Core-Mark Holding Company Inc. (CORE) has reported a 10.60 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $13.50 million in the quarter, compared with $15.10 million for the same period last year.
Revenue during the quarter surged 33.50 percent to $3,993.90 million from $2,991.60 million in the previous year period. Gross margin for the quarter contracted 76 basis points over the previous year period to 4.98 percent. Total expenses were 99.44 percent of quarterly revenues, up from 99.15 percent for the same period last year. That has resulted in a contraction of 29 basis points in operating margin to 0.56 percent.
Operating income for the quarter was $22.20 million, compared with $25.40 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $39.20 million compared with $41.30 million in the prior year period. At the same time, adjusted EBITDA margin contracted 40 basis points in the quarter to 0.98 percent from 1.38 percent in the last year period.
"We have grown at a remarkable pace in the first nine months of 2016, and I am very proud of the accomplishments of this organization. We are well positioned to post record financial results this year. We remain focused on the absorption of the business added thus far and the new business we will be adding through the remainder of the year." said Thomas B. Perkins, President and Chief Executive Officer.
For financial year 2016, Core-Mark Holding Company Inc. expects revenue to be in the range of $14 million to $14.50 million. The company projects diluted earnings per share to be in the range of $1.16 to $1.23.
Operating cash flow turns negative
Core-Mark Holding Company Inc. has spent $57.90 million cash to meet operating activities during the nine month period as against cash inflow of $105.90 million in the last year period.
The company has spent $137.50 million cash to meet investing activities during the nine month period as against cash outgo of $36.60 million in the last year period.
Cash flow from financing activities was $204.50 million for the nine month period as against cash outgo of $72.30 million in the last year period.
Cash and cash equivalents stood at $22.90 million as on Sep. 30, 2016, up 143.62 percent or $13.50 million from $9.40 million on Sep. 30, 2015.
Working capital increases sharply
Core-Mark Holding Company Inc. has recorded an increase in the working capital over the last year. It stood at $561 million as at Sep. 30, 2016, up 73.42 percent or $237.50 million from $323.50 million on Sep. 30, 2015. Current ratio was at 2.07 as on Sep. 30, 2016, up from 1.71 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 12 days for the quarter from 18 days for the last year period. Days sales outstanding went down to 9 days for the quarter compared with 11 days for the same period last year.
Days inventory outstanding has decreased to 6 days for the quarter compared with 13 days for the previous year period. At the same time, days payable outstanding went down to 3 days for the quarter from 5 for the same period last year.
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