Cott Corporation (COT) swung to a net loss for the quarter ended Oct. 01, 2016. The company has made a net loss of $3.90 million, or $ 0.03 a share in the quarter, against a net profit of $4.80 million, or $0.04 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $12.60 million, or $0.09 a share compared with $10.10 million or $0.09 a share, a year ago.
Revenue during the quarter grew 17.14 percent to $885.10 million from $755.60 million in the previous year period. Gross margin for the quarter expanded 378 basis points over the previous year period to 34.55 percent. Total expenses were 96.09 percent of quarterly revenues, down from 96.21 percent for the same period last year. This has led to an improvement of 12 basis points in operating margin to 3.91 percent.
Operating income for the quarter was $34.60 million, compared with $28.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $110.80 million compared with $94.50 million in the prior year period. At the same time, adjusted EBITDA margin improved 1 basis points in the quarter to 12.52 percent from 12.51 percent in the last year period.
"During the quarter we made significant progress in the continued transformation of our business towards a more diversified and higher margin beverage company with the closing of both the Eden and S&D acquisitions," commented Jerry Fowden, Cott's Chief Executive Officer.
Operating cash flow falls marginally
Cott Corporation has generated cash of $160.50 million from operating activities during the nine month period, down 3.55 percent or $5.90 million, when compared with the last year period.
The company has spent $1,059.20 million cash to meet investing activities during the nine month period as against cash outgo of $69.80 million in the last year period. It has incurred net capital expenditure of $101.90 million on net basis during the nine month period, up 115.43 percent or $54.60 million from year ago period.
Cash flow from financing activities was $944.70 million for the nine month period as against cash outgo of $116.70 million in the last year period.
Cash and cash equivalents stood at $118.90 million as on Oct. 01, 2016, up 86.66 percent or $55.20 million from $63.70 million on Oct. 03, 2015.
Working capital declines
Cott Corporation has witnessed a decline in the working capital over the last year. It stood at $69 million as at Oct. 01, 2016, down 22.21 percent or $19.70 million from $88.70 million on Oct. 03, 2015. Current ratio was at 1.08 as on Oct. 01, 2016, down from 1.15 on Oct. 03, 2015.
Days sales outstanding went up to 43 days for the quarter compared with 42 days for the same period last year.
Days inventory outstanding has decreased to 25 days for the quarter compared with 45 days for the previous year period.
Debt increases substantially
Cott Corporation has witnessed an increase in total debt over the last one year. It stood at $2,288.20 million as on Oct. 01, 2016, up 34.32 percent or $584.60 million from $1,703.60 million on Oct. 03, 2015. Total debt was 55.61 percent of total assets as on Oct. 01, 2016, compared with 57.26 percent on Oct. 03, 2015. Debt to equity ratio was at 2.34 as on Oct. 01, 2016, down from 2.57 as on Oct. 03, 2015.
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