FutureFuel Corporation (FF) has reported a 36.99 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $18.68 million, or $0.43 a share in the quarter, compared with $29.65 million, or $0.68 a share for the same period last year. Revenue during the quarter surged 104.81 percent to $69.37 million from $33.87 million in the previous year period. Gross margin for the quarter contracted 6188 basis points over the previous year period to 25.25 percent. Total expenses were 78.70 percent of quarterly revenues, up from 20.04 percent for the same period last year. That has resulted in a contraction of 5866 basis points in operating margin to 21.30 percent.
Operating income for the quarter was $14.78 million, compared with $27.08 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $21.80 million compared with $25.35 million in the prior year period. At the same time, adjusted EBITDA margin contracted 4341 basis points in the quarter to 31.43 percent from 74.85 percent in the last year period.
“Net income in 2016 of $56.3 million demonstrated the resilience of our company against the backdrop of a contracted Agro and Energy chemical market. In biodiesel, while the retail fuels market was less favorable to our operation, we responded to a clearly defined regulatory environment and set a new production record at our Batesville plant. In 2017, we return to a less certain biofuels regulatory landscape which we have successfully worked through in the past. We also anticipate some improvement in our chemicals business." said Tom McKinlay, chief operating officer for FutureFuel Corp.
Operating cash flow improves significantly
FutureFuel Corporation has generated cash of $90.98 million from operating activities during the year, up 129.60 percent or $51.35 million, when compared with the last year. The company has spent $35.21 million cash to meet investing activities during the year as against cash inflow of $2.02 million in the last year.
The company has spent $10.54 million cash to carry out financing activities during the year as against cash outgo of $11.68 million in the last year period.
Cash and cash equivalents stood at $199.27 million as on Dec. 31, 2016, up 29.36 percent or $45.22 million from $154.05 million on Dec. 31, 2015.
Working capital declines
FutureFuel Corporation has witnessed a decline in the working capital over the last year. It stood at $261.23 million as at Dec. 31, 2016, down 16.08 percent or $50.04 million from $311.27 million on Dec. 31, 2015. Current ratio was at 2.81 as on Dec. 31, 2016, down from 7.41 on Dec. 31, 2015.
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