Turning Point Brands, Inc (TPB) has reported 620.06 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $17.09 million, or $0.87 a share in the quarter, compared with $2.37 million, or $0.28 a share for the same period last year. Revenue during the quarter grew 15.15 percent to $53.82 million from $46.74 million in the previous year period. Gross margin for the quarter contracted 193 basis points over the previous year period to 48.71 percent. Total expenses were 81.40 percent of quarterly revenues, up from 75.89 percent for the same period last year. That has resulted in a contraction of 551 basis points in operating margin to 18.60 percent.
Operating income for the quarter was $10.01 million, compared with $11.27 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $13.47 million compared with $11.19 million in the prior year period. At the same time, adjusted EBITDA margin improved 109 basis points in the quarter to 25.03 percent from 23.94 percent in the last year period.
TPB President and Chief Executive Officer, Larry Wexler said “The year 2016 was a significant turning point for our company. We substantially improved our capital structure through the initial public offering (“IPO”), once again generated solid operating results and cash flows, continued our organic growth initiatives and completed two strategic acquisitions.” Commenting on the fourth quarter of 2016, he noted, “We are especially pleased with the progress we have made in our core tobacco portfolio in this quarter, where net sales and gross profits are up 7.2% and 6.4%, respectively, compared to the fourth quarter of 2015.”
Operating cash flow drops significantly
Turning Point Brands, Inc has generated cash of $9.13 million from operating activities during the year, down 62.64 percent or $15.30 million, when compared with the last year. The company has spent $26.83 million cash to meet investing activities during the year as against cash outgo of $2.03 million in the last year.
Cash flow from financing activities was $15.73 million for the year as against cash outgo of $26.03 million in the last year period.
Cash and cash equivalents stood at $2.86 million as on Dec. 31, 2016, down 40.74 percent or $1.97 million from $4.84 million on Dec. 31, 2015.
Debt comes down significantly
Turning Point Brands, Inc has recorded a decline in total debt over the last one year. It stood at $218.22 million as on Dec. 31, 2016, down 25.38 percent or $74.22 million from $292.44 million on Dec. 31, 2015. Interest coverage ratio improved to 1.75 for the quarter from 1.32 for the same period last year.
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