USG Corporation (USG) has reported an 18.42 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $62 million, or $0.42 a share in the quarter, compared with $76 million, or $0.52 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $69 million, or $0.46 a share compared with $68 million or $0.46 a share, a year ago.
Revenue during the quarter went up marginally by 2.68 percent to $767 million from $747 million in the previous year period. Gross margin for the quarter expanded 97 basis points over the previous year period to 23.60 percent. Total expenses were 87.35 percent of quarterly revenues, down from 87.42 percent for the same period last year. This has led to an improvement of 6 basis points in operating margin to 12.65 percent.
Operating income for the quarter was $97 million, compared with $94 million in the previous year period.
However, the adjusted operating income for the quarter stood at $127 million compared to $107 million in the prior year period. At the same time, adjusted operating margin improved 223 basis points in the quarter to 16.56 percent from 14.32 percent in the last year period.
Operating cash flow improves significantly
USG Corporation has generated cash of $297 million from operating activities during the nine month period, up 94.12 percent or $144 million, when compared with the last year period. Cash flow from investing activities was $104 million for the nine month period, up 3,366.67 percent or $101 million, when compared with the last year period. It has incurred net capital expenditure of $32 million on net basis during the nine month period, up 28 percent or $7 million from year ago period.
The company has spent $204 million cash to carry out financing activities during the nine month period as against cash outgo of $44 million in the last year period.
Cash and cash equivalents stood at $634 million as on Sep. 30, 2016, up 90.39 percent or $301 million from $333 million on Sep. 30, 2015.
Working capital declines
USG Corporation has witnessed a decline in the working capital over the last year. It stood at $775 million as at Sep. 30, 2016, down 7.85 percent or $66 million from $841 million on Sep. 30, 2015. Current ratio was at 1.95 as on Sep. 30, 2016, down from 2.78 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 21 days for the quarter from 67 days for the last year period. Days sales outstanding went down to 40 days for the quarter compared with 56 days for the same period last year.
Days inventory outstanding has decreased to 18 days for the quarter compared with 51 days for the previous year period. At the same time, days payable outstanding went down to 37 days for the quarter from 40 for the same period last year.
Debt comes down
USG Corporation has recorded a decline in total debt over the last one year. It stood at $1,977 million as on Sep. 30, 2016, down 9.64 percent or $211 million from $2,188 million on Sep. 30, 2015. Short-term debt stood at $300 million as on Sep. 30, 2016. Total debt was 42.42 percent of total assets as on Sep. 30, 2016, compared with 55.58 percent on Sep. 30, 2015. Debt to equity ratio was at 1.21 as on Sep. 30, 2016, down from 4.24 as on Sep. 30, 2015. Interest coverage ratio improved to 2.62 for the quarter from 2.35 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: editor@irisindia.net
