Stillwater Mining Company (SWC) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $12.60 million, or $ 0.10 a share in the quarter, against a net loss of $11.88 million, or $0.10 a share in the last year period. On an adjusted basis, net profit for the quarter was $12.60 million, when compared with net loss $8.19 million in the last year period.
Revenue during the quarter grew 16.73 percent to $196.62 million from $168.44 million in the previous year period. Gross margin for the quarter expanded 1072 basis points over the previous year period to 13.78 percent. Operating margin for the quarter period stood at positive 9.16 percent as compared to a negative 3.67 percent for the previous year period.
Operating income for the quarter was $18.01 million, compared with an operating loss of $6.18 million in the previous year period.
Commenting on the third quarter 2016 results, Mick McMullen, the Company’s president and chief executive officer stated, "The third quarter 2016 results demonstrate that Stillwater Mining Company continues to deliver on operational plans and stated objectives. Our efforts to grow the recycling business have been successful as we processed 175,000 ounces of recycled PGMs during the third quarter of 2016, which was a Company record. Mined production and costs were in-line with our expectations. Based on our year-to-date results and future outlook, we remain confident in our ability to achieve the improved full-year guidance targets provided last quarter.
Operating cash flow drops significantlyStillwater Mining Company has generated cash of $38.16 million from operating activities during the nine month period, down 49.58 percent or $37.52 million, when compared with the last year period. The company has spent $71.89 million cash to meet investing activities during the nine month period as against cash outgo of $159.49 million in the last year period. It has incurred net capital expenditure of $60.72 million on net basis during the nine month period, down 26.84 percent or $22.28 million from year ago period.
The company has spent $0.63 million cash to carry out financing activities during the nine month period as against cash outgo of $62.52 million in the last year period.
Cash and cash equivalents stood at $112.97 million as on Sep. 30, 2016, down 15.67 percent or $20.99 million from $133.96 million on Sep. 30, 2015.
Working capital decreases marginally
Stillwater Mining Company has witnessed a decline in the working capital over the last year. It stood at $532.87 million as at Sep. 30, 2016, down 3.66 percent or $20.26 million from $553.13 million on Sep. 30, 2015. Current ratio was at 8.14 as on Sep. 30, 2016, up from 8.14 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 25 days for the quarter from 58 days for the last year period. Days sales outstanding were almost stable at 1 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 38 days for the quarter compared with 72 days for the previous year period. At the same time, days payable outstanding was almost stable at 13 days for the quarter, when compared with the previous year period.
Debt moves upStillwater Mining Company has witnessed an increase in total debt over the last one year. It stood at $269.06 million as on Sep. 30, 2016, up 5.15 percent or $13.19 million from $255.87 million on Sep. 30, 2015. Total debt was 20.57 percent of total assets as on Sep. 30, 2016, compared with 19.43 percent on Sep. 30, 2015. Debt to equity ratio was at 0.29 as on Sep. 30, 2016, up from 0.28 as on Sep. 30, 2015. 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
