Axalta Coating Systems (AXTA) has reported an 107.44 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $64.10 million, or $0.26 a share in the quarter, compared with $30.90 million, or $0.13 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $63.10 million, or $0.26 a share compared with $43 million or $0.18 a share, a year ago.

Revenue during the quarter grew 5.42 percent to $1,013.70 million from $961.60 million in the previous year period. Gross margin for the quarter contracted 18 basis points over the previous year period to 36.76 percent. Total expenses were 89.15 percent of quarterly revenues, down from 89.26 percent for the same period last year. This has led to an improvement of 11 basis points in operating margin to 10.85 percent.

Operating income for the quarter was $110 million, compared with $103.30 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $203.10 million compared with $194.80 million in the prior year period. At the same time, adjusted EBITDA margin contracted 22 basis points in the quarter to 20.04 percent from 20.26 percent in the last year period.

"Axalta's financial and operating performance has started the year well on plan, with top-line growth at the high end of our expectations and continued success in our operating, productivity and acquisition initiatives," said Charles W. Shaver, Axalta's chairman and chief executive officer. "We are thrilled by our agreement to purchase the industrial wood coatings business from Valspar and by the opportunity that this deal and others we have recently closed give us to further extend our growth and competitive position in Performance Coatings."

Axalta Coating Systems forecasts revenue to grow in the range of 1 percent to 3 percent for the fiscal year 2017.

Axalta Coating Systems has spent $6.50 million cash to meet operating activities during the quarter as against cash outgo of $13.30 million in the last year period.

The company has spent $89.40 million cash to meet investing activities during the quarter as against cash outgo of $43.20 million in the last year period.

The company has spent $2.80 million cash to carry out financing activities during the quarter as against cash outgo of $7 million in the last year period.

Cash and cash equivalents stood at $439.10 million as on Mar. 31, 2017, up 4.67 percent or $19.60 million from $419.50 million on Mar. 31, 2016.

Working capital decreases marginally

Axalta Coating Systems has witnessed a decline in the working capital over the last year. It stood at $1,083.90 million as at Mar. 31, 2017, down 1.18 percent or $12.90 million from $1,096.80 million on Mar. 31, 2016. Current ratio was at 2.27 as on Mar. 31, 2017, down from 2.40 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 48 days for the quarter from 89 days for the last year period. Days sales outstanding went down to 73 days for the quarter compared with 74 days for the same period last year.

Days inventory outstanding has decreased to 39 days for the quarter compared with 81 days for the previous year period. At the same time, days payable outstanding went down to 64 days for the quarter from 66 for the same period last year.