Primo Water Corporation (PRMW) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $11.86 million, or $ 0.37 a share in the quarter, against a net profit of $1.03 million, or $0.04 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $1.68 million, or $0.05 a share compared with a net profit of $2 million, or $0.07 a share in the last year period.
Revenue during the quarter surged 88.06 percent to $60.74 million from $32.30 million in the previous year period. Gross margin for the quarter expanded 56 basis points over the previous year period to 29.51 percent. Operating margin for the quarter stood at negative 5.69 percent as compared to a positive 4.68 percent for the previous year period.
Operating loss for the quarter was $3.45 million, compared with an operating income of $1.51 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.78 million compared with $4.92 million in the prior year period. At the same time, adjusted EBITDA margin improved 86 basis points in the quarter to 16.10 percent from 15.24 percent in the last year period.
"We are pleased with our business momentum to start the year," commented Billy D. Prim, Primo Water's chief executive officer. "In the first quarter, we generated solid net sales and increased adjusted EBITDA, largely driven by an increase in Water segment net sales and the inclusion of Glacier Water. Our team is executing at a high-level and we are progressing ahead of schedule on our integration plans and synergy realization. Based upon these results, we are raising our full year Adjusted EBITDA 2017 outlook. Going forward, we remain focused on the execution of our strategic plan to further grow our business and, in turn, drive long-term value for our shareholders.”
For the second-quarter, Primo Water Corporation expects revenue to be in the range of $72 million to $75 million.
Operating cash flow drops significantlyPrimo Water Corporation has generated cash of $0.05 million from operating activities during the quarter, down 98.27 percent or $ 2.67 million, when compared with the last year period. The company has spent $5.19 million cash to meet investing activities during the quarter as against cash outgo of $3.52 million in the last year period. It has incurred capital expenditure of $4.53 million on net basis during the quarter, up 53.54 percent or $1.58 million from year ago period.
The company has spent $4.16 million cash to carry out financing activities during the quarter as against cash inflow of $0.08 million in the last year period.
Cash and cash equivalents stood at $6.32 million as on Mar. 31, 2017, up 452.58 percent or $5.17 million from $1.14 million on Mar. 31, 2016.
Working capital turns negative
Working capital of Primo Water Corporation has turned negative to $3.82 million on Mar. 31, 2017 from positive $5.71 million on Mar. 31, 2016. Current ratio was at 0.89 as on Mar. 31, 2017, down from 1.36 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 3 days for the quarter from 10 days for the last year period. Days sales outstanding went down to 18 days for the quarter compared with 36 days for the same period last year.
Days inventory outstanding has decreased to 9 days for the quarter compared with 24 days for the previous year period. At the same time, days payable outstanding went down to 30 days for the quarter from 50 for the same period last year.
Debt increases substantiallyPrimo Water Corporation has witnessed an increase in total debt over the last one year. It stood at $275.50 million as on Mar. 31, 2017, up 1,168.25 percent or $253.78 million from $21.72 million on Mar. 31, 2016. Total debt was 71.24 percent of total assets as on Mar. 31, 2017, compared with 32.47 percent on Mar. 31, 2016. Debt to equity ratio was at 4.37 as on Mar. 31, 2017, up from 0.80 as on Mar. 31, 2016. 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
