Primo Water Corp (PRMW) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $11.70 million, or $ 0.39 a share in the quarter, against a net profit of $0.04 million in the last year period. On the other hand, adjusted net income from continuing operations for the quarter stood at $1.67 million, or $0.05 a share compared with $1.25 million or $0.04 a share, a year ago.
Revenue during the quarter grew 28.21 percent to $40.36 million from $31.48 million in the previous year period. Gross margin for the quarter contracted 42 basis points over the previous year period to 28.55 percent. Operating margin for the quarter stood at negative 18.20 percent as compared to a positive 2.31 percent for the previous year period.
Operating loss for the quarter was $7.34 million, compared with an operating income of $0.73 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $6.34 million compared with $4.76 million in the prior year period. At the same time, adjusted EBITDA margin improved 58 basis points in the quarter to 15.70 percent from 15.12 percent in the last year period.
"2016 was a transformational year for our company," commented Billy D. Prim, Primo Water's chief executive officer. "In the fourth quarter we completed the acquisition of Glacier Water, and Primo is now ideally positioned as the market leader in all three categories in which we compete; dispensers, exchange and refill. We are very pleased our team continued their consistently high level of execution on our strategic initiatives to help us deliver record sales and EBITDA. Looking ahead, we believe we can capture a majority of the bulk water revenue at retail as we leverage our market leadership for water appliances and consumables."
For fiscal year 2017, Primo Water Corp forecasts revenue to be in the range of $280 million to $285 million.
For the first-quarter, Primo Water Corp forecasts revenue to be in the range of $62 million to $65 million.
Operating cash flow improves
Primo Water Corp has generated cash of $16.38 million from operating activities during the year, up 20.81 percent or $2.82 million, when compared with the last year.
The company has spent $163.28 million cash to meet investing activities during the year as against cash outgo of $7.75 million in the last year. It has incurred net capital expenditure of $9.88 million on net basis during the year, up 87.80 percent or $4.62 million from year ago.
Cash flow from financing activities was $160.69 million for the year as against cash outgo of $4.04 million in the last year period.
Cash and cash equivalents stood at $15.59 million as on Dec. 31, 2016, up 753.56 percent or $13.76 million from $1.83 million on Dec. 31, 2015.
Debt increases substantially
Primo Water Corp has witnessed an increase in total debt over the last one year. It stood at $272.45 million as on Dec. 31, 2016, up 1,257.15 percent or $252.37 million from $20.08 million on Dec. 31, 2015. Total debt was 69.15 percent of total assets as on Dec. 31, 2016, compared with 30.95 percent on Dec. 31, 2015. Debt to equity ratio was at 4.23 as on Dec. 31, 2016, up from 0.77 as on Dec. 31, 2015.
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