Trinseo S.A. (TSE) has reported an 82.02 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $78.51 million, or $1.72 a share in the quarter, compared with $43.13 million, or $0.88 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $76.90 million, or $1.68 a share compared with $54.30 million or $1.11 a share, a year ago.

Revenue during the quarter went up marginally by 2.28 percent to $917.45 million from $897.01 million in the previous year period. Gross margin for the quarter expanded 250 basis points over the previous year period to 15.02 percent. Total expenses were 87.86 percent of quarterly revenues, down from 90.29 percent for the same period last year. This has led to an improvement of 242 basis points in operating margin to 12.14 percent.

Operating income for the quarter was $111.34 million, compared with $87.11 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $142 million compared with $115.70 million in the prior year period. At the same time, adjusted EBITDA margin improved 258 basis points in the quarter to 15.48 percent from 12.90 percent in the last year period.

Commenting on the Company's performance, Chris Pappas, Trinseo president and chief executive officer, said, "We continue to see strong fundamental performance across the company. Our full year Net Income and Adjusted EBITDA were better than our previous guidance due to higher than expected styrene margins and favorable raw material timing, net of some unfavorable price lag impacts. Overall for the year, we had record Net Income and Adjusted EBITDA results, including record performance in both our Performance Materials and Basic Plastics & Feedstocks divisions." Pappas continued, "We also had record cash generation for the year, and we continue to return capital to shareholders. Over the year we repurchased approximately 4.5 million shares, representing about 9% of our outstanding shares, and we initiated a quarterly dividend which we started paying in July."

For fiscal year 2017, Trinseo S.A. expects net income to be $310 million and forecasts adjusted net income to be $310 million. The company forecasts diluted earnings per share to be $6.82 and forecasts diluted earnings per share to be $6.82 on adjusted basis.

For the first-quarter 2017, Trinseo S.A. projects net income to be in the range of $100 million to $108 million and expects adjusted net income to be in the range of $100 million to $108 million. The company expects diluted earnings per share to be in the range of $2.19 to $2.37. On an adjusted basis, the company expects diluted earnings per share to be in the range of $2.19 to $2.37. 

The company has spent $117.29 million cash to meet investing activities during the year as against cash outgo of $106.67 million in the last year.

The company has spent $247.54 million cash to carry out financing activities during the year as against cash outgo of $26.22 million in the last year period.

Cash and cash equivalents stood at $465.11 million as on Dec. 31, 2016, up 7.85 percent or $33.85 million from $431.26 million on Dec. 31, 2015.

Working capital increases

Trinseo S.A. has recorded an increase in the working capital over the last year. It stood at $890.72 million as at Dec. 31, 2016, up 6.07 percent or $50.95 million from $839.77 million on Dec. 31, 2015. Current ratio was at 2.64 as on Dec. 31, 2016, down from 2.87 on Dec. 31, 2015.

Cash conversion cycle (CCC) has increased to 29 days for the quarter from 27 days for the last year period. Days sales outstanding went up to 28 days for the quarter compared with 25 days for the same period last year.

Days inventory outstanding has increased to 23 days for the quarter compared with 21 days for the previous year period. At the same time, days payable outstanding went up to 22 days for the quarter from 19 for the same period last year.