Compass Diversified Holdings (CODI) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $1.76 million, or $ 0.14 a share in the quarter, against a net loss of $2.22 million, or $0.39 a share in the last year period. Revenue during the quarter surged 59.65 percent to $318.56 million from $199.53 million in the previous year period. Gross margin for the quarter contracted 152 basis points over the previous year period to 32.45 percent. Operating margin for the quarter stood at negative 3.41 percent as compared to a positive 8.22 percent for the previous year period.
Operating loss for the quarter was $10.87 million, compared with an operating income of $16.40 million in the previous year period.
"Our niche industrial and branded consumer businesses generated solid levels of cash flow for the fourth quarter and full year 2016," stated Alan Offenberg, chief executive officer of Compass Diversified Holdings. "Results at our Sterno Products, ERGObaby, Manitoba Harvest and 5.11 subsidiaries were especially strong during the fourth quarter, with each reporting year-over-year, double-digit revenue and EBITDA growth."
Operating cash flow improves significantlyCompass Diversified Holdings has generated cash of $111.37 million from operating activities during the year, up 31.73 percent or $26.82 million, when compared with the last year. The company has spent $363.02 million cash to meet investing activities during the year as against cash inflow of $233.88 million in the last year.
Cash flow from financing activities was $208.73 million for the year as against cash outgo of $254.36 million in the last year period.
Cash and cash equivalents stood at $39.77 million as on Dec. 31, 2016, down 53.68 percent or $46.10 million from $85.87 million on Dec. 31, 2015.
Debt increases substantially
Compass Diversified Holdings has witnessed an increase in total debt over the last one year. It stood at $557.34 million as on Dec. 31, 2016, up 78.70 percent or $245.45 million from $311.89 million on Dec. 31, 2015.
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