Ingevity (NGVT) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $7.10 million, or $ 0.17 a share in the quarter, against a net profit of $23.40 million, or $0.56 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $27.20 million, or $0.64 a share compared with $27.40 million or $0.65 a share, a year ago. Revenue during the quarter went down marginally by 1.75 percent to $252 million from $256.50 million in the previous year period. Gross margin for the quarter expanded 189 basis points over the previous year period to 32.14 percent. Total expenses were 93.61 percent of quarterly revenues, up from 82.65 percent for the same period last year. That has resulted in a contraction of 1096 basis points in operating margin to 6.39 percent.
Operating income for the quarter was $16.10 million, compared with $44.50 million in the previous year period.
However, the adjusted EBITDA for the quarter was almost stable at $59.60 million, when compared with the prior year period. At the same time, adjusted EBITDA margin improved 49 basis points in the quarter to 23.65 percent from 23.16 percent in the last year period.
"Ingevity delivered higher adjusted earnings and adjusted EBITDA margins in the third quarter despite slightly lower sales," said Michael Wilson, Ingevitys president and chief executive officer. "The diversity of our businesses, in combination with effective execution in our cost-reduction programs, enabled us to post a strong quarter in line with our expectations."
Ingevity projects revenue to be in the range of $895 million to $905 million for financial year 2016.
Operating cash flow improves significantly
Ingevity has generated cash of $74.60 million from operating activities during the nine month period, up 112.54 percent or $39.50 million, when compared with the last year period. The company has spent $106.70 million cash to meet investing activities during the nine month period as against cash outgo of $63 million in the last year period.
Cash flow from financing activities was $28 million for the nine month period, down 22.65 percent or $8.20 million, when compared with the last year period.
Cash and cash equivalents stood at $27.10 million as on Sep. 30, 2016, down 9.67 percent or $2.90 million from $30 million on Sep. 30, 2015.
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