Advanced Disposal Services Inc (ADS) saw its loss widen to $20.10 million, or $0.24 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $8.80 million, or $0.14 a share. On the other hand, adjusted net income for the quarter stood at $17.20 million, or $0.20 a share compared with $5.50 million or $0.08 a share, a year ago. Revenue during the quarter went up marginally by 0.69 percent to $352 million from $349.60 million in the previous year period. Total expenses were 87.73 percent of quarterly revenues, down from 92.85 percent for the same period last year. This has led to an improvement of 512 basis points in operating margin to 12.27 percent.
Operating income for the quarter was $43.20 million, compared with $25 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $107.70 million compared with $101.50 million in the prior year period. At the same time, adjusted EBITDA margin improved 156 basis points in the quarter to 30.60 percent from 29.03 percent in the last year period.
"Advanced Disposal has undergone transformational changes during 2016," said Richard Burke, chief executive officer. "I am pleased we were able to improve our capital structure and begin the next chapter of our company's history as a public company, while at the same time producing strong results for both fourth quarter and the full year 2016. We were also able to continue to execute on our strategy of entering vertically-integrated operations in secondary markets earlier this month by closing on the acquisition of CGS Services, Inc. in Indiana. Overall, the combination of continued execution of our operating strategy, along with capital structure improvements, positions us well to generate strong cash provided by operating activities in 2017."
Operating cash flow falls marginally
Advanced Disposal Services Inc has generated cash of $237 million from operating activities during the year, down 3.07 percent or $7.50 million, when compared with the last year. The company has spent $170.60 million cash to meet investing activities during the year as against cash outgo of $197.40 million in the last year. It has incurred net capital expenditure of $167.70 million on net basis during the year, down 5.31 percent or $9.40 million from year ago.
The company has spent $65.80 million cash to carry out financing activities during the year as against cash outgo of $47.50 million in the last year period.
Cash and cash equivalents stood at $1.20 million as on Dec. 31, 2016, up 100 percent or $0.60 million from $0.60 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Advanced Disposal Services Inc was negative $109.90 million on Dec. 31, 2016 compared with negative $164.70 million on Dec. 31, 2015. Current ratio was at 0.66 as on Dec. 31, 2016, up from 0.56 on Dec. 31, 2015.
Debt comes down
Advanced Disposal Services Inc has recorded a decline in total debt over the last one year. It stood at $1,923.50 million as on Dec. 31, 2016, down 14.40 percent or $323.60 million from $2,247.10 million on Dec. 31, 2015. Total debt was 57.08 percent of total assets as on Dec. 31, 2016, compared with 65.66 percent on Dec. 31, 2015. Debt to equity ratio was at 2.32 as on Dec. 31, 2016, down from 4.59 as on Dec. 31, 2015. Interest coverage ratio improved to 1.57 for the quarter from 0.74 for the same period last year.
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