Mercer International Inc (MERC) has reported a 10.91 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $9.73 million, or $0.15 a share in the quarter, compared with $8.77 million, or $0.14 a share for the same period last year. Revenue during the quarter dropped 4.36 percent to $242.78 million from $253.84 million in the previous year period. Gross margin for the quarter expanded 635 basis points over the previous year period to 28.76 percent. Total expenses were 83.12 percent of quarterly revenues, down from 88.93 percent for the same period last year. This has led to an improvement of 581 basis points in operating margin to 16.88 percent.
Operating income for the quarter was $40.99 million, compared with $28.10 million in the previous year period.
Operating cash flow declines
Mercer International Inc has generated cash of $53.38 million from operating activities during the quarter, down 15.88 percent or $ 10.08 million, when compared with the last year period. The company has spent $8.40 million cash to meet investing activities during the quarter as against cash outgo of $7.56 million in the last year period.
Cash flow from financing activities was $1.57 million for the quarter as against cash outgo of $30.98 million in the last year period.
Cash and cash equivalents stood at $183.58 million as on Mar. 31, 2017, up 31.55 percent or $44.03 million from $139.55 million on Mar. 31, 2016.
Working capital increases
Mercer International Inc has recorded an increase in the working capital over the last year. It stood at $354.19 million as at Mar. 31, 2017, up 20.92 percent or $61.27 million from $292.91 million on Mar. 31, 2016. Current ratio was at 4.59 as on Mar. 31, 2017, up from 3.38 on Mar. 31, 2016.
Days sales outstanding went up to 50 days for the quarter compared with 49 days for the same period last year.
Days inventory outstanding has decreased to 33 days for the quarter compared with 63 days for the previous year period.
Debt moves up marginally
Mercer International Inc has witnessed an increase in total debt over the last one year. It stood at $638.73 million as on Mar. 31, 2017, up 3.70 percent or $22.76 million from $615.97 million on Mar. 31, 2016. Mercer International has witnessed an increase in long-term debt over the last one year. It stood at $638.73 million as on Mar. 31, 2017, up 3.70 percent or $22.76 million from $615.97 million on Mar. 31, 2016. Total debt was 53.14 percent of total assets as on Mar. 31, 2017, compared with 49.74 percent on Mar. 31, 2016. Debt to equity ratio was at 1.62 as on Mar. 31, 2017, up from 1.41 as on Mar. 31, 2016. Interest coverage ratio improved to 2.95 for the quarter from 2.13 for the same period last year.
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