Lexmark International (LXK) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $18.30 million, or $ 0.28 a share in the quarter, against a net loss of $15.20 million, or $0.25 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $49 million, or $0.74 a share compared with $35 million or $1.39 a share, a year ago.
Revenue during the quarter went down marginally by 0.85 percent to $843.90 million from $851.10 million in the previous year period. Gross margin for the quarter expanded 148 basis points over the previous year period to 39.03 percent. Operating margin for the quarter period stood at positive 4.25 percent as compared to a negative 2.54 percent for the previous year period.
Operating income for the quarter was $35.90 million, compared with an operating loss of $21.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $122 million compared with $104 million in the prior year period. At the same time, adjusted EBITDA margin improved 224 basis points in the quarter to 14.46 percent from 12.22 percent in the last year period.
Working capital remains negativeWorking capital of Lexmark International was negative $121 million on Sep. 30, 2016 compared with negative $23.30 million on Sep. 30, 2015. Current ratio was at 0.88 as on Sep. 30, 2016, down from 0.98 on Sep. 30, 2015. Cash conversion cycle (CCC) was almost stable at 11 days for the quarter, when compared with the last year period. Days sales outstanding went down to 47 days for the quarter compared with 49 days for the same period last year.
Days inventory outstanding has decreased to 21 days for the quarter compared with 46 days for the previous year period. At the same time, days payable outstanding went down to 79 days for the quarter from 84 for the same period last year.
Debt comes down significantlyLexmark International has recorded a decline in total debt over the last one year. It stood at $1,017.90 million as on Sep. 30, 2016, down 43.34 percent or $778.70 million from $1,796.60 million on Sep. 30, 2015. Total debt was 27.99 percent of total assets as on Sep. 30, 2016, compared with 45.11 percent on Sep. 30, 2015. Debt to equity ratio was at 1.01 as on Sep. 30, 2016, down 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
