Compass Minerals International (CMP) has reported 56.74 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $21.50 million, or $0.63 a share in the quarter, compared with $49.70 million, or $1.46 a share for the same period last year.
Revenue during the quarter grew 12.18 percent to $387.80 million from $345.70 million in the previous year period. Gross margin for the quarter contracted 864 basis points over the previous year period to 21.04 percent. Total expenses were 89.32 percent of quarterly revenues, up from 78.51 percent for the same period last year. That has resulted in a contraction of 1082 basis points in operating margin to 10.68 percent.
Operating income for the quarter was $41.40 million, compared with $74.30 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $69.80 million compared with $94.60 million in the prior year period. At the same time, adjusted EBITDA margin contracted 937 basis points in the quarter to 18 percent from 27.36 percent in the last year period.
"While mild winter weather and increased salt cost created challenging conditions for our salt business in the first quarter, I am pleased with the results our plant nutrition business has produced," said Fran Malecha, Compass Minerals’ president and chief executive officer. "We will continue to work diligently across our organization to reduce costs where possible to offset the impact of two consecutive mild winters. In addition, our plant nutrition business is poised for growth, and we are laser-focused on driving increased value from our expanded assets in North and South America."
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $3 to $3.50.
Operating cash flow improves significantlyCompass Minerals International has generated cash of $123.30 million from operating activities during the quarter, up 33.15 percent or $30.70 million, when compared with the last year period. The company has spent $22.30 million cash to meet investing activities during the quarter as against cash outgo of $44.50 million in the last year period.
The company has spent $130.10 million cash to carry out financing activities during the quarter as against cash outgo of $28.70 million in the last year period.
Cash and cash equivalents stood at stood at $48.90 million as at Mar. 31, 2017.
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