Echo Global Logistics, Inc (ECHO) has reported 36.63 percent plunge in profit for the quarter ended Sep. 30, 2015. The company has earned $3.46 million, or $0.11 a share in the quarter, compared with $5.46 million, or $0.23 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $10.20 million, or $0.34 a share compared with $7.20 million or $0.30 a share, a year ago. Revenue during the quarter surged 40.37 percent to $449.99 million from $320.57 million in the previous year period. Gross margin for the quarter expanded 119 basis points over the previous year period to 19.42 percent. Total expenses were 98.09 percent of quarterly revenues, up from 97.20 percent for the same period last year. That has resulted in a contraction of 89 basis points in operating margin to 1.91 percent.
Operating income for the quarter was $8.61 million, compared with $8.97 million in the previous year period.
However, the adjusted operating income for the quarter stood at $17.60 million compared to $11.80 million in the prior year period. At the same time, adjusted operating margin improved 23 basis points in the quarter to 3.91 percent from 3.68 percent in the last year period.
"Echo delivered record results in the third quarter in terms of top line revenue and earnings," said Doug Waggoner, Chairman and Chief executive officer of Echo. "In a soft market with relatively loose truckload capacity, Echo was able to continue to expand its net revenue margin and continue to win market share by focusing on the service our people provide to our clients and our carriers, all while continuing to focus on the successful integration of our acquisition of Command Transportation."
Operating cash flow improves significantly
Echo Global Logistics has generated cash of $52.80 million from operating activities during the nine month period, up 95.19 percent or $25.75 million, when compared with the last year period. The company has spent $400.54 million cash to meet investing activities during the nine month period as against cash outgo of $46.17 million in the last year period.
Cash flow from financing activities was $357.99 million for the nine month period as against cash outgo of $3.28 million in the last year period.
Cash and cash equivalents stood at $42.79 million as on Sep. 30, 2015, up 42.14 percent or $12.69 million from $30.10 million on Sep. 30, 2014.
Working capital increases sharply
Echo Global Logistics has recorded an increase in the working capital over the last year. It stood at $114.17 million as at Sep. 30, 2015, up 126.04 percent or $63.66 million from $50.51 million on Sep. 30, 2014. Current ratio was at 1.70 as on Sep. 30, 2015, up from 1.35 on Sep. 30, 2014.
Days sales outstanding were almost stable at 46 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went down to 33 days for the quarter from 36 for the same period last year.
Debt increases substantially Echo Global Logistics has witnessed an increase in total debt over the last one year. It stood at $195 million as on Sep. 30, 2015, up 700.23 percent or $170.63 million from $24.37 million on Sep. 30, 2014. Total debt was 25.46 percent of total assets as on Sep. 30, 2015, compared with 7.43 percent on Sep. 30, 2014. Debt to equity ratio was at 0.50 as on Sep. 30, 2015, up from 0.14 as on Sep. 30, 2014. 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
