ArcBest Corporation (ABFS) has reported 32.44 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $12.94 million, or $0.49 a share in the quarter, compared with $19.15 million, or $0.72 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $12.68 million, or $0.48 a share compared with $20.23 million or $0.76 a share, a year ago. Revenue during the quarter went up marginally by 0.64 percent to $713.92 million from $709.38 million in the previous year period. Total expenses were 97.15 percent of quarterly revenues, up from 95.29 percent for the same period last year. That has resulted in a contraction of 186 basis points in operating margin to 2.85 percent.
Operating income for the quarter was $20.37 million, compared with $33.44 million in the previous year period.
However, the adjusted operating income for the quarter stood at $21.73 million compared to $34.20 million in the prior year period.
“As we have seen throughout the year, pricing in the less-than-truckload sector remained rational despite a soft economic environment and we continued to experience benefits from investments in new equipment,” said ArcBest Chairman, President and Chief executive officer Judy R. McReynolds. “In addition, we continued to expand our asset-light logistics service offerings with the acquisition of Logistics & Distribution Services, as we add further scale to the full supply chain solutions our customers are seeking.”
Operating cash flow drops significantly
ArcBest Corporation has generated cash of $87.93 million from operating activities during the nine month period, down 26.47 percent or $31.65 million, when compared with the last year period. The company has spent $68.68 million cash to meet investing activities during the nine month period as against cash outgo of $84.44 million in the last year period. It has incurred net capital expenditure of $43.87 million on net basis during the nine month period, up 8.61 percent or $3.48 million from year ago period.
The company has spent $53.83 million cash to carry out financing activities during the nine month period as against cash outgo of $0.53 million in the last year period.
Cash and cash equivalents stood at $130.40 million as on Sep. 30, 2016, down 31.96 percent or $61.25 million from $191.65 million on Sep. 30, 2015.
Working capital drops significantly
ArcBest Corporation has witnessed a decline in the working capital over the last year. It stood at $133.83 million as at Sep. 30, 2016, down 32.59 percent or $64.71 million from $198.54 million on Sep. 30, 2015. Current ratio was at 1.34 as on Sep. 30, 2016, down from 1.52 on Sep. 30, 2015.
Days sales outstanding were almost stable at 33 days for the quarter, when compared with the last year period.
Debt moves up
ArcBest Corporation has witnessed an increase in total debt over the last one year. It stood at $237.61 million as on Sep. 30, 2016, up 24.01 percent or $46.01 million from $191.60 million on Sep. 30, 2015. Total debt was 17.99 percent of total assets as on Sep. 30, 2016, compared with 15.40 percent on Sep. 30, 2015. Debt to equity ratio was at 0.40 as on Sep. 30, 2016, up from 0.33 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 15.72 for the quarter from 28.90 for the same period last year. 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
