Actuant Corporation (ATU) has reported a 67.86 percent plunge in profit for the quarter ended Nov. 30, 2016. The company has earned $4.96 million, or $0.08 a share in the quarter, compared with $15.45 million, or $0.26 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $12.04 million, or $0.20 a share compared with $18.65 million or $0.31 a share, a year ago.
Revenue during the quarter dropped 12.86 percent to $265.79 million from $305.01 million in the previous year period. Gross margin for the quarter contracted 58 basis points over the previous year period to 35.01 percent. Total expenses were 96.81 percent of quarterly revenues, up from 91.68 percent for the same period last year. That has resulted in a contraction of 513 basis points in operating margin to 3.19 percent.
Operating income for the quarter was $8.47 million, compared with $25.37 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $30.73 million compared with $41.60 million in the prior year period. At the same time, adjusted EBITDA margin contracted 208 basis points in the quarter to 11.56 percent from 13.64 percent in the last year period.
Randy Baker, president and chief executive officer of Actuant commented, "I’m pleased we met our financial commitments for the first quarter given continued weak conditions in most of our end markets. Core sales comparisons were difficult in Energy given last year’s large Middle East maintenance job, while the other segments experienced tepid but stable demand in the general industrial, agriculture and off-highway markets. Margins reflect the impact of the volume declines, and were in line with our outlook. Excluding restructuring and the previously announced transition charges, EPS of $0.20 modestly exceeded our guidance due to a lower effective income tax rate which we expect to also benefit the remainder of the year. First quarter cash flow was on track and our net debt leverage remains at a reasonable level. In summary, a solid start to the fiscal year. I am proud and appreciative of the efforts and execution of Actuant employees to meet our financial commitments."
For financial year 2017, Actuant Corp expects revenue to be in the range of $1,075 million to $1,125 million. The company projects diluted earnings per share to be in the range of $1 to $1.20 on adjusted basis.
For the second-quarter, Actuant Corp expects revenue to be in the range of $250 million to $260 million. The company projects diluted earnings per share to be in the range of $0.08 to $0.13.
Operating cash flow drops significantly
Actuant Corporation has generated cash of $12.08 million from operating activities during the quarter, down 43.28 percent or $ 9.22 million, when compared with the last year period.
The company has spent $5.01 million cash to meet investing activities during the quarter as against cash outgo of $4.62 million in the last year period.
The company has spent $4.99 million cash to carry out financing activities during the quarter as against cash outgo of $7.12 million in the last year period.
Cash and cash equivalents stood at stood at $176.87 million as at Nov. 30, 2016.
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