FutureFuel Corporation (FF) has reported a 67.87 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $3.40 million, or $0.08 a share in the quarter, compared with $10.57 million, or $0.24 a share for the same period last year.
Revenue during the quarter grew 16.03 percent to $54.11 million from $46.64 million in the previous year period. Gross margin for the quarter contracted 1237 basis points over the previous year period to 11.33 percent. Total expenses were 93.58 percent of quarterly revenues, up from 81.71 percent for the same period last year. That has resulted in a contraction of 1187 basis points in operating margin to 6.42 percent.
Operating income for the quarter was $3.48 million, compared with $8.53 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $5.57 million compared with $12.70 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1695 basis points in the quarter to 10.29 percent from 27.24 percent in the last year period.
"Revenues this quarter reflected a strong underlying performance from our business. We are still challenged by the ongoing regulatory vacuum on biodiesel production and the Blenders’ Tax Credit. Resolution of this issue would bring much needed clarity to the industry," said Tom McKinlay, Chief Operating Officer for FutureFuel Corp.
Operating cash flow improves significantly
FutureFuel Corporation has generated cash of $8.28 million from operating activities during the quarter, up 591.90 percent or $7.08 million, when compared with the last year period.
The company has spent $10.06 million cash to meet investing activities during the quarter as against cash outgo of $4.12 million in the last year period.
The company has spent $102.81 million cash to carry out financing activities during the quarter as against cash outgo of $2.81 million in the last year period.
Cash and cash equivalents stood at $94.69 million as on Mar. 31, 2017, down 36.16 percent or $53.63 million from $148.31 million on Mar. 31, 2016.
Working capital declines
FutureFuel Corporation has witnessed a decline in the working capital over the last year. It stood at $267.40 million as at Mar. 31, 2017, down 17.20 percent or $55.54 million from $322.94 million on Mar. 31, 2016. Current ratio was at 8.04 as on Mar. 31, 2017, down from 8.22 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 67 days for the quarter from 215 days for the last year period. Days sales outstanding went down to 69 days for the quarter compared with 127 days for the same period last year.
Days inventory outstanding has decreased to 49 days for the quarter compared with 172 days for the previous year period. At the same time, days payable outstanding went down to 50 days for the quarter from 84 for the same period last year.
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