Altra Industrial Motion Corp. (AIMC) has reported 17.21 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $10.33 million, or $0.36 a share in the quarter, compared with $8.81 million, or $0.34 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $15.28 million, or $0.53 a share compared with $9.90 million or $0.38 a share, a year ago. Revenue during the quarter grew 19.39 percent to $215.44 million from $180.45 million in the previous year period. Gross margin for the quarter expanded 44 basis points over the previous year period to 30.71 percent. Total expenses were 91.80 percent of quarterly revenues, up from 91.70 percent for the same period last year. That has resulted in a contraction of 10 basis points in operating margin to 8.20 percent.
Operating income for the quarter was $17.66 million, compared with $14.98 million in the previous year period.
However, the adjusted operating income for the quarter stood at $22.90 million compared to $16.53 million in the prior year period. At the same time, adjusted operating margin improved 147 basis points in the quarter to 10.63 percent from 9.16 percent in the last year period.
"We began 2017 with a strong first quarter in which the progress we made on our key strategic initiatives dovetailed with a modest improvement in certain of our more challenged end markets,” said Carl Christenson, Altras chairman and chief executive officer. "On the top line, we realized 1.6% organic growth" the largest increase in 9 quarters" and a 19% overall increase, including the impact of the Stromag acquisition and the effect of changes in foreign exchange rates. Our bottom line outpaced expectations, as we drove a 6% increase in GAAP EPS and a 39% increase in recurring EPS."
Altra Industrial Motion Corp. projects revenue to be in the range of $840 million to $855 million for financial year 2017. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.70 to $1.80. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.83 to $1.93 on adjusted basis.
Operating cash flow drops significantly
Altra Industrial Motion Corp. has generated cash of $3.02 million from operating activities during the quarter, down 50.05 percent or $ 3.03 million, when compared with the last year period. The company has spent $7.33 million cash to meet investing activities during the quarter as against cash outgo of $5.65 million in the last year period.
The company has spent $13.75 million cash to carry out financing activities during the quarter as against cash outgo of $4.63 million in the last year period.
Cash and cash equivalents stood at $52.94 million as on Mar. 31, 2017, up 18.05 percent or $8.09 million from $44.84 million on Mar. 31, 2016.
Working capital increases
Altra Industrial Motion Corp. has recorded an increase in the working capital over the last year. It stood at $220.90 million as at Mar. 31, 2017, up 16.06 percent or $30.56 million from $190.34 million on Mar. 31, 2016. Current ratio was at 2.72 as on Mar. 31, 2017, down from 2.95 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 61 days for the quarter from 111 days for the last year period. Days sales outstanding went down to 49 days for the quarter compared with 52 days for the same period last year.
Days inventory outstanding has decreased to 42 days for the quarter compared with 87 days for the previous year period. At the same time, days payable outstanding went up to 31 days for the quarter from 28 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 $317.99 million as on Mar. 31, 2017, up 35.43 percent or $83.19 million from $234.80 million on Mar. 31, 2016. Total debt was 36.24 percent of total assets as on Mar. 31, 2017, compared with 36.92 percent on Mar. 31, 2016. Debt to equity ratio was at 0.92 as on Mar. 31, 2017, down from 0.94 as on Mar. 31, 2016. Interest coverage ratio improved to 10.36 for the quarter from 5.17 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
