Empire Resources, Inc. (ERS) has reported an 181.90 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $0.89 million, or $0.10 a share in the quarter, compared with $0.32 million, or $0.04 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $0.89 million, or $0.10 a share compared with $0.51 million or $0.06 a share, a year ago.
Revenue during the quarter dropped 6.85 percent to $113.60 million from $121.95 million in the previous year period. Gross margin for the quarter expanded 47 basis points over the previous year period to 4.85 percent. Total expenses were 98.08 percent of quarterly revenues, down from 98.15 percent for the same period last year. This has led to an improvement of 7 basis points in operating margin to 1.92 percent.
Operating income for the quarter was $2.18 million, compared with $2.25 million in the previous year period.
Operating cash flow improves
Empire Resources, Inc. has generated cash of $41.77 million from operating activities during the nine month period, up 6.40 percent or $2.51 million, when compared with the last year period.
The company has spent $0.16 million cash to meet investing activities during the nine month period as against cash inflow of $2.26 million in the last year period
The company has spent $43.08 million cash to carry out financing activities during the nine month period as against cash outgo of $37.07 million in the last year period.
Cash and cash equivalents stood at $5.72 million as on Sep. 30, 2016, up 3.31 percent or $0.18 million from $5.54 million on Sep. 30, 2015.
Working capital increases
Empire Resources, Inc. has recorded an increase in the working capital over the last year. It stood at $47.45 million as at Sep. 30, 2016, up 5.51 percent or $2.48 million from $44.97 million on Sep. 30, 2015. Current ratio was at 1.32 as on Sep. 30, 2016, up from 1.22 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 88 days for the quarter from 166 days for the last year period. Days sales outstanding were almost stable at 61 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 50 days for the quarter compared with 125 days for the previous year period. At the same time, days payable outstanding went up to 23 days for the quarter from 20 for the same period last year.
Debt comes down significantly
Empire Resources, Inc. has recorded a decline in total debt over the last one year. It stood at $113.59 million as on Sep. 30, 2016, down 35.87 percent or $63.53 million from $177.12 million on Sep. 30, 2015. Long-term debt stood at $4.77 million as on Sep. 30, 2016. Total debt was 55.90 percent of total assets as on Sep. 30, 2016, compared with 68.53 percent on Sep. 30, 2015. Debt to equity ratio was at 2.27 as on Sep. 30, 2016, down from 3.64 as on Sep. 30, 2015.
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