The Andersons, Inc (ANDE) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $1.72 million, or $ 0.06 a share in the quarter, against a net loss of $1.23 million, or $0.04 a share in the last year period. Revenue during the quarter dropped 5.44 percent to $859.61 million from $909.09 million in the previous year period. Gross margin for the quarter contracted 41 basis points over the previous year period to 8.96 percent. Operating margin for the quarter stood at negative 0.20 percent as compared to a negative 0.39 percent for the previous year period.
Operating loss for the quarter was $1.75 million, compared with an operating loss of $3.51 million in the previous year period.
“Conditions are improving for our Grain Group and margins are strong for the Ethanol Group, but challenges persist with our Plant Nutrient Group facing weak margins and our Rail Group continuing to experience softening in utilization,” said Chief executive officer Pat Bowe. “In this mixed environment, the team is making good progress on our $10 million cost reduction initiative and continuing to take action on the items within our control to combat uncertainty in some of our markets.”
Working capital increases sharply
The Andersons, Inc has recorded an increase in the working capital over the last year. It stood at $230.88 million as at Sep. 30, 2016, up 26.10 percent or $47.78 million from $183.10 million on Sep. 30, 2015. Current ratio was at 1.42 as on Sep. 30, 2016, up from 1.25 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 26 days for the quarter from 54 days for the last year period. Days sales outstanding were almost stable at 22 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 25 days for the quarter compared with 58 days for the previous year period. At the same time, days payable outstanding went down to 21 days for the quarter from 26 for the same period last year.
Debt comes down
The Andersons, Inc has recorded a decline in total debt over the last one year. It stood at $447.08 million as on Sep. 30, 2016, down 14.57 percent or $76.27 million from $523.35 million on Sep. 30, 2015. Total debt was 22.53 percent of total assets as on Sep. 30, 2016, compared with 23.88 percent on Sep. 30, 2015. Debt to equity ratio was at 0.57 as on Sep. 30, 2016, down from 0.65 as on Sep. 30, 2015. 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
