Royal Gold, Inc. (RGLD) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $23.66 million, or $ 0.36 a share in the quarter, against a net loss of $67.66 million, or $1.04 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $23.66 million, or $0.36 a share compared with $18.86 million or $0.29 a share, a year ago. Revenue during the quarter grew 14.42 percent to $106.97 million from $93.49 million in the previous year period. Gross margin for the quarter contracted 179 basis points over the previous year period to 79.04 percent. Operating margin for the quarter period stood at positive 33.61 percent as compared to a negative 77.08 percent for the previous year period.
Operating income for the quarter was $35.95 million, compared with an operating loss of $72.06 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $78.56 million compared with $69.26 million in the prior year period. At the same time, adjusted EBITDA margin contracted 65 basis points in the quarter to 73.44 percent from 74.09 percent in the last year period.
"We generated our second straight quarter of record operating cash flow, and paid down $45 million of debt,” commented Tony Jensen, president and chief executive officer. "With no additional funding requirements, cash flow from our diverse stream and royalty portfolio on 38 operating properties will continue to strengthen our balance sheet. At the same time, we look forward to three new or expanding sources of revenue currently in development, including New Golds Rainy River mine, Barricks Cortez Crossroads mine, and Goldcorps Pyrite Leach Project at the Peñasquito mine. We expect these new projects to be commissioned in calendar 2017, 2018 and 2019, respectively, providing further growth and revenue diversification."
Operating cash flow improves significantlyRoyal Gold, Inc. has generated cash of $200.89 million from operating activities during the nine month period, up 66.51 percent or $80.25 million, when compared with the last year period. The company has spent $202.22 million cash to meet investing activities during the nine month period as against cash outgo of $994.62 million in the last year period.
The company has spent $27.22 million cash to carry out financing activities during the nine month period as against cash inflow of $253.99 million in the last year period.
Cash and cash equivalents stood at $88.09 million as on Mar. 31, 2017, down 28.30 percent or $34.77 million from $122.86 million on Mar. 31, 2016.
Working capital drops significantly
Royal Gold, Inc. has witnessed a decline in the working capital over the last year. It stood at $109.40 million as at Mar. 31, 2017, down 27.54 percent or $41.58 million from $150.98 million on Mar. 31, 2016. Current ratio was at 5.42 as on Mar. 31, 2017, down from 7.24 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 34 days for the quarter from 57 days for the last year period. Days sales outstanding went down to 31 days for the quarter compared with 38 days for the same period last year.
Days inventory outstanding has decreased to 13 days for the quarter compared with 35 days for the previous year period. At the same time, days payable outstanding went down to 11 days for the quarter from 16 for the same period last year.
Debt remains almost stable
Royal Gold, Inc. has witnessed an increase in total debt over the last one year. It stood at $635.88 million as on Mar. 31, 2017, up 0.89 percent or $5.63 million from $630.25 million on Mar. 31, 2016. Royal Gold has witnessed an increase in long-term debt over the last one year. Total debt was 20.32 percent of total assets as on Mar. 31, 2017, compared with 20.34 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 0.27 as on Mar. 31, 2017, when compared with the 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: [email protected]
