CatchMark Timber Trust (CTT) saw its loss widen to $4.94 million, or $0.13 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $3.30 million, or $0.08 a share.
Revenue during the quarter grew 19.46 percent to $20.40 million from $17.08 million in the previous year period.
Cost of revenue surged 35.50 percent or $2.25 million during the quarter to $8.60 million. Gross margin for the quarter contracted 499 basis points over the previous year period to 57.86 percent.
Total expenses were $23.21 million for the quarter, up 20.05 percent or $3.88 million from year-ago period. Operating margin for the quarter stood at negative 13.78 percent as compared to a negative 13.22 percent for the previous year period.
Operating loss for the quarter was $2.81 million, compared with an operating loss of $2.26 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $7.20 million compared with $6.94 million in the prior year period. At the same time, adjusted EBITDA margin contracted 531 basis points in the quarter to 35.31 percent from 40.62 percent in the last year period.
For financial year 2017, CatchMark Timber Trust projects net income to be in the range of $16 million to $17 million.
Jerry Barag, CatchMark's President and chief executive officer, said: “Despite the expected GAAP net loss, we met our goals in 2016 for acquiring high quality timberlands to increase harvest volumes while at the same time achieving operational gains from increased silvicultural productivity to enhance revenues and Adjusted EBITDA. Notably, we realized pricing above South-wide averages in all pine product categories and took advantage of higher pulpwood prices in managing our harvest mix."
Operating cash flow improvesCatchMark Timber Trust has generated cash of $30.85 million from operating activities during the year, up 8.26 percent or $2.36 million, when compared with the last year. The company has spent $144.76 million cash to meet investing activities during the year as against cash outgo of $78.46 million in the last year.
Cash flow from financing activities was $115 million for the year, up 183.06 percent or $74.37 million, when compared with the last year.
Cash and cash equivalents stood at $9.11 million as on Dec. 31, 2016, up 13.50 percent or $1.08 million from $8.02 million on Dec. 31, 2015.
Receivables increase substantially
Net receivables were at $3.88 million as on Dec. 31, 2016, up 51.52 percent or $1.32 million from year-ago.
Total assets grew 18.48 percent or $110.73 million to $709.82 million on Dec. 31, 2016. On the other hand, total liabilities were at $328.75 million as on Dec. 31, 2016, up 74.82 percent or $140.70 million from year-ago.
Return on assets for the quarter stood at negative 0.39 percent as compared to a negative 0.38 percent for the previous year period. Return on equity for the quarter stood at negative 1.30 percent as compared to a negative 0.80 percent for the previous year period.
Debt increases substantiallyTotal debt was at $320.75 million as on Dec. 31, 2016, up 77.16 percent or $139.70 million from year-ago. Shareholders equity stood at $381.07 million as on Dec. 31, 2016, down 7.29 percent or $29.97 million from year-ago. As a result, debt to equity ratio went up 40 basis points to 0.84 percent in the quarter.
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