Alamo Group (ALG) has reported 10.30 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $13.24 million, or $1.14 a share in the quarter, compared with $14.76 million, or $1.28 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $13.24 million, or $1.14 a share compared with $15.11 million or $1.31 a share, a year ago.
Revenue during the quarter dropped 6.41 percent to $216.77 million from $231.61 million in the previous year period. Gross margin for the quarter expanded 41 basis points over the previous year period to 25.24 percent. Total expenses were 90.31 percent of quarterly revenues, up from 89.82 percent for the same period last year. That has resulted in a contraction of 48 basis points in operating margin to 9.69 percent.
Operating income for the quarter was $21.01 million, compared with $23.57 million in the previous year period.
However, the adjusted operating income for the quarter stood at $21.01 million compared to $24.12 million in the prior year period. At the same time, adjusted operating margin contracted 72 basis points in the quarter to 9.69 percent from 10.41 percent in the last year period.
Ron Robinson, Alamo Group's president and chief executive officer commented, "Weakness in several of our market sectors combined with unfavorable currency translation from the weaker British pound continue to constrain our Company's results. These effects impacted both our sales and earnings for the third quarter of 2016. Despite this, the Company made continued progress in other areas. Gross margins were up for both the quarter and year to date as we continue to work on operational improvement, even with lower volume. Our Balance Sheet also reflected positive developments as our inventory turns improved and our total debt, net of cash, has improved nearly $54 million in the last twelve months. Consequently, despite weak sales, the Company's financial strength continues to improve.
Working capital increases marginallyAlamo Group has recorded an increase in the working capital over the last year. It stood at $308.10 million as at Sep. 30, 2016, up 1.37 percent or $4.17 million from $303.94 million on Sep. 30, 2015. Current ratio was at 4.64 as on Sep. 30, 2016, up from 4.03 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 91 days for the quarter from 134 days for the last year period. Days sales outstanding went up to 78 days for the quarter compared with 74 days for the same period last year.
Days inventory outstanding has decreased to 44 days for the quarter compared with 92 days for the previous year period. At the same time, days payable outstanding went down to 31 days for the quarter from 32 for the same period last year.
Debt comes downAlamo Group has recorded a decline in total debt over the last one year. It stood at $135.39 million as on Sep. 30, 2016, down 22.63 percent or $39.61 million from $175 million on Sep. 30, 2015. Total debt was 21.67 percent of total assets as on Sep. 30, 2016, compared with 27.14 percent on Sep. 30, 2015. Debt to equity ratio was at 0.35 as on Sep. 30, 2016, down from 0.49 as on Sep. 30, 2015. Interest coverage ratio improved to 14.96 for the quarter from 14.11 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: editor@irisindia.net
