Veritiv Corporation (VRTV) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $2.20 million, or $ 0.14 a share in the quarter, against a net profit of $3.30 million, or $0.20 a share in the last year period.
Revenue during the quarter went down marginally by 1.25 percent to $1,994.60 million from $2,019.80 million in the previous year period. Gross margin for the quarter expanded 23 basis points over the previous year period to 18.31 percent. Total expenses were 99.80 percent of quarterly revenues, up from 99.23 percent for the same period last year. That has resulted in a contraction of 57 basis points in operating margin to 0.20 percent.
Operating income for the quarter was $3.90 million, compared with $15.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $29.80 million compared with $34.90 million in the prior year period. At the same time, adjusted EBITDA margin contracted 23 basis points in the quarter to 1.49 percent from 1.73 percent in the last year period.
"Our first quarter results were mixed," said MaryLaschinger, Chairman and CEO of Veritiv Corporation. "Our revenue trajectory continues to improve, led by a strong quarterfrom our Packaging segment. Consolidated Adjusted EBITDA was lower than the prior year quarter, due in part to investments beingmade to grow the business. Looking forward, we expect positive performance from Packaging and Facility Solutions to help offsetthe industry challenges we are experiencing in our Print and Publishing businesses, keeping us on track for our 2017 commitments."
Operating cash flow turns negative
Veritiv Corporation has spent $40.80 million cash to meet operating activities during the quarter as against cash inflow of $74.50 million in the last year period.
The company has spent $9.40 million cash to meet investing activities during the quarter as against cash outgo of $7.90 million in the last year period. It has incurred capital expenditure of $9.40 million on net basis during the quarter, up 18.99 percent or $1.50 million from year ago period.
Cash flow from financing activities was $32.60 million for the quarter as against cash outgo of $73.90 million in the last year period.
Cash and cash equivalents stood at stood at $52.40 million as at Mar. 31, 2017.
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