CARBO Ceramics Inc. (CRR) saw its loss widen to $32.44 million, or $1.22 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $24.68 million, or $1.07 a share.
Revenue during the quarter grew 4.74 percent to $34.67 million from $33.10 million in the previous year period. Gross margin for the quarter stood at negative 56.12 percent as compared to a negative 71.42 percent for the previous year period.
Operating loss for the quarter was $30.26 million, compared with an operating loss of $36.06 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $17.30 million compared to negative $15.38 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 49.88 percent for the quarter compared to negative 46.46 percent in the last year period.
Chief executive officer Gary Kolstad commented, "We are pleased with the 19% sequential increase in revenue experienced in the first quarter of 2017. This revenue increase is a result of our previously outlined strategy of developing higher growth opportunities which we believe will result in strong double-digit revenue growth for CARBO in 2017. The exceptional strengths we have in technology, experienced people, and manufacturing assets support the execution of this strategy. "The increase in technology product sales in this challenging environment highlights the value of our technology platform. "We successfully completed plant trials producing products other than base ceramic proppant, executing on our strategy of utilizing our idled plant assets. The success of these trials should lead to revenue generation."
Working capital decreases marginally
CARBO Ceramics Inc. has witnessed a decline in the working capital over the last year. It stood at $167.79 million as at Mar. 31, 2017, down 3.36 percent or $5.83 million from $173.62 million on Mar. 31, 2016. Current ratio was at 8.83 as on Mar. 31, 2017, up from 5.09 on Mar. 31, 2016.
Days sales outstanding went down to 63 days for the quarter compared with 153 days for the same period last year.
Debt moves up
CARBO Ceramics Inc. has witnessed an increase in total debt over the last one year. It stood at $72.96 million as on Mar. 31, 2017, up 12.24 percent or $7.96 million from $65 million on Mar. 31, 2016. Total debt was 10.55 percent of total assets as on Mar. 31, 2017, compared with 8.56 percent on Mar. 31, 2016. Debt to equity ratio was at 0.12 as on Mar. 31, 2017, up from 0.10 as on Mar. 31, 2016.
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