Turning Point Brands, Inc (TPB) has reported 42.41 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $6.79 million, or $0.34 a share in the quarter, compared with $4.77 million, or $0.57 a share for the same period last year. Revenue during the quarter went down marginally by 0.92 percent to $50.96 million from $51.43 million in the previous year period. Gross margin for the quarter contracted 100 basis points over the previous year period to 48.31 percent. Total expenses were 76.67 percent of quarterly revenues, up from 73.71 percent for the same period last year. That has resulted in a contraction of 296 basis points in operating margin to 23.33 percent.
Operating income for the quarter was $11.89 million, compared with $13.52 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $13.68 million compared with $14.18 million in the prior year period. At the same time, adjusted EBITDA margin contracted 73 basis points in the quarter to 26.84 percent from 27.57 percent in the last year period.
“Turning Point Brands generated solid quarterly results and near record net income as we continued to execute strategies to expand our performance and presence in the OTP marketplace," said TPB President and Chief Executive Officer, Larry Wexler. "While third quarter 2016 results were encouraging, an exceptionally strong third quarter in 2015 makes comparisons to a year ago difficult. Importantly, we are pleased with the progress we have made in our core tobacco portfolio for the first nine months of the year, achieving a mid-single digit sales increase and an expansion of our gross margin.”
Operating cash flow turns negative
Turning Point Brands, Inc has spent $0.48 million cash to meet operating activities during the nine month period as against cash inflow of $12.62 million in the last year period. The company has spent $1.24 million cash to meet investing activities during the nine month period as against cash outgo of $1.53 million in the last year period.
Cash flow from financing activities was $1.30 million for the nine month period as against cash outgo of $9.72 million in the last year period.
Cash and cash equivalents stood at $4.41 million as on Sep. 30, 2016, down 55.18 percent or $5.43 million from $9.84 million on Sep. 30, 2015.
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