Earnings Review and Free Research Report: Dominion Diamond’s Q1 Top-line rose 18% on Positive Diamond Market

LONDON, UK / ACCESSWIRE / June 29, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Dominion Diamond Corp. (NYSE: DDC), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=DDC, following the Company’s reporting of its financial results for the first quarter fiscal 2018 (Q1 FY18) on June 12, 2017. The Yellowknife, Canada-based Company reported 18% y-o-y growth in its quarterly sales. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at: http://protraderdaily.com/register/.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on DDC. With the links below you can directly download the report of your stock of interest free of charge at: http://protraderdaily.com/optin/?symbol=DDC.

Earnings Reviewed

During the quarter ended on April 30, 2017, Dominion Diamond reported sales of $210.98 million compared to $178.26 million recorded at the end of Q1 FY17. The Company’s sales growth of approximately $33 million from the prior year is primarily attributed to a positive diamond market along with an auction of approximately $21 million of high value fancy colored diamonds.

The diamond mining Company reported a net loss of $7.84 million, or $0.09 loss per diluted share, in Q1 FY18 compared to $5.30 million, or $0.01 per diluted share, in Q1 FY17. The Company’s net loss includes a foreign currency exchange impact on income tax expense of $13.6 million, or $0.16 per share, and restructuring costs of $2.3 million, or $0.02 per share, relating to the relocation of the corporate head office.

Operational Metrics

For the reported quarter, Dominion Diamond’s cost of sales was $210.98 million compared to $178.26 million in Q1 FY17. The Company reported gross profit of $30.77 million in Q1 FY18 against gross loss of $18.82 million in the year ago same quarter. During Q1 FY18, Dominion Diamond’s selling, general, and administrative expenses were $8.28 million versus $8.04 million in the prior year’s comparable quarter. The Company’s operating profit for Q1 FY18 came in at $20.22 million compared to operating loss of $26.85 million in Q1 FY17. Furthermore, the Company’s adjusted EBITDA increased to $97.0 million, or 46% of sales, in Q1 FY18 from $54.3 million, or 30% of sales, in last year’s comparable quarter.

Mine-Performance

Dominion Diamond’s Ekati Mine reported a y-o-y growth in sales during Q1 FY18 to $137.7 million from $105.1 million in Q1 FY17. The mine sold 1.83 million carats of diamonds at $75 per carat in Q1 FY18 compared to 1.55 million carats at $68 per carat in the previous year’s same quarter. The mine’s adjusted EBITDA surged to $64.3 million, or 47% of mine sales, in Q1 FY18 from $25.9 million, or 25% of mine sales, in the previous year’s corresponding quarter.

Diavik Mine’s sales stood at $73.3 million in Q1 FY18 compared to $73.1 million in the previous year’s same quarter. Diamond sales fell to 0.50 million carats in Q1 FY18 from 1.06 million carats in the year ago same quarter. However, average sales price surged to $147 per carat in Q1 FY17 from $69 per carat in the last year’s comparable quarter. Furthermore, the mine reported adjusted EBITDA of $40.3 million, or 55% of mine sales, in Q1 FY18 compared to $34.5 million, or 47% of mine sales, in the prior year’s corresponding quarter.

Cash Flow & Balance Sheet

During first three months of FY18, cash provided by operating activities was $56.68 million compared to $17.96 million in the prior year’s same period. At the close of books on April 30, 2017, Dominion Diamond had $131.17 million in cash and cash equivalents compared to $136.17 million at the close of books on January 31, 2017.

Share Repurchase

During Q1 FY18, the Company continued the share repurchase as per previously announced share repurchase plan. Since summer 2016 till May 2017, the company has returned approximately C$61 million to shareholders through repurchases and the cancellation of approximately 4.8 million shares.

Stock Performance

Dominion Diamond’s share price finished yesterday’s trading session at $12.79, slightly up 0.95%. A total volume of 329.47 thousand shares have exchanged hands. The Company’s stock price skyrocketed 0.47% in the last three months, 38.72% in the past six months, and 48.03% in the previous twelve months. Additionally, the stock soared 32.13% since the start of the year. Shares of the Company have a dividend yield of 3.13% and currently have a market cap of $1.03 billion.

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