Cott Corporation (COT) saw its loss widen to $78 million, or $0.56 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $4.40 million, or $0.04 a share. On the other hand, adjusted net income for the quarter stood at $1.70 million, or $0.01 a share compared with $3 million or $0.03 a share, a year ago.
Revenue during the quarter grew 26.99 percent to $887.40 million from $698.80 million in the previous year period. Gross margin for the quarter expanded 237 basis points over the previous year period to 34.01 percent. Operating margin for the quarter stood at negative 0.42 percent as compared to a positive 2.58 percent for the previous year period.
Operating loss for the quarter was $3.70 million, compared with an operating income of $18 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $86.50 million compared with $80.50 million in the prior year period. At the same time, adjusted EBITDA margin contracted 177 basis points in the quarter to 9.75 percent from 11.52 percent in the last year period.
"I am pleased with the progress made in 2016 towards a more diversified, higher margin, cash generative business. Our adjusted free cash flow generation of $150 million despite almost $20 million of adverse foreign exchange impact demonstrates the progress made during the year," commented Jerry Fowden, Cott's chief executive officer. "We believe our focus on free cash flow generation and the platform we are creating in home and office services for water, coffee and tea will provide strong annual growth in free cash flow over the coming years."
Operating cash flow improves
Cott Corporation has generated cash of $269.80 million from operating activities during the year, up 5.97 percent or $15.20 million, when compared with the last year.
The company has spent $1,096.60 million cash to meet investing activities during the year as against cash outgo of $99.70 million in the last year. It has incurred net capital expenditure of $139.10 million on net basis during the year, up 86.71 percent or $64.60 million from year ago.
Cash flow from financing activities was $875.70 million for the year as against cash outgo of $160.10 million in the last year period.
Cash and cash equivalents stood at $118.10 million as on Dec. 31, 2016, up 53.18 percent or $41 million from $77.10 million on Jan. 02, 2016.
Working capital drops significantly
Cott Corporation has witnessed a decline in the working capital over the last year. It stood at $43.10 million as at Dec. 31, 2016, down 42.99 percent or $32.50 million from $75.60 million on Jan. 02, 2016. Current ratio was at 1.05 as on Dec. 31, 2016, down from 1.13 on Jan. 02, 2016.
Debt increases substantially
Cott Corporation has witnessed an increase in total debt over the last one year. It stood at $2,200.70 million as on Dec. 31, 2016, up 33.31 percent or $549.90 million from $1,650.80 million on Jan. 02, 2016. Total debt was 55.86 percent of total assets as on Dec. 31, 2016, compared with 57.17 percent on Jan. 02, 2016. Debt to equity ratio was at 2.52 as on Dec. 31, 2016, down from 2.56 as on Jan. 02, 2016.
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