Rayonier Advanced Materials Inc. (RYAM) has reported a 15.38 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $11 million, or $0.18 a share in the quarter, compared with $13 million, or $0.30 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $11 million, or $0.18 a share compared with $14 million or $0.32 a share, a year ago.
Revenue during the quarter dropped 4.55 percent to $231 million from $242 million in the previous year period. Gross margin for the quarter contracted 248 basis points over the previous year period to 18.18 percent. Total expenses were 88.74 percent of quarterly revenues, up from 88.02 percent for the same period last year. That has resulted in a contraction of 73 basis points in operating margin to 11.26 percent.
Operating income for the quarter was $26 million, compared with $29 million in the previous year period.
However, the adjusted operating income for the quarter stood at $26 million compared to $30 million in the prior year period. At the same time, adjusted operating margin contracted 114 basis points in the quarter to 11.26 percent from 12.40 percent in the last year period.
"Our employees' execution against our 2016 objectives delivered impressive financial and operational results," said Paul Boynton, chairman, president and chief executive officer. "Our focus on transforming our business yielded significant improvements in our cost position and our efforts to reposition our balance sheet provide a foundation for future growth initiatives."
For fiscal year 2017, Rayonier Advanced Materials Inc. expects net income to be in the range of $41 million to $48 million.
Operating cash flow improves
Rayonier Advanced Materials Inc. has generated cash of $232 million from operating activities during the year, up 14.85 percent or $30 million, when compared with the last year.
The company has spent $87 million cash to meet investing activities during the year as against cash outgo of $78 million in the last year.
Cash flow from financing activities was $80 million for the year as against cash outgo of $89 million in the last year period.
Cash and cash equivalents stood at $326 million as on Dec. 31, 2016, up 222.77 percent or $225 million from $101 million on Dec. 31, 2015.
Working capital increases sharply
Rayonier Advanced Materials Inc. has recorded an increase in the working capital over the last year. It stood at $393 million as at Dec. 31, 2016, up 100.19 percent or $196.69 million from $196.31 million on Dec. 31, 2015. Current ratio was at 4.12 as on Dec. 31, 2016, up from 2.49 on Dec. 31, 2015.
Debt comes down
Rayonier Advanced Materials Inc. has recorded a decline in total debt over the last one year. It stood at $783 million as on Dec. 31, 2016, down 8.74 percent or $75 million from $858 million on Dec. 31, 2015. Total debt was 55.06 percent of total assets as on Dec. 31, 2016, compared with 66.59 percent on Dec. 31, 2015.
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