S&W Seed Company (SANW) saw its loss widen to $3.22 million, or $0.19 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $1.87 million, or $0.14 a share. On the other hand, adjusted net loss for the quarter narrowed to $1.58 million, or $0.09 a share from a loss of $1.66 million or $0.12 a share, a year ago.
Revenue during the quarter went down marginally by 0.04 percent to $12.25 million from $12.25 million in the previous year period. Gross margin for the quarter contracted 25 basis points over the previous year period to 15.86 percent. Operating margin for the quarter stood at negative 17.05 percent as compared to a negative 16.14 percent for the previous year period.
Operating loss for the quarter was $2.09 million, compared with an operating loss of $1.98 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $2.09 million compared to operating loss of $1.72 million in prior year period.
Mark Grewal, president and chief executive officer of S&W Seed Company, commented "The first quarter of our fiscal year is seasonally our lowest sales volume quarter of the year, but our busiest production period as we work with our contracted grower base to finalize the North American harvests which will set the stage for the remainder of the fiscal year. Our production team did an outstanding job securing a 15% increase in acreage dedicated to seed production."
Operating cash flow drops significantly
S&W Seed Company has generated cash of $7.60 million from operating activities during the quarter, down 30.75 percent or $ 3.37 million, when compared with the last year period.
The company has spent $0.29 million cash to meet investing activities during the quarter as against cash outgo of $0.36 million in the last year period.
The company has spent $9.08 million cash to carry out financing activities during the quarter as against cash outgo of $5.50 million in the last year period.
Cash and cash equivalents stood at $5.26 million as on Sep. 30, 2016, down 37.17 percent or $3.11 million from $8.38 million on Sep. 30, 2015.
Working capital increases sharply
S&W Seed Company has recorded an increase in the working capital over the last year. It stood at $15.84 million as at Sep. 30, 2016, up 76.13 percent or $6.85 million from $8.99 million on Sep. 30, 2015. Current ratio was at 1.23 as on Sep. 30, 2016, up from 1.12 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 195 days for the quarter from 320 days for the last year period. Days sales outstanding went up to 204 days for the quarter compared with 198 days for the same period last year.
Days inventory outstanding has decreased to 221 days for the quarter compared with 322 days for the previous year period. At the same time, days payable outstanding went up to 230 days for the quarter from 199 for the same period last year.
Debt comes down significantly
S&W Seed Company has recorded a decline in total debt over the last one year. It stood at $27.17 million as on Sep. 30, 2016, down 33.47 percent or $13.67 million from $40.84 million on Sep. 30, 2015. Total debt was 17.66 percent of total assets as on Sep. 30, 2016, compared with 27.66 percent on Sep. 30, 2015. Debt to equity ratio was at 0.41 as on Sep. 30, 2016, down from 0.82 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
