TopBuild Corp. (BLD) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $1.71 million, or $ 0.05 a share in the quarter, against a net profit of $11.12 million, or $0.29 a share in the last year period. On the other hand, adjusted net income from continuing operations for the quarter stood at $16.93 million, or $0.46 a share compared with $11.89 million or $0.31 a share, a year ago.
Revenue during the quarter grew 6.60 percent to $441.36 million from $414.02 million in the previous year period. Gross margin for the quarter expanded 142 basis points over the previous year period to 23.03 percent. Operating margin for the quarter stood at negative 0.78 percent as compared to a positive 4.77 percent for the previous year period.
Operating loss for the quarter was $3.46 million, compared with an operating income of $19.77 million in the previous year period.
However, the adjusted operating income for the quarter stood at $28.57 million compared to $20.78 million in the prior year period. At the same time, adjusted operating margin improved 145 basis points in the quarter to 6.47 percent from 5.02 percent in the last year period.
Jerry Volas, chief executive officer, stated, "TopBuild reported another strong quarter. Top line growth was solid and operating margins expanded in both business segments. Our results reflect the ongoing housing recovery combined with the impact of internal initiatives to expand our residential market share, grow our commercial revenue base and enhance our operational efficiency. We remain confident 2017 will be another outstanding year for TopBuild."
Operating cash flow improves significantly
TopBuild Corp. has generated cash of $14.83 million from operating activities during the quarter, up 342.41 percent or $11.48 million, when compared with the last year period. The company has spent $44.88 million cash to meet investing activities during the quarter as against cash outgo of $2.76 million in the last year period. It has incurred capital expenditure of $3.67 million on net basis during the quarter, up 29.85 percent or $0.84 million from year ago period.
The company has spent $23.96 million cash to carry out financing activities during the quarter as against cash outgo of $5.30 million in the last year period.
Cash and cash equivalents stood at $80.37 million as on Mar. 31, 2017, down 25.69 percent or $27.78 million from $108.15 million on Mar. 31, 2016.
Working capital declines
TopBuild Corp. has witnessed a decline in the working capital over the last year. It stood at $143.33 million as at Mar. 31, 2017, down 9.81 percent or $15.59 million from $158.93 million on Mar. 31, 2016. Current ratio was at 1.41 as on Mar. 31, 2017, down from 1.52 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 3 days for the quarter from 18 days for the last year period. Days sales outstanding went down to 51 days for the quarter compared with 53 days for the same period last year.
Days inventory outstanding has decreased to 15 days for the quarter compared with 32 days for the previous year period. At the same time, days payable outstanding went down to 64 days for the quarter from 67 for the same period last year.
Debt comes down
TopBuild Corp. has recorded a decline in total debt over the last one year. It stood at $173.88 million as on Mar. 31, 2017, down 8.98 percent or $17.16 million from $191.04 million on Mar. 31, 2016. Total debt was 10.30 percent of total assets as on Mar. 31, 2017, compared with 11.75 percent on Mar. 31, 2016. Debt to equity ratio was at 0.18 as on Mar. 31, 2017, down from 0.21 as on Mar. 31, 2016.
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