Platform Specialty Products Corporation (PAH) saw its loss narrow to $24.40 million, or $0.09 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $134.80 million, or $0.59 a share. On the other hand, adjusted net income for the quarter stood at $48.90 million, or $0.16 a share compared with $30.20 million or $0.10 a share, a year ago. Revenue during the quarter grew 4.61 percent to $861.80 million from $823.80 million in the previous year period. Gross margin for the quarter expanded 69 basis points over the previous year period to 43.91 percaent. Total expenses were 88.48 percent of quarterly revenues, down from 93.68 percent for the same period last year. This has led to an improvement of 520 basis points in operating margin to 11.52 percent.
Operating income for the quarter was $99.30 million, compared with $52.10 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $193.10 million compared with $168.40 million in the prior year period. At the same time, adjusted EBITDA margin improved 196 basis points in the quarter to 22.41 percent from 20.44 percent in the last year period.
Chief Executive Officer Rakesh Sachdev said, “We are pleased to report a strong start to 2017 for Platform. Both our Performance and Agricultural Solutions businesses grew sales, earnings, and margins. Our combined organic sales growth of 3% was driven by mix improvements and volume growth as we gained share in certain businesses and benefited from continued market momentum in others. We saw the benefit of our recent investments in the business as many of our focus areas for growth, including semiconductor chemistries and Ag biosolutions products, were meaningful contributors to organic sales growth in the quarter. We are encouraged by the strength of our industrial and electronics markets - particularly in Asia - and by the strength of the start of the year for our Ag business in Latin America which is expected to offset some of the weakness we are seeing from the slow and cold season this year in the European Ag markets. Furthermore, our teams continue to deliver on synergies and cost management which are contributing to our margin growth. We are reaffirming our 2017 adjusted EBITDA guidance of $800 million to $830 million. We are pleased with our progress thus far and encouraged about our ability to deliver another strong year of growth in earnings and cash flow in 2017.”
Operating cash flow remains negativePlatform Specialty Products Corporation has spent $120.40 million cash to meet operating activities during the quarter as against cash outgo of $210.40 million in the last year period. The company has spent $25.40 million cash to meet investing activities during the quarter as against cash outgo of $19.90 million in the last year period. It has incurred net capital expenditure of $2 million on net basis during the quarter, down 51.22 percent or $2.10 million from year ago period.
Cash flow from financing activities was $80 million for the quarter, down 33.72 percent or $40.70 million, when compared with the last year period.
Cash and cash equivalents stood at $366.40 million as on Mar. 31, 2017, up 11.13 percent or $36.70 million from $329.70 million on Mar. 31, 2016.
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