Real Industry, Inc. (RELY) saw its loss widen to $11.40 million, or $0.43 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $10.10 million, or $0.38 a share.
Revenue during the quarter grew 8.95 percent to $337.10 million from $309.40 million in the previous year period. Gross margin for the quarter contracted 139 basis points over the previous year period to 3.98 percent. Operating margin for the quarter stood at negative 1.07 percent as compared to a negative 0.68 percent for the previous year period.
Operating loss for the quarter was $3.60 million, compared with an operating loss of $2.10 million in the previous year period.
Mr. Kyle Ross, president and chief executive officer of Real Industry, stated, "We continued to make progress on Real Industry's long-term strategy of executing M&A opportunities that will diversify our cash flows and create a sustainably profitable enterprise, with a focused effort on leveraging our unique tax assets. We are also continuing efforts to strengthen Real Alloy's operations in advance of favorable trends in the marketplace. We are pleased that the positive turn in aluminum pricing and scrap spreads that improved throughout the first quarter in North America has continued into the early part of the second quarter and expect Segment Adjusted EBITDA in both of our segments to be further improved into the upcoming quarter."
Working capital increases marginally
Real Industry, Inc. has recorded an increase in the working capital over the last year. It stood at $133.90 million as at Mar. 31, 2017, up 2.06 percent or $2.70 million from $131.20 million on Mar. 31, 2016. Current ratio was at 1.78 as on Mar. 31, 2017, down from 1.88 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 18 days for the quarter from 33 days for the last year period. Days sales outstanding were almost stable at 34 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 16 days for the quarter compared with 30 days for the previous year period. At the same time, days payable outstanding was almost stable at 32 days for the quarter, when compared with the previous year period.
Debt moves up
Real Industry, Inc. has witnessed an increase in total debt over the last one year. It stood at $380.20 million as on Mar. 31, 2017, up 15.67 percent or $51.50 million from $328.70 million on Mar. 31, 2016. Total debt was 57.29 percent of total assets as on Mar. 31, 2017, compared with 46.71 percent on Mar. 31, 2016. Debt to equity ratio was at 16.60 as on Mar. 31, 2017, up from 2.31 as on Mar. 31, 2016.
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
