LSB Industries, Inc (LXU) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $133.55 million, or $ 4.14 a share in the quarter, against a net loss of $33.76 million, or $1.48 a share in the last year period. On the other hand, adjusted net loss for the quarter widened to $57.30 million, or $2.12 a share from a loss of $10.70 million or $0.47 a share, a year ago.
Revenue during the quarter dropped 9.38 percent to $80.26 million from $88.57 million in the previous year period. Gross margin for the quarter stood at negative 45.33 percent as compared to a negative 13.32 percent for the previous year period. Operating margin for the quarter stood at negative 57.23 percent as compared to a negative 70.23 percent for the previous year period.
Operating loss for the quarter was $45.93 million, compared with an operating loss of $62.20 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $43.90 million compared to operating loss of $19.90 million in prior year period.
“As we previously announced, our third quarter 2016 results were impacted by a combination of planned and unplanned maintenance activities at our three primary chemical facilities and the softening environment for our agricultural products,” stated Daniel Greenwell, LSB’s president and chief executive officer.
Working capital increases sharply
LSB Industries, Inc has recorded an increase in the working capital over the last year. It stood at $86.20 million as at Sep. 30, 2016, up 26.96 percent or $18.30 million from $67.90 million on Sep. 30, 2015. Current ratio was at 1.44 as on Sep. 30, 2016, up from 1.37 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 75 days for the quarter from 41 days for the last year period. Days sales outstanding went up to 133 days for the quarter compared with 91 days for the same period last year.
Days inventory outstanding has decreased to 5 days for the quarter compared with 49 days for the previous year period. At the same time, days payable outstanding went down to 64 days for the quarter from 100 for the same period last year.
Debt moves up marginally
LSB Industries, Inc has witnessed an increase in total debt over the last one year. It stood at $520.50 million as on Sep. 30, 2016, up 4.85 percent or $24.06 million from $496.45 million on Sep. 30, 2015. Total debt was 37.57 percent of total assets as on Sep. 30, 2016, compared with 42.91 percent on Sep. 30, 2015. Debt to equity ratio was at 1 as on Sep. 30, 2016, down from 1.21 as on Sep. 30, 2015.
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