Kemet Corporation (KEM) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $52.91 million, or $ 0.93 a share in the quarter, against a net loss of $15.17 million, or $0.33 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $7.84 million, or $0.14 a share compared with $1.81 million or $0.04 a share, a year ago. Revenue during the quarter grew 7.39 percent to $197.52 million from $183.93 million in the previous year period. Gross margin for the quarter expanded 239 basis points over the previous year period to 25.23 percent. Total expenses were 95.57 percent of quarterly revenues, up from 95.32 percent for the same period last year. That has resulted in a contraction of 25 basis points in operating margin to 4.43 percent.
Operating income for the quarter was $8.74 million, compared with $8.60 million in the previous year period.
However, the adjusted operating income for the quarter stood at $17.91 million compared to $12.91 million in the prior year period. At the same time, adjusted operating margin improved 205 basis points in the quarter to 9.07 percent from 7.02 percent in the last year period.
"It was another milestone for KEMET with the fifth quarter of sequential growth and cash generation exceeding our forecast," stated Per Loof KEMETs chief executive officer. “While many doubted our ability to bring the TOKIN acquisition to closure it was an exciting quarter and now a start to our next fiscal year with a transaction that is unique, transformational, and deleveraging to the balance sheet. The work now begins to bring more value to our shareholders through this combination,” continued Loof.
Operating cash flow improves significantlyKemet Corporation has generated cash of $71.67 million from operating activities during the year, up 121.43 percent or $39.30 million, when compared with the last year. The company has spent $25.60 million cash to meet investing activities during the year as against cash outgo of $20.59 million in the last year. It has incurred net capital expenditure of $25.60 million on net basis during the year, up 44.65 percent or $7.90 million from year ago.
The company has spent $0.12 million cash to carry out financing activities during the year as against cash outgo of $3.80 million in the last year period.
Cash and cash equivalents stood at $109.77 million as on Mar. 31, 2017, up 68.87 percent or $44.77 million from $65 million on Mar. 31, 2016.
Working capital increases
Kemet Corporation has recorded an increase in the working capital over the last year. It stood at $248.87 million as at Mar. 31, 2017, up 8.78 percent or $20.08 million from $228.79 million on Mar. 31, 2016. Current ratio was at 2.91 as on Mar. 31, 2017, up from 2.85 on Mar. 31, 2016.
Debt remains almost stable
Total debt of Kemet Corporation remained almost stable for the quarter at $388.21 million, when compared with the last year period. Total debt was 52.85 percent of total assets as on Mar. 31, 2017, compared with 55.20 percent on Mar. 31, 2016. Debt to equity ratio was at 2.51 as on Mar. 31, 2017, down from 3.45 as on Mar. 31, 2016. Interest coverage ratio improved to 0.87 for the quarter from 0.87 for the same period last year. 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: [email protected]
