Federal Signal Corporation (FSS) has reported a 7.02 percent rise in profit for the quarter ended Jun. 30, 2015. The company has earned $18.30 million, or $0.29 a share in the quarter, compared with $17.10 million, or $0.27 a share for the same period last year.
Revenue during the quarter went down marginally by 1.62 percent to $230.80 million from $234.60 million in the previous year period. Gross margin for the quarter expanded 336 basis points over the previous year period to 28.47 percent. Total expenses were 87.35 percent of quarterly revenues, down from 89.81 percent for the same period last year. This has led to an improvement of 246 basis points in operating margin to 12.65 percent.
Operating income for the quarter was $29.20 million, compared with $23.90 million in the previous year period.
Operating cash flow improves
Federal Signal Corporationp has generated cash of $27.40 million from operating activities during the first half, up 17.09 percent or $4 million, when compared with the last year period.
The company has spent $5.50 million cash to meet investing activities during the first six months as against cash outgo of $2.30 million in the last year period. It has incurred net capital expenditure of $5.50 million on net basis during the first six months, down 40.86 percent or $3.80 million from year ago period.
The company has spent $16.40 million cash to carry out financing activities during the first six months as against cash outgo of $20.90 million in the last year period.
Cash and cash equivalents stood at $35.90 million as on Jun. 30, 2015, up 48.35 percent or $11.70 million from $24.20 million on Jun. 30, 2014.
Working capital increases sharply
Federal Signal Corporation has recorded an increase in the working capital over the last year. It stood at $174.90 million as at Jun. 30, 2015, up 32.30 percent or $42.70 million from $132.20 million on Jun. 30, 2014. Current ratio was at 2.33 as on Jun. 30, 2015, up from 1.88 on Jun. 30, 2014.
Cash conversion cycle (CCC) has decreased to 43 days for the quarter from 76 days for the last year period. Days sales outstanding went down to 24 days for the quarter compared with 41 days for the same period last year.
Days inventory outstanding has decreased to 33 days for the quarter compared with 64 days for the previous year period. At the same time, days payable outstanding went down to 14 days for the quarter from 29 for the same period last year.
Debt comes down significantly
Federal Signal Corporation has recorded a decline in total debt over the last one year. It stood at $48.60 million as on Jun. 30, 2015, down 35.63 percent or $26.90 million from $75.50 million on Jun. 30, 2014. Total debt was 7.36 percent of total assets as on Jun. 30, 2015, compared with 11.47 percent on Jun. 30, 2014. Debt to equity ratio was at 0.13 as on Jun. 30, 2015, up from 1.87 as on Jun. 30, 2014. Interest coverage ratio improved to 48.67 for the quarter from 26.56 for the same period last year.
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