Platform Specialty Products Corporation (PAH) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $4 million, or $ 0.01 a share in the quarter, against a net loss of $130 million, or $0.60 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $61 million, or $0.20 a share compared with $41 million or $0.14 a share, a year ago.
Revenue during the quarter grew 29.25 percent to $950 million from $735 million in the previous year period. Gross margin for the quarter expanded 454 basis points over the previous year period to 41.68 percent. Operating margin for the quarter period stood at positive 2.74 percent as compared to a negative 0.82 percent for the previous year period.
Operating income for the quarter was $26 million, compared with an operating loss of $6 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $218 million compared with $154 million in the prior year period. At the same time, adjusted EBITDA margin improved 199 basis points in the quarter to 22.95 percent from 20.95 percent in the last year period.
Platform's chief executive officer Rakesh Sachdev stated: "2016 was a successful year for Platform in a number of ways. Our revenue growth accelerated significantly in the second half of the year, and our business overall demonstrated resilience in mixed end markets. We exceeded our adjusted EBITDA target, generating comparable adjusted EBITDA growth of nearly 6% for the full year on a constant currency basis. Our strong earnings translated into cash flow from operations of $185 million. Furthermore, we improved our balance sheet meaningfully with the settlement of all our obligations related to our Series B convertible preferred stock, which resulted in savings of approximately $100 million, and the repricing of all of our term loans, which we expect to generate annual interest savings of $26 million. Finally, we stabilized our management team with a number of key hires who have already made significant contributions to the Company."
Operating cash flow drops significantly
Platform Specialty Products Corporation has generated cash of $185 million from operating activities during the year, down 42.37 percent or $136 million, when compared with the last year.
The company has spent $75 million cash to meet investing activities during the year as against cash outgo of $4,257 million in the last year. It has incurred net capital expenditure of $35 million on net basis during the year, up 59.09 percent or $13 million from year ago.
The company has spent $102 million cash to carry out financing activities during the year as against cash inflow of $4,001 million in the last year period.
Cash and cash equivalents stood at $423 million as on Dec. 31, 2016, down 2.08 percent or $9 million from $432 million on Dec. 31, 2015.
Debt remains almost stable
Total debt of Platform Specialty Products Corporation remained almost stable for the quarter at $5,239 million, when compared with the last year period. Total debt was 52.18 percent of total assets as on Dec. 31, 2016, compared with 51.31 percent on Dec. 31, 2015. Debt to equity ratio was at 1.81 as on Dec. 31, 2016, down from 2.30 as on Dec. 31, 2015.
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