Polyone Corp (POL) has reported a 19.95 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $46.90 million, or $0.57 a share in the quarter, compared with $39.10 million, or $0.46 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $48.80 million, or $0.59 a share compared with $48.20 million or $0.56 a share, a year ago.
Revenue during the quarter grew 6.12 percent to $898.80 million from $847 million in the previous year period. Gross margin for the quarter contracted 105 basis points over the previous year period to 20.85 percent. Total expenses were 90.94 percent of quarterly revenues, down from 91.58 percent for the same period last year. This has led to an improvement of 64 basis points in operating margin to 9.06 percent.
Operating income for the quarter was $81.40 million, compared with $71.30 million in the previous year period.
However, the adjusted operating income for the quarter stood at $84.50 million compared to $85.10 million in the prior year period. At the same time, adjusted operating margin contracted 65 basis points in the quarter to 9.40 percent from 10.05 percent in the last year period.
"Our investment in commercial resources over the last two years proved to be the difference-maker, as we delivered the top line growth needed to drive our strong overall results," said Robert M. Patterson, chairman, president and chief executive officer, PolyOne Corporation. "In total, revenue increased 6% to $899 million compared to $847 million in the prior year. Through increased sales force efficiency and effectiveness, new products and value-added services, we achieved broad-based organic sales growth of 5%."
Operating cash flow remains almost stable Polyone Corp has spent $23.70 million cash to meet operating activities during the quarter as against cash outgo of $23.50 million in the last year period.
The company has spent $35.50 million cash to meet investing activities during the quarter as against cash outgo of $92.40 million in the last year period.
The company has spent $11 million cash to carry out financing activities during the quarter as against cash outgo of $9.20 million in the last year period.
Cash and cash equivalents stood at $157.70 million as on Mar. 31, 2017, up 1.48 percent or $2.30 million from $155.40 million on Mar. 31, 2016.
Working capital increases
Polyone Corp has recorded an increase in the working capital over the last year. It stood at $467.40 million as at Mar. 31, 2017, up 8.57 percent or $36.90 million from $430.50 million on Mar. 31, 2016. Current ratio was at 1.90 as on Mar. 31, 2017, up from 1.83 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 14 days for the quarter from 33 days for the last year period. Days sales outstanding went down to 40 days for the quarter compared with 42 days for the same period last year.
Days inventory outstanding has decreased to 21 days for the quarter compared with 42 days for the previous year period. At the same time, days payable outstanding went down to 48 days for the quarter from 51 for the same period last year.
Debt moves up Polyone Corp has witnessed an increase in total debt over the last one year. It stood at $1,297.10 million as on Mar. 31, 2017, up 8.74 percent or $104.20 million from $1,192.90 million on Mar. 31, 2016. Total debt was 46.71 percent of total assets as on Mar. 31, 2017, compared with 45.45 percent on Mar. 31, 2016. Debt to equity ratio was at 1.77 as on Mar. 31, 2017, up from 1.72 as on Mar. 31, 2016. Interest coverage ratio improved to 5.58 for the quarter from 4.88 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
