Compass Minerals International (CMP) has reported 67.12 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $97.60 million, or $2.87 a share in the quarter, compared with $58.40 million, or $1.72 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $46.10 million, or $1.35 a share compared with $58.40 million or $1.72 a share, a year ago.
Revenue during the quarter surged 53.20 percent to $443.20 million from $289.30 million in the previous year period. Gross margin for the quarter contracted 907 basis points over the previous year period to 24.91 percent. Total expenses were 85.27 percent of quarterly revenues, up from 75.15 percent for the same period last year. That has resulted in a contraction of 1012 basis points in operating margin to 14.73 percent.
Operating income for the quarter was $65.30 million, compared with $71.90 million in the previous year period.
However, the adjusted operating income for the quarter stood at $76.80 million compared to $71.90 million in the prior year period. At the same time, adjusted operating margin contracted 752 basis points in the quarter to 17.33 percent from 24.85 percent in the last year period.
"Each of our key businesses ended the year with positive momentum based on improving market conditions. We’ve experienced more typical winter weather, which is driving salt sales volumes above prior year, and demand for our portfolio of specialty plant nutrients was robust in South America and improved in North America," said Fran Malecha, Compass Minerals’ president and chief executive officer. "As we enter 2017, we expect to build on this momentum, capitalize on improving underlying market fundamentals and continue executing on our strategy to diversify and strengthen our company."
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $3.20 to $3.70.
Operating cash flow improves significantlyCompass Minerals International has generated cash of $175.10 million from operating activities during the year, up 26.98 percent or $37.20 million, when compared with the last year. The company has spent $465.40 million cash to meet investing activities during the year as against cash outgo of $335.40 million in the last year.
Cash flow from financing activities was $306.80 million for the year, up 2,060.56 percent or $292.60 million, when compared with the last year.
Cash and cash equivalents stood at $77.40 million as on Dec. 31, 2016, up 32.53 percent or $19 million from $58.40 million on Dec. 31, 2015.
Debt increases substantiallyCompass Minerals International has witnessed an increase in total debt over the last one year. It stood at $1,327.80 million as on Dec. 31, 2016, up 82.64 percent or $600.80 million from $727 million on Dec. 31, 2015. Total debt was 53.78 percent of total assets as on Dec. 31, 2016, compared with 44.63 percent on Dec. 31, 2015. Debt to equity ratio was at 1.84 as on Dec. 31, 2016, up from 1.14 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 3.77 for the quarter from 13.31 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
