SiteOne Landscape Supply, Inc (SITE) has reported 30.70 percent jump in profit for the quarter ended Oct. 02, 2016. The company has earned $14.90 million, or $0.36 a share in the quarter, compared with $11.40 million, or $0.01 a share for the same period last year. Revenue during the quarter grew 9.89 percent to $444.50 million from $404.50 million in the previous year period. Gross margin for the quarter expanded 187 basis points over the previous year period to 31.14 percent. Total expenses were 92.82 percent of quarterly revenues, down from 94.68 percent for the same period last year. This has led to an improvement of 186 basis points in operating margin to 7.18 percent.
Operating income for the quarter was $31.90 million, compared with $21.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $43.70 million compared with $33.70 million in the prior year period. At the same time, adjusted EBITDA margin improved 150 basis points in the quarter to 9.83 percent from 8.33 percent in the last year period.
“Despite softer markets than anticipated, we delivered strong year-over-year growth in Net Sales, Gross Profit, Net Income and Adjusted EBITDA,” said Doug Black, SiteOne’s Chief Executive Officer. “We continued to expand our Adjusted EBITDA margin through excellent execution of our operational initiatives. Our organic sales growth initiatives are still in the very early innings and we expect them to contribute more meaningfully in 2017 and beyond. Our acquisitions performed well and we are accelerating our M&A activity with two acquisitions during the third quarter, the purchase of Loma Vista Nursery in November and additional acquisitions that we expect to complete during the winter. We are encouraged by the momentum from our commercial and operational initiatives and our deep acquisition pipeline as we head into 2017.”
Operating cash flow drops significantly
SiteOne Landscape Supply, Inc has generated cash of $9.20 million from operating activities during the nine month period, down 79.37 percent or $35.40 million, when compared with the last year period. The company has spent $62.50 million cash to meet investing activities during the nine month period as against cash outgo of $106.10 million in the last year period. It has incurred net capital expenditure of $5.90 million on net basis during the nine month period, down 6.35 percent or $0.40 million from year ago period.
Cash flow from financing activities was $59 million for the nine month period, down 23.77 percent or $18.40 million, when compared with the last year period.
Cash and cash equivalents stood at $25.90 million as on Oct. 02, 2016, down 1.52 percent or $0.40 million from $26.30 million on Sep. 27, 2015.
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