Altra Industrial Motion Corp. (AIMC) has reported a 72.69 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $1.67 million, or $0.06 a share in the quarter, compared with $6.11 million, or $0.23 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $10.63 million, or $0.41 a share compared with $9.31 million or $0.36 a share, a year ago.
Revenue during the quarter went down marginally by 0.57 percent to $172.65 million from $173.63 million in the previous year period. Gross margin for the quarter expanded 71 basis points over the previous year period to 31.93 percent. Total expenses were 96.51 percent of quarterly revenues, up from 91.83 percent for the same period last year. That has resulted in a contraction of 468 basis points in operating margin to 3.49 percent.
Operating income for the quarter was $6.02 million, compared with $14.19 million in the previous year period.
However, the adjusted operating income for the quarter stood at $17.07 million compared to $17.67 million in the prior year period. At the same time, adjusted operating margin contracted 29 basis points in the quarter to 9.89 percent from 10.18 percent in the last year period.
"We concluded the year with fourth-quarter financial results that were in line with our expectations amidst continuing difficult conditions in many of our end markets," said Carl Christenson, Altra’s chairman and chief executive officer. "We achieved year-over-year gains in the fourth-quarter in both volume and pricing, but that growth was more than offset by foreign exchange headwinds. At the same time, we performed well on the bottom line due to the progress we are making on the key elements of our profit improvement strategy, including our consolidation, supply chain, pricing and operational excellence initiatives. We completed one plant closure during the fourth quarter and closed an additional facility in the current quarter, bringing the total number of consolidations to eight."
For fiscal year 2017, Altra Industrial Motion Corp. forecasts revenue to be in the range of $835 million to $855 million. The company expects diluted earnings per share to be in the range of $1.64 to $1.74. It company expects diluted earnings per share to be in the range of $1.75 to $1.85 on adjusted basis.
Operating cash flow declines
Altra Industrial Motion Corp. has generated cash of $76.64 million from operating activities during the year, down 11.72 percent or $10.17 million, when compared with the last year. The company has spent $206.91 million cash to meet investing activities during the year as against cash outgo of $21.70 million in the last year.
Cash flow from financing activities was $149.77 million for the year as against cash outgo of $55.78 million in the last year period.
Cash and cash equivalents stood at $69.12 million as on Dec. 31, 2016, up 37.36 percent or $18.80 million from $50.32 million on Dec. 31, 2015.
Working capital declines
Altra Industrial Motion Corp. has witnessed a decline in the working capital over the last year. It stood at $172.56 million as at Dec. 31, 2016, down 5.60 percent or $10.24 million from $182.81 million on Dec. 31, 2015. Current ratio was at 2.01 as on Dec. 31, 2016, down from 2.75 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 63 days for the quarter from 58 days for the last year period. Days sales outstanding went up to 32 days for the quarter compared with 26 days for the same period last year.
Days inventory outstanding has increased to 55 days for the quarter compared with 47 days for the previous year period. At the same time, days payable outstanding went up to 24 days for the quarter from 16 for the same period last year.
Debt increases substantially
Altra Industrial Motion Corp. has witnessed an increase in total debt over the last one year. It stood at $369.66 million as on Dec. 31, 2016, up 57.47 percent or $134.90 million from $234.76 million on Dec. 31, 2015. Total debt was 42.50 percent of total assets as on Dec. 31, 2016, compared with 37.13 percent on Dec. 31, 2015. Debt to equity ratio was at 1.30 as on Dec. 31, 2016, up from 0.97 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.97 for the quarter from 4.29 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
