Real Industry, Inc. (RELY) saw its loss widen to $80.40 million, or $2.84 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $3.90 million, or $0.16 a share.
Revenue during the quarter went up marginally by 1.33 percent to $304.50 million from $300.50 million in the previous year period. Gross margin for the quarter contracted 411 basis points over the previous year period to 3.68 percent. Operating margin for the quarter stood at negative 22.07 percent as compared to a positive 0.93 percent for the previous year period.
Operating loss for the quarter was $67.20 million, compared with an operating income of $2.80 million in the previous year period.
Mr. Kyle Ross, president, interim chief executive officer and chief investment officer of Real Industry, stated, "2016 was a year in which Real Alloy navigated a challenging market environment by leveraging its leading size, diversified operations, productivity focus and liquidity position. We have responded proactively to these difficult market conditions, and we feel well-positioned to benefit from the expected market recovery in 2017. During the year, our Real Alloy Europe (“RAEU”) segment delivered consistent performance, including the highest Segment Adjusted EBITDA in five years. RAEU is already off to a strong start in 2017, and market conditions are indicating another solid year ahead. Furthermore, we believe our recent multi-million dollar investment in our Norwegian operation has positioned that part of the business for a successful long-term future. In RANA the metal price environment created challenges that our productivity initiatives and flexible cost structure were unable to fully offset."
Working capital increases marginally
Real Industry, Inc. has recorded an increase in the working capital over the last year. It stood at $122.30 million as at Dec. 31, 2016, up 4.80 percent or $5.60 million from $116.70 million on Dec. 31, 2015. Current ratio was at 1.74 as on Dec. 31, 2016, down from 1.75 on Dec. 31, 2015.
Debt moves up
Real Industry, Inc. has witnessed an increase in total debt over the last one year. It stood at $356.50 million as on Dec. 31, 2016, up 13.39 percent or $42.10 million from $314.40 million on Dec. 31, 2015. Total debt was 55.23 percent of total assets as on Dec. 31, 2016, compared with 44.86 percent on Dec. 31, 2015. Debt to equity ratio was at 10.33 as on Dec. 31, 2016, up from 2.21 as on Dec. 31, 2015.
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