Libbey Inc. (LBY) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $2.25 million, or $ 0.10 a share in the quarter, against a net profit of $32.11 million, or $1.45 a share in the last year period.
Revenue during the quarter dropped 6.05 percent to $206.64 million from $219.96 million in the previous year period. Gross margin for the quarter expanded 317 basis points over the previous year period to 16.47 percent. Operating margin for the quarter period stood at positive 3.09 percent as compared to a negative 2.03 percent for the previous year period.
Operating income for the quarter was $6.39 million, compared with an operating loss of $4.46 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $22.79 million compared with $30.96 million in the prior year period. At the same time, adjusted EBITDA margin contracted 305 basis points in the quarter to 11.03 percent from 14.07 percent in the last year period.
"Fourth quarter results continued to be impacted by the recent trends we've observed in our foodservice and retail channels, consistent with the activity that we saw in the preceding quarter," said William A. Foley, chairman and chief executive officer of Libbey Inc. "Foodservice unit volumes increased slightly, despite the impact of a Toledo work stoppage and an ongoing decline in restaurant traffic trends. By executing against our business strategy, we have continued to outperform our industry, and we are encouraged by indications that Libbey is continuing to win market share amidst a challenging, competitive environment."
Operating cash flow improves significantly
Libbey Inc. has generated cash of $82.64 million from operating activities during the year, up 25.03 percent or $16.54 million, when compared with the last year.
The company has spent $34.60 million cash to meet investing activities during the year as against cash outgo of $48.13 million in the last year.
The company has spent $34.72 million cash to carry out financing activities during the year as against cash outgo of $26.40 million in the last year period.
Cash and cash equivalents stood at $61.01 million as on Dec. 31, 2016, up 24.40 percent or $11.97 million from $49.04 million on Dec. 31, 2015.
Working capital remains almost stable
Working capital of Libbey Inc. remained almost stable for the quarter at $176.83 million, when compared with the previous year period. Current ratio was at 2.13 as on Dec. 31, 2016, up from 2.08 on Dec. 31, 2015.
Cash conversion cycle (CCC) was almost stable at 45 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 19 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 45 days for the quarter compared with 43 days for the previous year period. At the same time, days payable outstanding went up to 19 days for the quarter from 17 for the same period last year.
Debt comes down
Libbey Inc. has recorded a decline in total debt over the last one year. It stood at $407.84 million as on Dec. 31, 2016, down 5.38 percent or $23.18 million from $431.02 million on Dec. 31, 2015. Total debt was 49.85 percent of total assets as on Dec. 31, 2016, compared with 50.56 percent on Dec. 31, 2015. Debt to equity ratio was at 2.81 as on Dec. 31, 2016, down from 2.90 as on Dec. 31, 2015.
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