Alico Inc (ALCO) has reported a 33.22 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $5.83 million, or $0.70 a share in the quarter, compared with $8.73 million, or $1.05 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $5.40 million, or $0.65 a share compared with $8.46 million or $1.02 a share, a year ago. Revenue during the quarter dropped 21.82 percent to $56.20 million from $71.89 million in the previous year period. Gross margin for the quarter contracted 132 basis points over the previous year period to 25.83 percent. Total expenses were 80.22 percent of quarterly revenues, up from 76.82 percent for the same period last year. That has resulted in a contraction of 340 basis points in operating margin to 19.78 percent.
Operating income for the quarter was $11.12 million, compared with $16.67 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $15.66 million compared with $20.88 million in the prior year period. At the same time, adjusted EBITDA margin contracted 116 basis points in the quarter to 27.87 percent from 29.04 percent in the last year period.
Operating cash flow turns negative
Alico Inc has spent $2.75 million cash to meet operating activities during the first half as against cash inflow of $12.14 million in the last year period. The company has spent $2.23 million cash to meet investing activities during the first six months as against cash outgo of $5.79 million in the last year period.
The company has spent $0.60 million cash to carry out financing activities during the first six months as against cash outgo of $8.27 million in the last year period.
Cash and cash equivalents stood at $1.04 million as on Mar. 31, 2017, down 70.44 percent or $2.48 million from $3.52 million on Mar. 31, 2016.
Working capital increases sharply
Alico Inc has recorded an increase in the working capital over the last year. It stood at $68.25 million as at Mar. 31, 2017, up 33.34 percent or $17.07 million from $51.19 million on Mar. 31, 2016. Current ratio was at 5.47 as on Mar. 31, 2017, up from 2.90 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 79 days for the quarter from 112 days for the last year period. Days sales outstanding went up to 32 days for the quarter compared with 27 days for the same period last year.
Days inventory outstanding has decreased to 57 days for the quarter compared with 93 days for the previous year period. At the same time, days payable outstanding went up to 10 days for the quarter from 9 for the same period last year.
Debt comes down marginally
Alico Inc has recorded a decline in total debt over the last one year. It stood at $201.97 million as on Mar. 31, 2017, down 1.94 percent or $3.99 million from $205.96 million on Mar. 31, 2016. Total debt was 43.91 percent of total assets as on Mar. 31, 2017, compared with 44.40 percent on Mar. 31, 2016. Debt to equity ratio was at 1.11 as on Mar. 31, 2017, down from 1.16 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 4.68 for the quarter from 6.73 for the same period last year.
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