Turning Point Brands, Inc. (TPB) has reported 15.98 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $1.88 million, or $0.10 a share in the quarter, compared with $2.23 million, or $0.27 a share for the same period last year. Revenue during the quarter surged 33.93 percent to $66.79 million from $49.87 million in the previous year period. Gross margin for the quarter contracted 800 basis points over the previous year period to 41.42 percent. Total expenses were 83.89 percent of quarterly revenues, up from 78.12 percent for the same period last year. That has resulted in a contraction of 577 basis points in operating margin to 16.11 percent.
Operating income for the quarter was $10.76 million, compared with $10.91 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $13.64 million compared with $12.45 million in the prior year period. At the same time, adjusted EBITDA margin contracted 455 basis points in the quarter to 20.42 percent from 24.97 percent in the last year period.
"Today marks the one-year anniversary of our initial public offering and listing on the NYSE,” said TPB president and chief executive officer, Larry Wexler. "Over the course of the last twelve months, we have produced strong operating results and improved our cash flow, completed two acquisitions and refinanced our debt. We expect to continue to generate organic growth from our focus brands, Zig-Zag, Stoker’s, and VaporBeast. We plan to use our strong cash flow to further strengthen our brands, reduce our debt and fund acquisitions. We believe that we are increasingly well-positioned to continue to grow the business and improve our operating performance."
Operating cash flow turns negativeTurning Point Brands, Inc. has spent $2.34 million cash to meet operating activities during the quarter as against cash inflow of $0.98 million in the last year period. The company has spent $0.37 million cash to meet investing activities during the quarter as against cash outgo of $0.45 million in the last year period.
Cash flow from financing activities was $2.09 million for the quarter as against cash outgo of $2.42 million in the last year period.
Cash and cash equivalents stood at $2.25 million as on Mar. 31, 2017, down 23.54 percent or $0.69 million from $2.94 million on Mar. 31, 2016.
Working capital drops significantly
Turning Point Brands, Inc. has witnessed a decline in the working capital over the last year. It stood at $26.44 million as at Mar. 31, 2017, down 40.95 percent or $18.33 million from $44.78 million on Mar. 31, 2016. Current ratio was at 1.49 as on Mar. 31, 2017, down from 3.46 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 64 days for the quarter from 80 days for the last year period. Days sales outstanding were almost stable at 3 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 70 days for the quarter compared with 87 days for the previous year period. At the same time, days payable outstanding was almost stable at 9 days for the quarter, when compared with the previous year period.
Debt comes down
Turning Point Brands has recorded a decline in total debt over the last one year. It stood at $227.40 million as on Mar. 31, 2017, down 22.43 percent or $65.75 million from $293.15 million on Mar. 31, 2016. Total debt was 78.60 percent of total assets as on Mar. 31, 2017, compared with 121.37 percent on Mar. 31, 2016. Interest coverage ratio improved to 2.18 for the quarter from 1.29 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: [email protected]
