XPO Logistics (XPO) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $15.10 million, or $ 0.11 a share in the quarter, against a net loss of $40.40 million, or $0.94 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $49.80 million, or $0.41 a share compared with a net loss of $15.20 million, or $0.15 a share in the last year period.
Revenue during the quarter surged 57.22 percent to $3,713.80 million from $2,362.10 million in the previous year period. Gross margin for the quarter expanded 103 basis points over the previous year period to 14.86 percent. Total expenses were 95.45 percent of quarterly revenues, down from 98.13 percent for the same period last year. This has led to an improvement of 268 basis points in operating margin to 4.55 percent.
Operating income for the quarter was $168.80 million, compared with $44.10 million in the previous year period.
However, the adjusted operating income for the quarter stood at $110.30 million compared to $68 million in the prior year period. At the same time, adjusted operating margin improved 9 basis points in the quarter to 2.97 percent from 2.88 percent in the last year period.
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said, "Today, we reported record third quarter results for net income, cash flow from operations and adjusted EBITDA. Importantly, we generated free cash flow of $65 million in the quarter, and raised our 2016 target for free cash flow to at least $175 million.
Operating cash flow improves significantlyXPO Logistics has generated cash of $404.60 million from operating activities during the nine month period, up 926.90 percent or $365.20 million, when compared with the last year period. The company has spent $252 million cash to meet investing activities during the nine month period as against cash outgo of $1,695.20 million in the last year period. It has incurred net capital expenditure of $260.60 million on net basis during the nine month period, up 244.25 percent or $184.90 million from year ago period.
The company has spent $83.30 million cash to carry out financing activities during the nine month period as against cash inflow of $2,302.20 million in the last year period.
Cash and cash equivalents stood at $360.30 million as on Sep. 30, 2016, down 71.97 percent or $925 million from $1,285.30 million on Sep. 30, 2015.
Working capital drops significantly
XPO Logistics has witnessed a decline in the working capital over the last year. It stood at $477.80 million as at Sep. 30, 2016, down 63.02 percent or $814.10 million from $1,291.90 million on Sep. 30, 2015. Current ratio was at 1.18 as on Sep. 30, 2016, down from 1.66 on Sep. 30, 2015.
Days sales outstanding went down to 50 days for the quarter compared with 65 days for the same period last year.
At the same time, days payable outstanding went down to 28 days for the quarter from 45 for the same period last year.
Debt increases substantiallyXPO Logistics has witnessed an increase in total debt over the last one year. It stood at $5,414.40 million as on Sep. 30, 2016, up 75.22 percent or $2,324.30 million from $3,090.10 million on Sep. 30, 2015. Total debt was 43.60 percent of total assets as on Sep. 30, 2016, compared with 34.20 percent on Sep. 30, 2015. Debt to equity ratio was at 1.58 as on Sep. 30, 2016, up from 0.98 as on Sep. 30, 2015. Interest coverage ratio improved to 1.82 for the quarter from 0.72 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
