Rand Logistics (RLOG) has reported 74.75 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $3 million, or $0.14 a share in the quarter, compared with $11.87 million, or $0.58 a share for the same period last year.
Revenue during the quarter dropped 24.44 percent to $39.24 million from $51.93 million in the previous year period. Total expenses were 80.66 percent of quarterly revenues, up from 80.13 percent for the same period last year. That has resulted in a contraction of 54 basis points in operating margin to 19.34 percent.
Operating income for the quarter was $7.59 million, compared with $10.32 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $13.26 million compared with $16.10 million in the prior year period. At the same time, adjusted EBITDA margin improved 280 basis points in the quarter to 33.79 percent from 30.99 percent in the last year period.
"Our results in the second quarter of fiscal year 2017 reflected an unexpected decline in demand from our aggregates customers, particularly as it related to materials for use in public infrastructure projects," commented Ed Levy, president and chief executive officer of Rand. "According to the Lake Carriers' Association, overall lakes-wide stone demand declined 13.9% versus the comparable quarter last year. Our stone tonnage declined by 12.1%. This, combined with lower salt tonnage due to higher than normal inventories resulting from last year's unusually dry and mild winter in the Great Lakes region, resulted in inefficiencies in our trade network and caused our vessel margin per day to decline by approximately 4.4% versus the comparable quarter last year."
Working capital turns negative
Working capital of Rand Logistics has turned negative to $1.85 million on Sep. 30, 2016 from positive $6.20 million on Sep. 30, 2015. Current ratio was at 0.91 as on Sep. 30, 2016, down from 1.24 on Sep. 30, 2015.
Days sales outstanding were almost stable at 37 days for the quarter, when compared with the last year period.
Debt comes down marginally
Rand Logistics has recorded a decline in total debt over the last one year. It stood at $193.07 million as on Sep. 30, 2016, down 1.89 percent or $3.72 million from $196.79 million on Sep. 30, 2015. Rand Logistics has recorded a decline in long-term debt over the last one year. It stood at $193.07 million as on Sep. 30, 2016, down 1.89 percent or $3.72 million from $196.79 million on Sep. 30, 2015. Total debt was 74.29 percent of total assets as on Sep. 30, 2016, compared with 69.60 percent on Sep. 30, 2015. Debt to equity ratio was at 4.89 as on Sep. 30, 2016, up from 3.34 as on Sep. 30, 2015. Interest coverage ratio improved to 1.77 for the quarter from 3.48 for the same period last year.
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