Atwood Oceanics Inc (ATW) has reported a 75.25 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $9.67 million, or $0.15 a share in the quarter, compared with $39.08 million, or $0.60 a share for the same period last year.
Revenue during the quarter plunged 48.82 percent to $157.56 million from $307.82 million in the previous year period. Gross margin for the quarter expanded 76 basis points over the previous year period to 58.32 percent. Total expenses were 82 percent of quarterly revenues, down from 85.03 percent for the same period last year. This has led to an improvement of 303 basis points in operating margin to 18 percent.
Operating income for the quarter was $28.35 million, compared with $46.08 million in the previous year period.
Operating cash flow drops significantly
Atwood Oceanics Inc has generated cash of $83.50 million from operating activities during the quarter, down 62.07 percent or $ 136.65 million, when compared with the last year period.
The company has spent $138.81 million cash to meet investing activities during the quarter as against cash outgo of $131.55 million in the last year period.
Cash flow from financing activities was $70 million for the quarter as against cash outgo of $86.92 million in the last year period.
Cash and cash equivalents stood at $160.11 million as on Dec. 31, 2016, up 38.42 percent or $44.44 million from $115.67 million on Dec. 31, 2015.
Working capital declines
Atwood Oceanics Inc has witnessed a decline in the working capital over the last year. It stood at $333.39 million as at Dec. 31, 2016, down 16.85 percent or $67.56 million from $400.95 million on Dec. 31, 2015. Current ratio was at 7.08 as on Dec. 31, 2016, up from 4.45 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 136 days for the quarter from 132 days for the last year period. Days sales outstanding went up to 123 days for the quarter compared with 87 days for the same period last year.
Days inventory outstanding has decreased to 77 days for the quarter compared with 90 days for the previous year period. At the same time, days payable outstanding went up to 65 days for the quarter from 44 for the same period last year.
Debt comes down
Atwood Oceanics Inc has recorded a decline in total debt over the last one year. It stood at $1,298 million as on Dec. 31, 2016, down 19.30 percent or $310.40 million from $1,608.40 million on Dec. 31, 2015. Atwood Oceanics has recorded a decline in long-term debt over the last one year. It stood at $1,298 million as on Dec. 31, 2016, down 19.30 percent or $310.40 million from $1,608.40 million on Dec. 31, 2015. Total debt was 28.04 percent of total assets as on Dec. 31, 2016, compared with 33.87 percent on Dec. 31, 2015. Debt to equity ratio was at 0.40 as on Dec. 31, 2016, down from 0.54 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.74 for the quarter from 3.35 for the same period last year.
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