Multi Packaging Solutions International Limited (MPSX) has reported an 1.86 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $13.25 million, or $0.17 a share in the quarter, compared with $13.01 million, or $0.21 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $12.68 million, or $0.17 a share compared with $18.18 million or $0.29 a share, a year ago. Revenue during the quarter dropped 11.16 percent to $407.82 million from $459.05 million in the previous year period. Gross margin for the quarter contracted 96 basis points over the previous year period to 20.68 percent. Total expenses were 93.20 percent of quarterly revenues, up from 91.14 percent for the same period last year. That has resulted in a contraction of 206 basis points in operating margin to 6.80 percent.
Operating income for the quarter was $27.73 million, compared with $40.68 million in the previous year period.
However, the adjusted operating income for the quarter stood at $30.62 million compared to $43.65 million in the prior year period. At the same time, adjusted operating margin contracted 200 basis points in the quarter to 7.51 percent from 9.51 percent in the last year period.
Marc Shore, chief executive officer, commented, "As we expected, the first quarter was challenging due to the headwinds that were previously discussed: continued negative impact of foreign exchange rates, the discontinuation of a specific toy program, the exit from the tobacco business and the continued decline in multimedia sales. Furthermore, we continued to struggle at four facilities, and some of our core customers had weaker sales than budgeted. As previously noted, we will cycle through all of these challenges by the end of our fiscal second quarter, except for foreign exchange and media declines. Notwithstanding these headwinds, there were significant accomplishments in the quarter."
Operating cash flow drops significantly
Multi Packaging Solutions International Limited has generated cash of $15.06 million from operating activities during the quarter, down 54.38 percent or $ 17.96 million, when compared with the last year period. The company has spent $6.63 million cash to meet investing activities during the quarter as against cash outgo of $14.77 million in the last year period. It has incurred net capital expenditure of $6.63 million on net basis during the quarter, down 44.83 percent or $5.39 million from year ago period.
The company has spent $2.87 million cash to carry out financing activities during the quarter as against cash outgo of $2.58 million in the last year period.
Cash and cash equivalents stood at $50.57 million as on Sep. 30, 2016, down 32.82 percent or $24.71 million from $75.28 million on Sep. 30, 2015.
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