA margin improved 1971 basis points in the quarter to 30.99 percent from 11.27 percent in the last year period.
Brian Hanson, ION’s president and chief executive officer, commented, "As we stated in our second quarter earnings call, we expected higher revenues and positive cash generation in the back half of 2016, both of which are reflected in our third quarter results. Our revenues for the third quarter exceeded our total revenues for the first half of the year, driven in part by our Ocean Bottom Services (OBS) crew going back to work and by a sizable increase in multi-client data library sales spread across our geographically diverse portfolio."
Operating cash flow turns positive
ION Geophysical Corporation has generated cash of $3.23 million from operating activities during the nine month period as against cash outgo of $36 million in the last year period. The company has spent $12.17 million cash to meet investing activities during the nine month period as against cash outgo of $44.49 million in the last year period.
The company has spent $14.32 million cash to carry out financing activities during the nine month period as against cash outgo of $5.48 million in the last year period.
Cash and cash equivalents stood at $62.54 million as on Sep. 30, 2016, down 29.13 percent or $25.70 million from $88.24 million on Sep. 30, 2015.
Working capital drops significantly
ION Geophysical Corporation has witnessed a decline in the working capital over the last year. It stood at $53.37 million as at Sep. 30, 2016, down 33.40 percent or $26.77 million from $80.14 million on Sep. 30, 2015. Current ratio was at 1.48 as on Sep. 30, 2016, down from 1.75 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 34 days for the quarter from 79 days for the last year period. Days sales outstanding went down to 57 days for the quarter compared with 65 days for the same period last year.
Days inventory outstanding has decreased to 33 days for the quarter compared with 58 days for the previous year period. At the same time, days payable outstanding went up to 56 days for the quarter from 44 for the same period last year.
Debt comes down
ION Geophysical Corporation has recorded a decline in total debt over the last one year. It stood at $163.52 million as on Sep. 30, 2016, down 12.21 percent or $22.75 million from $186.28 million on Sep. 30, 2015. Total debt was 45.46 percent of total assets as on Sep. 30, 2016, compared with 41.65 percent on Sep. 30, 2015. Debt to equity ratio was at 2.70 as on Sep. 30, 2016, up from 1.56 as on Sep. 30, 2015. 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
