Koppers Holdings Inc (KOP) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $4.40 million, or $ 0.20 a share in the quarter, against a net loss of $1.30 million, or $0.06 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $14.80 million, or $0.68 a share compared with $5.90 million or $0.28 a share, a year ago. Revenue during the quarter went down marginally by 0.06 percent to $346.60 million from $346.80 million in the previous year period. Gross margin for the quarter expanded 376 basis points over the previous year period to 20.57 percent. Total expenses were 92.04 percent of quarterly revenues, down from 97.75 percent for the same period last year. This has led to an improvement of 571 basis points in operating margin to 7.96 percent.
Operating income for the quarter was $27.60 million, compared with $7.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $41.80 million compared with $33.20 million in the prior year period. At the same time, adjusted EBITDA margin improved 249 basis points in the quarter to 12.06 percent from 9.57 percent in the last year period.
Commenting on the quarter, President and Chief executive officer Leroy Ball said, “It is encouraging to see consolidated sales stabilize after enduring five consecutive quarters of double-digit declines on a year-over-year basis. That stabilization largely contributed to the significant growth in our profitability as well as improved earnings per share for the quarter. The value created through the restructuring and repositioning of our business as the global leader in wood-based technology is now starting to be fully reflected in our results. Another bright spot for the quarter was our ability to maintain a net debt leverage ratio of 3.7, which we had reached at year-end 2016. The March quarter is typically our highest cash consumption quarter of the year, so this should position us to reach our net debt leverage goal of less than 3.5 by the end of this year.”
Koppers Holdings expects revenue to be $1,400 million for fiscal year 2017. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $2.80 to $3 on adjusted basis.
Operating cash flow turns negative
Koppers Holdings Inc has spent $24.10 million cash to meet operating activities during the quarter as against cash inflow of $2.50 million in the last year period. The company has spent $4.90 million cash to meet investing activities during the quarter as against cash outgo of $8.30 million in the last year period.
Cash flow from financing activities was $31.50 million for the quarter, up 1,269.57 percent or $29.20 million, when compared with the last year period.
Cash and cash equivalents stood at $23.40 million as on Mar. 31, 2017, up 50 percent or $7.80 million from $15.60 million on Mar. 31, 2016.
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