Veritiv Corporation (VRTV) has reported 61.38 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $5.60 million, or $0.34 a share in the quarter, compared with $14.50 million, or $0.91 a share for the same period last year.
Revenue during the quarter dropped 4.20 percent to $2,126.60 million from $2,219.80 million in the previous year period. Gross margin for the quarter expanded 25 basis points over the previous year period to 18 percent. Total expenses were 98.92 percent of quarterly revenues, up from 98.55 percent for the same period last year. That has resulted in a contraction of 36 basis points in operating margin to 1.08 percent.
Operating income for the quarter was $23 million, compared with $32.10 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $57.10 million compared with $60.60 million in the prior year period. At the same time, adjusted EBITDA margin contracted 4 basis points in the quarter to 2.69 percent from 2.73 percent in the last year period.
"Our third quarter results met our expectations, and we continue to be on track with our 2016 commitments," said Mary Laschinger, Chairman and chief executive officer of Veritiv Corporation. "Given the results and our outlook for the balance of the year, we are reaffirming the upper end of our full year 2016 Adjusted EBITDA guidance."
Operating cash flow drops significantlyVeritiv has generated cash of $59.90 million from operating activities during the nine month period, down 54.10 percent or $70.60 million, when compared with the last year period. The company has spent $24.70 million cash to meet investing activities during the nine month period as against cash outgo of $34 million in the last year period. It has incurred net capital expenditure of $24.70 million on net basis during the nine month period, down 27.35 percent or $9.30 million from year ago period.
The company has spent $30.40 million cash to carry out financing activities during the nine month period as against cash outgo of $99.20 million in the last year period.
Cash and cash equivalents stood at $59.20 million as on Sep. 30, 2016, up 10.65 percent or $5.70 million from $53.50 million on Sep. 30, 2015.
Working capital increases
Veritiv has recorded an increase in the working capital over the last year. It stood at $1,112 million as at Sep. 30, 2016, up 5.38 percent or $56.80 million from $1,055.20 million on Sep. 30, 2015. Current ratio was at 2.30 as on Sep. 30, 2016, up from 2.17 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 31 days for the quarter from 47 days for the last year period. Days sales outstanding went up to 46 days for the quarter compared with 44 days for the same period last year.
Days inventory outstanding has decreased to 19 days for the quarter compared with 36 days for the previous year period. At the same time, days payable outstanding went up to 33 days for the quarter from 32 for the same period last year.
Debt comes downVeritiv has recorded a decline in total debt over the last one year. It stood at $771.20 million as on Sep. 30, 2016, down 22.63 percent or $225.60 million from $996.80 million on Sep. 30, 2015. Total debt was 30.76 percent of total assets as on Sep. 30, 2016, compared with 39.20 percent on Sep. 30, 2015. Debt to equity ratio was at 1.39 as on Sep. 30, 2016, down from 1.91 as on Sep. 30, 2015. 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
