Celadon Group, Inc. (CGI) has reported an 80.57 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $1.28 million, or $0.05 a share in the quarter, compared with $6.62 million, or $0.24 a share for the same period last year.
Revenue during the quarter dropped 3.51 percent to $265.72 million from $275.40 million in the previous year period. Gross margin for the quarter contracted 494 basis points over the previous year period to 77.95 percent. Total expenses were 98.92 percent of quarterly revenues, up from 94.89 percent for the same period last year. That has resulted in a contraction of 403 basis points in operating margin to 1.08 percent.
Operating income for the quarter was $2.87 million, compared with $14.08 million in the previous year period.
Working capital turns negative
Working capital of Celadon Group, Inc. has turned negative to $13.27 million on Dec. 31, 2016 from positive $133.52 million on Dec. 31, 2015. Current ratio was at 0.94 as on Dec. 31, 2016, down from 1.64 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 20 days for the quarter from 15 days for the last year period. Days sales outstanding went down to 48 days for the quarter compared with 49 days for the same period last year.
Days inventory outstanding has decreased to 3 days for the quarter compared with 5 days for the previous year period. At the same time, days payable outstanding went down to 31 days for the quarter from 39 for the same period last year.
Debt comes down significantly
Celadon Group, Inc. has recorded a decline in total debt over the last one year. It stood at $380.47 million as on Dec. 31, 2016, down 28.27 percent or $149.95 million from $530.42 million on Dec. 31, 2015. Total debt was 38.75 percent of total assets as on Dec. 31, 2016, compared with 45.36 percent on Dec. 31, 2015. Debt to equity ratio was at 1.03 as on Dec. 31, 2016, down from 1.44 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 0.96 for the quarter from 3.75 for the same period last year.
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