SunCoke Energy, Inc. (SXC) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $1 million, or $ 0.02 a share in the quarter, against a net loss of $4.10 million, or $0.06 a share in the last year period.
Revenue during the quarter went down marginally by 0.45 percent to $309.70 million from $311.10 million in the previous year period. Gross margin for the quarter expanded 114 basis points over the previous year period to 24.31 percent. Total expenses were 92.80 percent of quarterly revenues, down from 96.95 percent for the same period last year. This has led to an improvement of 415 basis points in operating margin to 7.20 percent.
Operating income for the quarter was $22.30 million, compared with $9.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $55.60 million compared with $43.80 million in the prior year period. At the same time, adjusted EBITDA margin improved 387 basis points in the quarter to 17.95 percent from 14.08 percent in the last year period.
"We are pleased with our first quarter performance, and this fast start has positioned us to deliver upon our financial guidance in 2017," said Fritz Henderson, Chairman, President and Chief Executive Officer of SunCoke Energy, Inc.
For financial year 2017, SunCoke Energy, Inc. projects net loss to be in the range of $35 million to $22 million.
Operating cash flow remains almost stable
Cash flow from operating activities was almost stable for the quarter at $29.50 million, when compared with the previous year period
Cash flow from investing activities was $7.90 million for the quarter as against cash outgo of $5.30 million in the last year period.
The company has spent $14.20 million cash to carry out financing activities during the quarter as against cash outgo of $45.70 million in the last year period.
Cash and cash equivalents stood at $157.20 million as on Mar. 31, 2017, up 54.42 percent or $55.40 million from $101.80 million on Mar. 31, 2016.
Working capital increases
SunCoke Energy, Inc. has recorded an increase in the working capital over the last year. It stood at $161.10 million as at Mar. 31, 2017, up 12.89 percent or $18.40 million from $142.70 million on Mar. 31, 2016. Current ratio was at 1.88 as on Mar. 31, 2017, down from 1.89 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 1 days for the quarter from 31 days for the last year period. Days sales outstanding went down to 21 days for the quarter compared with 23 days for the same period last year.
Days inventory outstanding has decreased to 21 days for the quarter compared with 44 days for the previous year period. At the same time, days payable outstanding went up to 43 days for the quarter from 36 for the same period last year.
Debt comes down
SunCoke Energy, Inc. has recorded a decline in total debt over the last one year. It stood at $853.10 million as on Mar. 31, 2017, down 9.81 percent or $92.80 million from $945.90 million on Mar. 31, 2016. Total debt was 40.13 percent of total assets as on Mar. 31, 2017, compared with 43.20 percent on Mar. 31, 2016. Debt to equity ratio was at 1.49 as on Mar. 31, 2017, down from 1.51 as on Mar. 31, 2016. Interest coverage ratio improved to 1.63 for the quarter from 0.68 for the same period last year.
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