ROYAL GOLD, INC. (RGLD) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $29.79 million, or $ 0.46 a share in the quarter, against a net loss of $45.05 million, or $0.69 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $29.79 million, or $0.46 a share compared with $10.95 million or $0.17 a share, a year ago.
Revenue during the quarter surged 59.27 percent to $117.95 million from $74.06 million in the previous year period. Gross margin for the quarter contracted 373 basis points over the previous year period to 80.79 percent. Total expenses were 65.33 percent of quarterly revenues, down from 71.39 percent for the same period last year. This has led to an improvement of 606 basis points in operating margin to 34.67 percent.
Operating income for the quarter was $40.89 million, compared with $21.18 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $88.12 million compared with $52.45 million in the prior year period. At the same time, adjusted EBITDA margin improved 388 basis points in the quarter to 74.71 percent from 70.83 percent in the last year period.
"Fiscal 2017 is off to a great start with two powerful business development catalysts and very strong financial results," commented Tony Jensen, president and chief executive officer. "Our purchase of another royalty at Cortez Crossroads provides additional exposure to one the world’s premier gold mines, while Centerra Gold's successful acquisition of Thompson Creek Metals adds a strong partner to our portfolio and provides clarity for our Mount Milligan interest. In addition to these successes, the benefits of other investments we made over the last six quarters are now contributing to the record financial results we are announcing today."
Operating cash flow improves significantly
ROYAL GOLD, INC. has generated cash of $55.13 million from operating activities during the quarter, up 2,113.25 percent or $52.64 million, when compared with the last year period.
The company has spent $90.31 million cash to meet investing activities during the quarter as against cash outgo of $976.11 million in the last year period.
Cash flow from financing activities was $51.59 million for the quarter, down 84.60 percent or $283.49 million, when compared with the last year period.
Cash and cash equivalents stood at $133.04 million as on Sep. 30, 2016, up 27.54 percent or $28.73 million from $104.31 million on Sep. 30, 2015.
Working capital increases sharply
ROYAL GOLD, INC. has recorded an increase in the working capital over the last year. It stood at $166.40 million as at Sep. 30, 2016, up 32.92 percent or $41.21 million from $125.19 million on Sep. 30, 2015. Current ratio was at 7.50 as on Sep. 30, 2016, up from 5.62 on Sep. 30, 2015.
Days sales outstanding went down to 35 days for the quarter compared with 51 days for the same period last year.
At the same time, days payable outstanding went down to 22 days for the quarter from 53 for the same period last year.
Debt remains almost stable
Total debt of ROYAL GOLD, INC. remained almost stable for the quarter at $674.03 million, when compared with the last year period. Long-term debt of Royal Gold remained almost stable for the quarter at $674.03 million, when compared with the last year period. Total debt was 21.41 percent of total assets as on Sep. 30, 2016, compared with 20.90 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.29 as on Sep. 30, 2016, when compared with the last year.
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