|Quaker Chemical Corporation (KWR) has reported 53.02 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $17.43 million, or $1.31 a share in the quarter, compared with $11.39 million, or $0.86 a share for the same period last year. On an adjusted basis, earnings per share were at $1.26 for the quarter compared with $1.16 in the same period last year. Revenue during the quarter grew 4.35 percent to $191.24 million from $183.28 million in the previous year period. Gross margin for the quarter contracted 107 basis points over the previous year period to 36.45 percent. Total expenses were 89.34 percent of quarterly revenues, down from 92.79 percent for the same period last year. This has led to an improvement of 344 basis points in operating margin to 10.66 percent.
Operating income for the quarter was $20.38 million, compared with $13.22 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $25.64 million compared with $25.31 million in the prior year period. At the same time, adjusted EBITDA margin contracted 40 basis points in the quarter to 13.40 percent from 13.81 percent in the last year period.
Michael F. Barry, Chairman, Chief Executive Officer and President, commented, “We are pleased with our fourth quarter results, despite continued foreign exchange headwinds. We were able to grow our organic volumes by 7% on continued market share gains, as well as from increased production in some of our end markets. While our gross margins declined due to raw material price increases and certain one-time costs, we were able to partially offset the decline with savings realized from our previously announced restructuring program and other cost streamlining initiatives. Overall, we achieved a 9% increase in non-GAAP earnings despite foreign exchange negatively impacting earnings by 5%.”
Operating cash flow remains almost stable
Cash flow from operating activities was almost stable for the quarter at $73.75 million, when compared with the previous year period The company has spent $23.77 million cash to meet investing activities during the year as against cash outgo of $34.20 million in the last year. It has incurred net capital expenditure of $9.77 million on net basis during the year, down 10.37 percent or $1.13 million from year ago.
The company has spent $38.13 million cash to carry out financing activities during the year as against cash outgo of $16.90 million in the last year period.
Cash and cash equivalents stood at $88.82 million as on Dec. 31, 2016, up 9.58 percent or $7.77 million from $81.05 million on Dec. 31, 2015.
Working capital increases marginally
Quaker Chemical Corporation has recorded an increase in the working capital over the last year. It stood at $249.06 million as at Dec. 31, 2016, up 3.22 percent or $7.76 million from $241.30 million on Dec. 31, 2015. Current ratio was at 2.95 as on Dec. 31, 2016, up from 2.94 on Dec. 31, 2015.
Debt comes down
Quaker Chemical Corporation has recorded a decline in total debt over the last one year. It stood at $66.48 million as on Dec. 31, 2016, down 19.03 percent or $15.62 million from $82.10 million on Dec. 31, 2015. Total debt was 9.61 percent of total assets as on Dec. 31, 2016, compared with 11.98 percent on Dec. 31, 2015. Debt to equity ratio was at 0.16 as on Dec. 31, 2016, down from 0.22 as on Dec. 31, 2015. Interest coverage ratio improved to 30.75 for the quarter from 19.05 for the same period last year. 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
